Marc Faber goes Long on Dollar

Investor Marc Faber, publisher of the Gloom, Boom & Doom Report gives Bloomberg interview. He has been bearish on the US dollar for a long time and this is a dramatic shift from his earlier stance. Interesting interview.

Highlights:
---------------

* Believes Global economy is in a recession

*Long the Dollar. Selling the Euro. Tightening of global liquidity relatively speaking.

* Weak demand in US leads to lower imports, higher oil prices tightens global liquidity and hence strengthens the dollar.

* Prefers US stocks.

* Dollar rally can continue for the next 3-6 months i.e. second half of 2008.

* Europeans have to cut because economy is more weaker than perceived and they will have to cut. US economy better in relative terms.

* Seven year commodity run going on.

* Commodities will continue going down in second-half of 2008.

* Avoiding commodities, steels etc. That was favorite trade of last 2 years and should be avioded.


Watch video