The world’s central bankers will end up behind the market equivalent of the woodshed after flooding the world with cheap money, veteran investor Marc Faber told CNBC on Thursday.
“When you print money, the money doesn’t flow evenly into an economy. It flows to some people or to sectors first, and in this case, it flowed into equities, and until about five months ago, bonds,” Faber said. “I believe that markets will punish central banks at some stage through an accident.”
The bond market could collapse, Faber said, adding that bonds have been weak considering the scope of the U.S. Federal Reserve’s quantitative easing program. The other possibility is that stocks could end up in a bubble.
Faber, known for his “contrarian” investment approach and often bearish views on the market, told CNBC he’s gearing up for a market crash that will provide plenty of opportunity for bargain hunting.