Faber: Look Out for Financial Sector Crisis and QE4 (Video)

Marc Faber is one of the few investment advisors who agrees with Peter Schiff that the Federal Reserve is not going to raise interest rates in 2015. Instead, he expects the Fed to launch a new round of quantitative easing. He explained his viewpoint to CNBC earlier this week, and advised investors buy hard assets like precious metals to protect themselves from a collapse of the financial sector.

Highlights from Faber’s interview:

“Yes, I think [the Fed will not raise rates and embark on another round of QE4]. Not only the US Fed – all the central banks are so deep in the mud, that in my view they will continue to essentially buy assets…

“Maybe [this would pump up the stock market again], but not necessarily. One thing I want to tell you. When I look at the whole financial sector, the whole financial industry, including myself and yourself and everybody, I feel like being on the Titanic. We’re fighting about deck chairs – who is performing best, which asset is performing best, and we’re fighting over the best tables in the ballroom. But I think it’s worthwhile to have your own safety boat and ladder that will lead you to your safety boat. I think the problem is that the whole financial system one day will implode…

“I have advised my investors and also on this program that you have to have diversification. You should hold around 25% in stocks, 25% in real estate, and actually today, I just bought a 30-year Treasury bond… I would also hold some commodities: precious metals.”