Saturday, January 21, 2017

Marc Fabers Investment Predictions for 2017

In general volatility will increase though volatility has been quite high in 2016 . At the beginning of last year, we dropped to 1810 on the S&P and then we closed over 2200. So we had a big move in the market and then we had currency moves that were also very strong. Some currencies went down but others appreciated against the US dollar – bitcoins, the Brazilian Real and the Russian Rouble. It was a year where you could make a lot of money and also lose a lot of money depending on how you were positioned.

For the year, I do not know but for the near future, I have essentially three views. First off all, the US economy is like a supertanker or a sailboat. It is not easy to turn it around and come back to where you have been in terms of prosperity. In general, Mr Trump’s policies will fail to lift economic growth rates significantly.

US stocks, compared to emerging markets or European companies or Japanese stocks, are significantly ahead of themselves. In 2017, emerging markets will outperform the US either by going down less than the US or by going up substantially more than the US. So I would essentially avoid the US and rather invest in emerging economies including India. 

The second view I have is that recently investors have been obsessed with growth in the United States and with interest rates going up because the Fed has said that they would essentially increase the Fed fund rates three times this year but in the US, the treasury bond market is grossly oversold and for the next three months, we can have a rebound in US treasuries. Short-term and long term interest rates in the US are going to ease again in the next three months. You could get the 5% to 10% upside move in US treasuries.

- Source, ET

Sunday, January 15, 2017

Marc Faber: Trump rally may not last long


History shows that the initial bump in markets might not stick around in the longer term, says Marc Faber, editor of The Gloom, Boom & Doom Report.

- Source, CNBC

Thursday, January 12, 2017

Marc Faber Discusses, Is Donald Trump the Next Ronald Regan?

Numerous people have compared victory of Donald Trump to Ronald Regan who became US president in 1980 and started his job in 1981 and they say well there will be a Trump bull market like the Regan bull market in the 80s. 

First of all when Regan got elected the market rallied into November 28 1980 but afterwards it went into bear market for two years until August 1982 and then afterwards I admit it had a huge bull run until 1987, Dow Jones from 800 to 2,700. But the point is that in November 1980 when Regan got elected there was a huge change in leadership. 

A wave from oil and gas which at that time made up to 28 percent of the S&P 500 to other stocks to this inflation beneficiaries and regardless of how you look at the world whether you are positive about Trump, negative or positive about the US dollar regardless of that that we are reaching a point which is also supported by the recent market action where we have a huge change in leadership away from stocks like Facebook, Amazon, Netflix, Google to more basic industries to come out of their related companies.

- Source, Marc Faber via CNBC

Monday, January 9, 2017

Clear indicators of dollar and world market collapse, heres why!


What will happen in 2017? For Economic, Gold, Silver Prices, US & World Economy, Debt, Dollar, Currencies & Stock Market Predictions on Collapse, Crisis and Crash by Top Economists and Investors.


US Fed not expanding asset base; dollar overvalued

Asserting that the central banks in Europe and Japan will keep feeding excess liquidity to the world, Marc Faber believes that the US Fed is not expanding its asset base. While European Central Bank and Bank of Japan are doing so, flows out of Europe and Japan will lead to weakening of the euro and yen and strengthen the dollar, he said. The editor of Gloom Bloom & Doom Report told CNBC-TV18 that contrary to popular opinion that emerging markets have performed poorly in 2016, any market outside the US looks very attractive now especially in terms of valuations. 

Investors are too bullish about the US, negative about emerging markets, and are neglecting Japan and Europe, he said. India is much better placed and has greater potential to grow than Western economies, Faber said. Corporate profits have still room to expand, he added. 

Fundamentally, the dollar is overvalued and valuations in US markets are at historical highs, he said. Any further strengthening of the US dollar will curb the US Federal Reserve’s capability to raise interest rates, Faber said. 

The Fed on Thursday raised rates by 25 basis points and in the past indicated the possibility of three interest rate hikes in 2017. Oil and mining companies, financials and tech figure among his favourite sectors for 2017, he said, adding that he sees a lot of upside potential in agricultural commodities.

