SWITZERLAND – Noted “contrarian” investment guru Marc Faber says he would advise Swiss pension funds to move assets out of the US and into Asia.

“Families and pension funds here should have more assets in Asia than America because there is a shift of wealth and Asian currencies are strengthening against the US dollar,” he was quoted as saying in an interview with Swissinfo.

Faber, known as ‘Dr Doom’, said he would allocate at least 50% of client money in Asia and move it away from the US.

Faber gained prominence for predicting the 1987 Wall Street crash, the bursting of the Japanese bubble in 1990 and the financial crises of late 1990s, Swissinfo said.

The Thailand-based analyst is the author of the ‘Gloom Boom & Doom Report’.

Faber said the Federal Reserve is printing dollars to finance interest payments on US foreign debt. He said the Fed has “created bubbles all over the place that could lead to one volcanic eruption after the other”.

“The end result is that you usually have to implement financial reforms that lead to a big time deflationary bust.”

“To summarize, the higher the S&P 500 goes the more the US dollar will lose its value against gold and foreign currencies,” Faber wrote recently.

“In our opinion, the underperformance of US assets against foreign assets and precious metals, which began in 2002, will continue for as far as the eye can see.”

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