Faber advices a diversified portfolio of currencies, real estate, bonds, gold and stocks... A meltdown in one asset class will be ofset by a rise in the other.
Actually he's been saying that since 2000. In the early 80s he was extremely bullish when everyone had totally lost hope in stocks. He was dead wrong about the big stock market recovery in 2003, though. I'm not a believer in predicting anything, but when new world records have been set for the most expensive painting and highest skyscraper and stocks have spent 4 years moving sharply up on decreasing volume, what do you think will happen?
One day it will all come down but the Dow might surge to 30k first why not... When the markets dropped to their lows in 2009 predicting they would be where they are today in 2012 you would have been called an idiot as well. Diversification remains key I guess and if you want to make a big bet in one direction for one asset class good luck...
Making a big bet on trendfollowing is always a good idea because the best systems have statistically limited downside. However, the "downside" can be lengthy. Drawdown size is guaranteed but duration isn't! You need to make a big bet on PATIENCE.