Monday, September 19, 2011

Marc Faber: Diversification Advise

Marc Faber, an international investor with a reputation for being a contrarian and making uncanny predictions, offered some straight-forward investment advise on Bloomberg recently. Notice how it is very similar portfolio allocation to the Permanent Portfolio - the major difference is he advises to have 25% in real estate instead of 25% in long term treasury bonds.

Marc Faber: well I think it is very important to maintain diversification, I would advise to be 25 to 30 percent in equities with a large portion in overseas equities in particular emerging economies, I would advise him to hold some gold 25 percent or so, where by I think that for the next 6 months gold would rather decline than go up and I would hold some cash and bonds and then I would own may be 25 percent in real estate.

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