, Marc Faber Blog

Tuesday, July 17, 2018

Marc Faber: I'd Rather Invest In Asian Over Western Countries


Marc Faber gives his up to date investment advice and discusses the current markets he is interested in most. Overall, he sees Asian markets as a safer place for your money, over Western markets.




Friday, July 13, 2018

India is Doing Well and Will Continue to Do Well

"The rupee will be at these levels, maybe a rupee here or there. I don’t see rupee going to 75-76 to the dollar and there is no reason why it should. We have $400 billion of reserves and we are the most investible country. 

We have never had any defaults, our track record is tremendous compared to other emerging markets and our levels of debt are nothing as compared to China. So on all those parameters, I think India is doing well and will do well.

Always remember, Marc Faber, one of the gurus of emerging markets, he always said one thing, the locals know best."

- Source, CNBC

Tuesday, July 10, 2018

Experts think this trade war will be a fizzer. I hope this courageous guess is right

One of the staggering developments from the mad money world of stock markets is that US stocks rose overnight, with the Dow Jones index up over 180 points, as the deadline to President Trump’s trade war looms today. And what’s even more surprising is that some professionals reckon the market has priced in the effects of a trade war!

Gee I hope they’re right, but I don’t know how I or anyone could really test that.

This confidence that market experts know what lies ahead was captured by this from Jeremy Klein, chief market strategist at FBN Securities: “Any news we get on trade in the short term will be neutral or good,” he said. “We already know all the bad news that's out there on this issue.” (CNBC)

What he’s saying is that experts on the significant companies affected by a tit-for-tat trade war have worked out the profit effects of tariffs and then changed their valuation on that company. But those calculations operate off assumptions that might end up being wrong!

This is how the trade war should begin, with a U.S. Trade Representative statement saying tariffs on $34 billion of Chinese goods will take effect at 12:01 a.m. in Washington. Then China will return fire immediately. The assumption is that China will hit back with equal force. But what if they don’t, instead hitting harder than expected and on industries that were not expected to be affected?

All’s fair in love and war. And you can’t expect that a trade war will be fought out following some gentlemanly rules of engagement. Mind you, I hope it is, and I also hope the market experts have calculated the effects accurately. But I always argue that hope is not a strategy upon which you can build wealth in the stock market!

What worries me about this complacency on the trade war is that it comes when the doomsday drones are ganging up to ramp their warnings about an imminent recession and stock market sell off.

You shouldn’t be surprised about this, as since the end of the GFC this mob has tipped a Great Depression, countless market crashes and some have even had the Dow Jones plummeting below 10,000 while it’s now over 24,300!

Donald Trump has been seen as the trigger, with this one from Bloomberg showing how the negative nervous Nellies have been scaring us for some time: "Citigroup: A Trump Victory in November Could Cause a Global Recession!" (Bloomberg Financial News headline, August 2016)

And then this one: "A President Trump Could Destroy the World Economy!” (Washington Post editorial, October 2016).

Then there have been the likes of Harry Dent and Marc Faber who have been tipping a market Armageddon for at least three years, probably longer. These guys will get it right one day, after being wrong for a long time. And this trade war could be the trigger for them being free to boast about their insights.

All this comes at a time when investor surveys show that those playing the stock market are losing confidence. And some well-known fund managers have expressed their concerns about being long stocks, with the likes of Bridgewater Associates’ Ray Dalio saying he’s getting out of financial assets.

“It’s a classical late cycle story. So, when I was here last time, I said we were long and nervous. We are no longer long, we are increasingly nervous about this,” Roelof Salomons, chief strategist at Kempen Capital Management, told CNBC’s “Squawk Box Europe” on Thursday.

A late cycle represents an economy that has been growing, but is poised to fall into a recession, amid rising interest rates, lower profit margins and other negative economic headwinds.

And a trade war could be a cyclone, while the experts are treating it more like a zephyr. I’m gambling that these guys and their assessments are right because I think the current economic and corporate profitability stories are so strong. But I know I’m gambling.

If you can’t afford to gamble and see stock prices slide, then you might have to play it safer than me. But let’s all pray that this trade war doesn’t prove some Trump-haters right.

- Source, Switzer



Friday, July 6, 2018

Marc Faber and Nomi Prins - The Real Danger


Dr. Marc Faber was born in Zurich, Switzerland and obtained a PhD in Economics at the University of Zurich. Between 1970 and 1978, Dr. Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In 1990, he set up his own business, Marc Faber Limited which acts as an investment advisor and fund manager. 

Dr. Faber publishes a widely read monthly investment newsletter, “The Gloom Boom & Doom Report,” which highlights unusual investment opportunities, and is the author of several books including Tomorrow’s Gold: Asia’s age of discovery which was a best seller on Amazon. Dr. Faber is known for his “contrarian” investment approach and charismatic personality. He became infamous after calling the 1987 crash in US equities. 

Nomi Prins is an American author, journalist, and Senior Fellow at Demos. She has worked as a managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as having worked as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank. 

Prins is known for her books All the Presidents’ Bankers: The Hidden Alliances that Drive American Power and Collusion: How Central Bankers Rigged the World.

