Marc Faber says the U.S. economy is "terminally ill," and the current outlook doesn't seem to be improving.
"The conditions today are more fragile than they were ever before, and unless somebody comes and introduces minus 5 percent interest rates, I think the economy is really not in such a great shape."
"I'm actually amazed that people are so optimistic."
Nevertheless, Faber does see ways for investors to play global markets despite his view that the U.S. economic outlook is poor. Faber says that Europe is a good investment.
"I would rather build up cash positions and eventually invest in the euro," said Faber. "I think the euro is attractive and fairly priced. I think European stocks are also relatively attractive."
Regarding individual sectors, Faber encourages investors to look at interest rate sensitive stocks and infrastructure plays. REITs will also "do relatively well," he added, as well as consumer staples stocks, which have rallied almost 8 percent year to date.
And while technology stocks have been the best-performing group under the Trump presidency, Faber actually warns that "tech is very uncertain," and investors should be cautious when looking at the sector.
Source: Bloomberg
Junior Trader Stefan Panteleev
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