Monday, August 19, 2019

Marc Faber: Financial Turmoil Ahead, Gold is My Largest Single Holding


Marc discusses how various modern economic theories are already being tested as the world now has 15 trillion in negative-yielding bonds. He feels that Modern Monetary Theory would result in an overall loss of freedoms as people would become increasingly dependent on government. 

Gold is again rising but how high it will go, Marc, does not know but to him, it seems inexpensive when compared to negatively yielding bonds. Gold should stay above 1400 and investors should hold it as insurance in varying amounts depending on their confidence in the financial system.

- Source, Palisade Radio

Tuesday, August 6, 2019

Marc Faber on Higher Education & Protecting Yourself in an Economic Collapse


Marc Faber is an economic authority on global macroeconomics, capital markets, and investment and the Editor & Publisher of "The Gloom Boom & Doom Report". 

He spoke with The Prospect Group about university style formal education, the coming economic collapse, and the options people to preserve their wealth.

Saturday, July 27, 2019

The Billionaire They Call Dr. Doom


My guest in this interview is Dr Marc Faber. Dr. Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. 

He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. 

In June 1990, he set up his own business, MARC FABER LIMITED which acts as an investment advisor and fund manager.

Monday, July 22, 2019

Marc Faber Discusses What’s Going on in Our Economy and Markets


Jason Hartman talks with Marc Faber, editor at Gloom, Boom, Doom, about what’s going on in our economy with the massive asset inflation that’s hit in the past few years. 

The two examine what central banks will have to do in order to deal with the looming shortages and what investments can buck that trend when it arises.

Wednesday, July 17, 2019

Marc Faber: Global Economy is on the Cusp of a Recession


  • According to Dr. Faber, the global economy is on the cusp of a recession. Investors are advised to batten down the hatches.
  • A global / domestic economic maelstrom of epic proportions where paper assets denominated in the reserve currency lose up to 80% is possible.
  • Few asset classes will endure the economic storm ahead, however, safe havens include gold, silver, PMs shares and cryptocurrencies.
  • Despite the remarkable increases in modern productivity given quantum leaps in access to technology and information, living standards are sagging.
  • Incomes have not matched increases in the cost of living.
  • The duo concur that the erosion of the standard of living is directly correlated to profligate money expansion, which acts as a reverse “Invisible Hand.”
  • Both the guest/host advocate diversification of asset classes, increasing the weighting of safe haven, hard money assets in the coming years to shield wealth from potential economic volatility.
- Source, Gold Seek Radio

Monday, July 8, 2019

Politicians Like to Blame Everyone Else For the Problems They Created

Referring to China, Kyle Bass claimed at a recent investment conference that, “Right now, there is no trust and no rule of law. The Chinese government lies, cheats, and steals as a national ideology.”

I heard that the audience rewarded his candid statements with applause.

Blaming the Chinese for everything appeals to the Democrats and the Republicans alike, and that is what counts for President Trump ahead of the 2020 elections. In fact, I find the applause following Bass' accusations deeply disturbing given the relatively high social standing and knowledge of the conference attendees. It also reminds me of so many other occasions in history when leaders blamed other people (usually minority groups and foreigners, or whosoever is convenient at the time) for their own shortcomings and failures.

Not long ago, Elaine Chao (the current US Secretary of Transportation) opined that, "Smoot and Hawley ginned up the Tariff Act of 1930 to get America back to work after the Stock Market Crash of ’29. Instead, it destroyed trade so effectively that by 1932, American exports to Europe were just a third of what they had been in 1929. World trade fell two-thirds as other nations retaliated. Jobs evaporated."

I think it is fair to say that the Smoot–Hawley Tariff did not cause the depression (there were numerous other factors at play), but it certainly accelerated the downturn and prolonged the global economic slump as global trade collapsed. Currently, the global economy (including the US) is already weakening badly (many sectors are already in recession) and the trade war will aggravate the economic downturn. US economic weakness is indicated by strengthening US Treasuries. It is also confirmed by the decline in oil and lumber prices. Furthermore, the US Markit manufacturing PMI just dropped by 2 points to a near-recession 50.6 level.

In general, I believe that Wall Street strategists and economists grossly underestimate the downside risk of equities. I concede that the US stock market is becoming near-term oversold and, therefore, could rebound in June and July (traditional summer rally). The US stock market is, however, far from oversold from a longer-term perspective. My advice: Sell the rallies and reduce equity positions.

