Faber: "As a contrarian, I would rather buy bonds and gold than equities" - Wealth Management

 "Maybe gold is signaling a deflationary collapse of all asset prices," warns contrarian economist

"Right now equities, bonds, and gold are very oversold," Marc Faber, publisher of the Gloom, Boom & Doom report, tells Bloomberg in a June 21 interview.

"In bonds and in gold, sentiment by historical standards is incredibly negative. In other words, as a contrarian, I would rather buy bonds and gold than equities. ... If you believe [Fed chief Ben Bernanke] means what he says, then you believe in Father Christmas. He said if the economy does not meet the expectations of the Fed in one year's time, they will consider additional measures. In other words, if the economy hasn't essentially fully recovered by mid-2014, more QE will be forthcoming. And as I said already three years ago, we're going to go with the Fed to QE99."

Faber later emailed MarketWatch with this warning: "Maybe gold is signaling a deflationary collapse of all asset prices. If this were indeed the case I suppose I would rather own gold than government bonds, high yield bonds and equities. If this scenario were to pass it would lead to even more money printing around the world."

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