why marc faber is cashed up

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    FUND VIEW-Why "Dr Doom" is cashed up and fearful
    Tue September 23, 2003 07:05 AM ET
    By Paul Caine

    HONG KONG, Sept 23 (Reuters) - Buy Asia and short the United States, says Dr. Marc Faber, the contrarian author of The Gloom, Boom & Doom Report.

    But at the moment, the fund manager better known as "Dr Doom" is personally holding a lot of euros and says investors should be very afraid of a severe correction in U.S. stocks.

    "I would be long Asian stocks and short the U.S. I personally hold a lot of cash at the moment, (with) a preference for euro-denominated cash," Faber told Reuters.

    Faber said Asian stocks could gain 50 percent over the next five years, but is fearful a fall on Wall Street could derail regional markets in the short-term.

    "If you bought today a basket of say 50 or 20 stocks in Asia, I think that within the next five years the chance you will be able to sell them with say a 50 percent capital gain is quite high," said Faber.

    "I don't think you could say that about the Dow."

    But after recently visiting major hedge funds in the U.S., Faber, who also acts as a fund manager and investment advisor, said he was disturbed by the "unanimous bullish sentiment" on U.S. economic growth and stocks.

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