XYZ,
I agree with your comments, except that I believe the US has far more going for it than Latin America....
Real Estate: I am still not sure about the extent of the bubble. If interest rates start rising prior to stabilized growth in the economy, we will likely see housing price pressures. If that happens, a lot of average people are in trouble. I have a place on Nantucket that has substantially increased in value since I bought it. I have argued that it will not be immune to price deflation. Perhaps, as you put it, location will matter and it will retain some semblance of its present value as long as the economy remains in growth mode...
thank you for the link to the list of commodities. Barrons has been talking about them for a month. I have started to do a little research on how to invest in them. Barrons has a piece about coffee in this week's issue. I am also interested in Natural gas. I would like to detrmine which companies stand to benefit most directly in sustained natural gas prices.
another excerpt from the Faber interview in which he mentions a Chinese currency that he likes:
"wonder how these imbalances will be solved. What is possible is the dollar will collapse. But the only problem I see is, collapse against what? We have a dollar that is sick as a result of the internal imbalances, the trade and current account deficits. We have a Euro that is not a particularly encouraging currency, although I am more positive about Euroland than most people are, because I think the inclusion of other Eastern European countries will be positive. We have a yen that is also sick currency. So you tell me where to go. We have three major paper currencies, the Dollar, the Euro and the Yen. And then you have hard currency, which is gold, and a basket of commodities. I think the depreciation of the dollar will be against the basket of commodities. If there is one strong paper currency, it is probably the Chinese Renminbi at the present time." |
