INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor and publisher said global stocks may rebound following the fed's decision to cut US interest rates to near zero percent.

He still likes gold, commodities and believes oil is becoming attarctive. He expects a tough 2009 with prospects for recovery being pushed back as far as ten years.

Speaking to Bloomberg TV from Zurich Faber said: “Markets may rebound somewhat more,...I would look at it as a trading opportunity.”

“It’s less about investing than trading,” the money manager said. “The only prediction I have high confidence in is that we’ll have a lot of volatility.”

“If you print money like there is no tomorrow, the S&P will go up,” he said.

The rally will be capped and stocks will eventually “drift” lower because valuations are still too high and earnings will “go down and then stay depressed for quite some time” as the global economy slides into a recession, he said.

Gold is still a good investment after rising about 20% since mid-November, and oil is “becoming attractive” after prices plunged 71% from a record US$147.27 a barrel in July, Faber said.

In an interview with India' CNBC TV18, Faber reiterated his positive views on commodities. "Whenever the recovery comes because commodity prices have fallen this much, there is now very little exploration carried out."

When the global economy recovers, the demand will pick up, and the supplies won’t pick up a lot, and so the mining companies will then do very well and commodity prices will again rebound very strongly.

Predicting a very difficult 2009 with recovery hopes being pushed back as far as five to ten years, Faber said: "At some point when the recovery comes, it could be in two years, it could be in five years, it could be in ten years. But whenever it comes there will be some pressure on prices to go up."

"They’ll keep interest rates like they kept it between 2004 and 2007 at a relatively low level compared to economic growth and inflation. That should be then very inflationary."

Faber blames the US squarely for the current crisis. "The Fed in the US has done a totally disastrous job at steering the economy and I’d like to add that market based solutions are the best and interventions create new problems and unintended consequences."

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