LilBob

Marc Faber: ‘Gold a Bargain Compared to S&P500′

Anytime I see ecstatic quotations of outlandish values, such as:

<it>"At present, gold sells at about the same level as the S&P 500, but if I am right about the size of future US fiscal deficits and about the Fed neglecting to protect the purchasing power of the US dollar, I could envision a time when gold will sell for at least two or three times the value of the S&P 500."...</it>

it reminds me of past claims of assets reaching ridiculous and unsustainable levels-remember the claims of $200/barrel oil, $20/gallon gas, etc in the summer of 2008?-and I'm instantly turned off. Once these kinds of stories and claims start appearing it's a pretty good sign that the end of the asset bubble is nearing and it's almost time for the next big market collapse, the one that we'll be told "was completely unexpected, no one could have possibly seen this happening to the market". Right now is probably a good time to start cashing out of gold.