- Source, CNBC

Monday, January 2, 2017

I’m Against The Demonetisation Drive In India: Marc Faber


Marc Faber, Editor & Publisher, The Gloom, Boom & Doom Report states that he is against the demonetisation drive in India.


Friday, December 23, 2016

US Fed not expanding asset base; dollar overvalued

Asserting that the central banks in Europe and Japan will keep feeding excess liquidity to the world, Marc Faber believes that the US Fed is not expanding its asset base. While European Central Bank and Bank of Japan are doing so, flows out of Europe and Japan will lead to weakening of the euro and yen and strengthen the dollar, he said. 

The editor of Gloom Bloom & Doom Report told CNBC-TV18 that contrary to popular opinion that emerging markets have performed poorly in 2016, any market outside the US looks very attractive now especially in terms of valuations. 

Investors are too bullish about the US, negative about emerging markets, and are neglecting Japan and Europe, he said. India is much better placed and has greater potential to grow than Western economies, Faber said. Corporate profits have still room to expand, he added. Fundamentally, the dollar is overvalued and valuations in US markets are at historical highs, he said. Any further strengthening of the US dollar will curb the US Federal Reserve’s capability to raise interest rates, Faber said. 

The Fed on Thursday raised rates by 25 basis points and in the past indicated the possibility of three interest rate hikes in 2017. Oil and mining companies, financials and tech figure among his favourite sectors for 2017, he said, adding that he sees a lot of upside potential in agricultural commodities.

Tuesday, December 20, 2016

Marc Faber's Contrarian Trump Strategy: Buy Gold, Emerging Markets



Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” says the savvy investors will know the right moves to make amid the current rally as the stock market continues to bask in Donald Trump’s election victory.

Faber suggested many investments that appear contrarian, including gold and emerging markets. He sees opportunity in some other beaten-down assets, such as the euro and bonds.

However, he warned investors to stay away from assets that have rallied, like the U.S. dollar.

Shrewd investors should seek stocks that are "oversold, and avoid the sectors that are overbought," he told CNBC.


Sunday, November 27, 2016

Marc Faber: A Trump Victory is Much Better for U.S. Assets


Gloom, Boom and Doom Report Editor Marc Faber and WL Ross & Co. Founder Wilbur Ross discuss the election's impact on the markets and economy.


Thursday, November 24, 2016

I don't think big corruption comes from bank notes

Anuj: I remember when I can to Chiang Mai to interview you, you said you would vote for anyone but Hillary Clinton. You would be a happy man today. 

A: Yes, and I still would do the same. 

Latha: But what do you do as a stock picker? This evening would you be looking at buying any of the emerging markets, developed markets? What are you doing with your money today? 

A: I am not interested in today. When I invest money, I am interested in the next 5-10 years and I told you always over the last two years, I would rather invest in India than in the United States, which is an over-valued, over-promoted market. I would also rather invest in other emerging economies and in Europe than in the US. 

Sonia: So, since you mentioned that you would invest in India rather than other economies, I wanted to ask you if you have been following the latest news flow that we have about the clamp down on black money that we had overnight. How much of a positive do you think it could mean in the longer run for India? 

A: It is negative in the longer run. I do not believe the big corruption comes from bank notes. The big corruption is like Hillary Clinton, she carries around suitcases. 

Latha: But do you expect there is going to be any protracted downturn since the markets were not prepared for a Trump victory. Are we going to see protracted, in terms of time period as well, losses in equity markets?

 A: My view is that regardless who would have won, the stock markets would have gone down. But, the market made a high a year ago at 2,134 on May 25, and then we went down and in January of this year, we dropped to 1,810 and then we recovered and made a new high at 2,193 on the Standard and Poor (S&P). If the market drops towards the low of this year, which is 1,810, the Fed will launch quantitative easing (QE)-IV. The Fed will support the stock market. The moment it drops 10-20 percent, they will support the stock market.

- Source, Money Control