Finally, remember regarding the constant China bashing that, as Daniel Kahneman observed, “A reliable way to make people believe in falsehoods is frequent repetition, because familiarity is not easily distinguished from truth. Authoritarian institutions and marketers have always known this fact.”

- Source, Marc Faber

Thursday, July 4, 2019

Marc Faber: Massive Asset Inflation, Central Banks Confusion


Jason Hartman talks with Marc Faber, editor at Gloom, Boom & Doom Report, about what's going on in our economy with the massive asset inflation that's hit in the past few years. The two examine what central banks will have to do in order to deal with the looming shortages and what investments can buck that trend when it arises.

Saturday, June 29, 2019

Marc Faber on US China Trade War, the Japan Trap


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.

Faber was widely considered media gold at times of crisis for his tendency to speak candidly, tapping a pragmatism that seems tied to his upbringing in Zurich.

Faber also has a solid record in calling the market correctly. Among Barron’s Roundtable members in 2002 to 2011, he scored the second highest annualised return of 23.4 per cent among the eight annual stock-pickers, according to Pundit Tracker.

In February, the current market turmoil had not set in, yet Faber foresaw what was to become a major turning point for the markets, spelling out a gloomy forecast just days before the Dow Jones Industrials would record its largest single-day point decline.

“I don’t think markets will be very attractive this year and I want to own some cash,” Faber said at the time.

On May 1 he wrote in a monthly commentary that January’s high of 2,872 for the S&P 500 was a “major top”.

He advised investors to consider US government bonds, even as he cautioned in the long term that the US dollar was a “doomed currency”.

“My view is that a cash portfolio is safer with Treasuries than with banks,” Faber said.

In April, Faber told This Week in Asia he still favoured US Treasuries at the current yield on the 10-year near 2.9 per cent.

“The whole investment community, with a few exceptions, is negative on Treasuries. I have a different view,” Faber said. He holds about 30 per cent of his own investible assets in US government debt...

Saturday, June 22, 2019

Faber: Can’t See Another Bull Market in My Lifetime

Emerging market stocks will outperform U.S. equities when another bull market comes, noted bear Marc Faber contended Tuesday. But Faber sees one problem — he believes markets will not enjoy another bull run in his lifetime.

Still, the Gloom, Boom & Doom Report publisher sees a potential recovery for some emerging market economies, particularly Russia and Brazil, which have endured a recent slowdown.


“There are some that are extremely depressed that could have large rebound potential,” Faber said during a Tuesday evening panel discussion at the ETF.com Inside ETFs conference in Hollywood, Florida.

Stock prices have broadly fallen worldwide this year, with lower commodities prices and fears of a global slowdown contributing to investor concerns. Economies dependent on natural resources have been hit particularly hard. Brazil and Russia, once stars of the emerging world, have been damaged by oil as well as political issues.

While Faber has made a name on pessimism, he contended that bright spots for potential growth still exist in emerging markets. He pointed to Cambodia and Vietnam, among other Asian economies.

“I wouldn’t take an across-the-board negative view about emerging economies,” Faber said.

Another investor on the panel Tuesday stressed that market watchers should not package all emerging economies into one basket. Marten Hoekstra, CEO of Emerging Global Advisors, is particularly optimistic about growth prospects for India, the world’s second-most populous country.

His funds have attempted to benefit from consumer demand there through consumer discretionary and staple stocks, as well as health care, telecom and utilities companies. While Emerging Global’s India Consumer ETF (INCO) has fallen this year, Hoekstra touted its prospects for long-term investors as consumer spending power grows in India.

He stressed that the Indian economy does not rely on oil or natural resources, which reduces its downside risk if the commodities crunch persists.

“If you’re generally negative on oil, you’re probably bullish on India,” Hoekstra said.

Mark Yusko, founder and CEO of Morgan Creek Capital Management, said during his annual “bold predictions” talk on Monday that India had attracted his attention and would perform better than most emerging economies.

Despite Hoekstra’s optimism, widely followed commodities commentator Dennis Gartman, who was also on the panel Tuesday, said that he had no immediate plans to invest in emerging market economies.

“It is the continued reliance upon commodity prices that causes me a great deal of concern,” he said.

Gartman contended that corruption in some emerging market governments reduces the safety of investing in those locales.

- Source, CNBC

Wednesday, June 12, 2019

Marc Faber: The Coming Pension Crisis And Its Subsequent Fallout


Returning SBTV guest Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report”, warns about the under-funding in public and private pensions. 

Will there be pitchforks when pensioners realize there is no money available for their retirement?

- Source, SBTV