"Dr Doom" sees Iran-Israel clash, says buy precious metals
Written by Reuters, Wednesday, 07 March 2012
"Political risk was high six months ago and is higher now. I think sooner or later, the U.S. or Israel will strike Iran - it's almost inevitable," Faber, who publishes the widely read Gloom Boom and Doom Report, told Reuters on the sidelines of an investment conference.
Brent crude traded near $123 per barrel in volatile trade on Tuesday on fears of a disruption in Iranian supplies. Israeli Prime Minister Benjamin Netanyahu showed no signs of backing away from possible military action against Iran following a Monday meeting with U.S. President Barack Obama, Reuters reports.
"Say war breaks out in the Middle East or anywhere else, (U.S. Federal Reserve chairman) Mr Bernanke will just print even more money -- they have no option...they haven't got the money to finance a war," said Faber.
"You have to be in precious metals and equities... most wars and most social unrest haven't destroyed corporations - they usually survive," he said.
He said that Middle East markets had largely bottomed out, though regime changes from the Arab Spring revolutions were unlikely to be investor-friendly.
Faber said that in uncertain times, investors had to reconcile themselves to volatility.
"If you can't live with volatility, stay in bed," he said, pointing out that even cash.
The 66 year-old, who has earned the moniker "Dr Doom," earlier told the conference that the likelihood of war in the Middle East was boosted by Western powers' imperatives of keeping China in check, given its dependence on Middle Eastern oil.
"The Americans and the western powers know very well they cannot contain China economically.... but one way to contain China is to switch on and switch off the oil tap from the Middle East," he said.
"I happen to think the Middle East will go up in flames," he said.
Top stories this week
Jens Thostrup - new head of PMR Terminals Business and Indirect Sales at Airbus Defence and Space
by AIRBUS Defence & Space, 30 October 2014
He replaces Pierre Lopez as head of the Terminals Business and Indirect Sales.
Nautic Africa signs exclusive agency agreement with Doen Pacific
by Nautic Africa, 29 October 2014
Nautic will install water-jet systems at competitive pricing for its customers in the sub-Saharan region.
New-generation Saab surface radar on track, in production
by Saab, 29 October 2014
Production of the first Giraffe 4A system for an undisclosed customer is ongoing at Saab in Gothenburg, Sweden.
Sustained revenue growth, strong order book drive Denel's new growth era
by Denel Corporate, 29 October 2014
The company's financial results for 2013/2014 show revenue growth of 17%, improved profit and the largest multi-year order book in its history.
Saab and Brazil sign contract for Gripen NG
by Saab, 28 October 2014
The defence company will develop and produce 36 Gripen NG fighter aircraft for the Brazilian Air Force.
Airbus Defence and Space boasts outstanding young scientists
by AIRBUS Defence & Space, 22 October 2014
Andreas Hofmann from the University of Erlangen-Nuremberg won the prize for the best bachelor's thesis.