Some stocks have made new highs although the semiconductor stocks and some other stocks have languished. Going forward, investors should look at stocks that have languished or are very depressed. Since you are talking so positively about stocks, let me just point out to you that no stock market in the world has outperformed gold and silver. This year gold is up 28% and silver 53%. So instead of talking and telling me that stocks are doing so well, you should be pointing out that gold and silver have done much better than any equities.
Let me point out some differences and similarities. In 1999 and 2002 and 2003, commodities had been in a bear market essentially since the 70s and in the case of precious metals, since 1980.
In other words a 20-year bear market. Now we were in the bull market until 2008 for oil and for gold and silver until 2011 and for agricultural commodities a little bit differently. But basically after 2011, commodities did not perform well. So we have been in a bear market until in the case of precious metals since December 2015.
After 2015 gold and silver have done well but they just made the new highs in the case of gold and in the case of silver, it has not made a new high yet. So I can say precious metals are relatively inexpensive.
What is really very depressed are agricultural commodities and industrial commodities. Lumber for example is some kind of an industrial commodity and that has gone ballistic recently. It has got up a lot but to answer your general question, if the Federal Reserve and other central banks are printing money, the value of money will diminish and that is not difficult to see.
- Source, Marc Faber via Economic Times
