Faber on liquidity, the Yen, and Gold

Faber on liquidity, the Yen, and Gold

http://globaleconomicanalysis.blogspot.com/2007/03/faber-on-liquidity-yen-and-gold.html

This is a much recommended video.

Text summary included

-Prefers Japanese Equities over other markets on an relative performance basis
-The Yen is very undervalued
-The moment other markets weaken, carry trade money will flow back to Japan and strengthen the Yen
I'm skeptical of Japanese stocks like autos and electronics if the yen goes up in price as exporting becomes more of a challenge.  Any thoughts?  

Mish -

Great interview - short, sharp and to the point. Hard to argue with. Thanks for the link.

What are your thoughts on expropriation of gold in the US?  Seems more than a little excessive. We'll probably get capital controls well before that.

I do not think gold will be taken that way again.
Then again I do not think the price will get as high as he does (but I am guessing as he did not give a target).
If it was done, a tax would be put on profits rather than confiscation,  and I bet it would be coordinated across many countries.

good and long read

http://www.contraryinvestor.com/mo.htm