Marc Faber is currently in Hong Kong, but he called into Fox Business News to talk about the European downgrades.

The credit downgrades were already discounted by the bonds market in Europe. It is like when a war breaks out: if the market already discounted the war, then when the war finally breaks out the market can actually go up.

The downgrades ultimately represent just a postponement. This postponement essentially involves money printing.

Eventually, you want to be positioned in equities rather than government bonds. You also want to own precious metals, although the gold correction may not be over yet.

As an investor, you don’t want to enter your gold position all at once. Instead, you should buy a bit of gold every month.