- Source, Old Radio



Wednesday, June 27, 2018

Marc Faber: Stocks, Gold, Crypto, Petroyuan, New Silk Road and World War


Renown Swiss investor and publisher of "The Gloom, Boom and Doom Report" Dr. Marc Faber discusses the global markets, housing and bond bubbles, central bank manipulation, gold, Trump, the petroyuan, the New Silk Road and what a potential conflict between the U.S. and China might look like as old empires die and new ones are born.


Friday, June 22, 2018

The party will end when you least expect it...


The U.S. stock market's latest run to all-time highs could be giving investors a false sense of security.

Market watcher Marc Faber, often hailed as the original "Dr. Doom," is not backing down from his long-held correction warning — even though nothing has materialized.

"You don't see, and I don't see. And, nobody sees. That's why people keep buying stocks. And yet, something will happen one day," the publisher of "The Gloom, Boom & Doom Report" said Tuesday on CNBC's "Futures Now."

Faber, who's in his 70s, is convinced another financial crisis like 2008will happen in his lifetime and it'll come when Wall Street least expects it. He predicted in late June that stocks will fall 40 percent.

He said several scenarios could trigger a deep correction.

"I think it may very well come from a credit event. Or, it may come from the disclosure of a major fraud. Or, it may come because interest rates start to go up," he said.

For now, it appears the rally isn't cracking. The S&P 500 has had 36 record closes this year. The Dow has done even better.

"In 2009 when stocks bottomed out, I can tell you that not many people saw why stocks would go up," Faber said. "Now it's the opposite. The sky is clear. Corporate profits have been expanding — they're good. Interest rates are low, but valuations are very high."


- Source, CNBC

Monday, June 18, 2018

Nothing Exempt With Dr. Marc Faber

Summary

My co-host and I interview Dr. Marc Faber to discuss his views on the global economy, emerging markets, and the trade war.

An underlooked risk Marc mentions lies in the voting patterns of milennials.

Marc also tells us what his biggest trading mistake was and his unusual work schedule.

Marc Faber joins us as a special guest on this show, and it makes for a great conversation on markets, the economy, why the rent is too high in California, his advice for milennials, and his unusual sleep schedule. We also discuss the US-China trade negotiations, its impact on other emerging market economies, and what catalysts could possibly cause the market momentum to shift directions.

Links to Show:

Podcast: Play in new window | Download | iTunes

For those unfamiliar with his work, Marc writes great newsletter the Gloom Boom & Doom Report which can be found on http://gloomboomdoom.com


- Source, Seeking Alpha

Friday, June 1, 2018

Marc Faber: Countries Unwise to Let Antagonistic US Hold Their Gold


Marc Faber of The Gloom, Boom and Doom Report has some alarming things to say about how America’s foreign policies may have disastrous implications for the U.S. and global economies, and for the dollar. 

He also weighs in on which asset class, crypto-currencies or precious metals, will ultimately will be the major benefactor of all of the pending geopolitical unrest. Don’t miss a tremendous interview with Dr Doom, Marc Faber, coming up after this week’s market update.


Monday, May 28, 2018

Marc Faber: The Crypto Craze is Very Concerning


Marc Faber says the U.S. Dollar’s strength will not last long. “The last thing the U.S. administration wants today is to have a strong Dollar.” 

Right now, investors are geared towards equities and cryptocurrencies. However, Faber expects within a few years investors will turn towards gold and silver. Faber does not have faith in most cryptocurrencies. 

While he says blockchain technology is here to stay, he thinks the vast majority of cryptocurrencies will fail.


Wednesday, May 23, 2018

Dr. Marc Faber: The Fed Will Reverse QT In Less Than 12 Months


In this wide ranging interview, Jason asks Marc about asset price volatility, whether the stock market is topping, central bank balance sheets and whether they can be meaningfully reduced, the credit bubble in China, the US vs China trade war, and the popularity of crypto currencies in Asia.


Thursday, May 17, 2018

Marc Faber on the China Trade War, the Japan Trap and Why the World is More Vulnerable Than Ever

With global markets struggling for direction after a rocky start to the year, Dr Doom has been conspicuously absent from the conversation. Investment adviser Marc Faber, 72, who adopted the nickname in 1987 after a newspaper column highlighted his contrarian outlook on markets, has had a quiet six months.

Faber – a once regular guest on business news shows such as CNBC’s Squawk Box and Bloomberg Television – has faded from view since the publication of his October newsletter The Gloom, Boom & Doom Report for comments that were condemned as racist. This included a passage where Faber used offensive racial references in laying out a bleak picture for the US if its early immigration flows had been from Africa rather than Europe. He has since been dropped from the booking lists for programmes at Fox News and CNBC, according to Reuters.


At the time, Faber told Canada’s Global & Mail he stood by the remarks, saying in an email exchange that he did not regret writing the passage and that he had a free right to express his views.

When This Week in Asia spoke to Faber at his suite at the Grand Hyatt in Hong Kong this year, he sounded resigned to the loss of his appearances on business television.

“Everything in life and the universe has a timeline, it is transient. In other words, what you have today, you may not have tomorrow,” Faber said.

Known for a keen interest in history, and the works of innovators such as Russian “wave theory” economist Nikolai Kondratiev, Faber has slipped from the public spotlight just as global markets have entered a period of heightened volatility...