Last week, famed economist Marc Faber spoke at a seminar for the Chartered Financial Analyst group out of Chicago, which brings together many of the top investment professionals in the United States. During his time behind the podium, the Gloom, Boom, and Doom economist advocated that the global economy and financial systems have reached such a point where investors need to re-allocate much of their portfolios to physical assets such as gold, and even suggested that they replace currencies and bonds with up to 25% of their allocation going towards the precious metal.
Every year, Faber is brought on stage by an organization of elite investors, the CFA Institute, during a seminar in Chicago for highly trained investment professionals from throughout the world. And he was there Thursday.
Why would an investing horror star be there? Because the most savvy of investment pros are taught not only to cherish the sweet delights of a soaring stock market, but also to look at what could go wrong, to test their happy thoughts and to prepare.
Faber challenges oblivious investors in his "Gloom, Boom & Doom Report," which focuses more on doom than boom. But he also points out that even during doom there is always something that will boom. Faber said he wouldn't go as far as to suggest people buy property in Aleppo, Syria, now, but you get the idea: Money is made when investors dig through carnage, not when they buy something that's been popular a long time.
Faber told the investment professionals gathered in Chicago that they shouldn't be prejudiced against gold. Although the typical investment pro keeps less than 1 percent of his or her portfolio in gold, Faber suggests 25 percent. He sees it as protection from a dangerous combination of tremendous government debt and massive bond-buying by central banks globally trying to fight off recession with near-zero interest rates. Besides gold, Faber has invested in Asian real estate and some stocks and bonds. - Chicago Tribune