Brexit is a sideshow to the world economy, and gold remains an important asset in any portfolio, says Marc Faber, editor of the Gloom, Doom and Boom Report.
from The Gold Report
Brexit is a sideshow to the world economy, which began weakening the end of 2014, according to Marc Faber, editor of Gloom, Doom and Boom Report.
In an interview with CNBC on June 28, Faber cited as evidence the strong performance of Treasury bonds, saying “over the last 12 months U.S. long-term Treasuries are up 20%, and they are up 15% year to date.”
Faber believes that the British vote to leave the EU could lead to more quantitative easing. “Brexit will give a perfect excuse to the Federal Reserve not to increase interest rates and be most likely to launch QE4,” he said, adding that such a movement could give a boost to stock markets.
But long term, Faber believes all investors should hold some gold, calling it a “no brainer” in an environment of money printing.