, Marc Faber Blog

Friday, March 22, 2019

Marc Faber: Huge Asset Bubble Will Be Deflated

Legendary contrarian investor Dr. Marc Faber warns, “When I started to work in 1970 on Wall Street, the stock market capitalization of the U.S. as a percentage of GDP was between 25% and 30%. 

Now, the stock market capitalization alone is 150% of GDP, and when you add the bonds to it, we are at 300%. It’s a huge asset bubble compared to the real economy. 

I think no matter what they do, this asset bubble will be deflated, and it will be very painful. 

The asset holders are the powerful ones here, and they don’t want it deflated.

The question is would it have been better economically to go into the hospital in 2008/2009 and clean up the system rather than to essentially inject the sick patient with more opioids to keep him alive? 

It’s going to get much worse the next time it happens.”

- Source, USA Watchdog

Thursday, March 14, 2019

Marc Faber on the Fed, Stocks, and GOLD

Everyone wants to know whether this stock market sell-off is a buying opportunity or the first move in a long-term downtrend. 

Swiss investor Marc Faber joins Silver Doctors with a word of caution. 

Faber doubts the majority of stocks will make new highs. In the next two years, many investors will not make money in equities, he says. 

The Fed will likely try to prop up the market through more accommodative monetary policy. 

He sees a possible rolling out of quantitative easing and a halt to rate raising. At that point, the Dollar will weaken.

Friday, February 8, 2019

Marc Faber: I Am My Own Central Banker

Everyone always says, I want to buy low and I want to sell high. So I think for me, of course I own a lot of gold, and I need to buy more to keep asset allocation between 25% in Real Estate, 25% in equities, 25% cash and bonds, and 25% gold. 

I need to buy more. So for me this is a very happy event. I don’t like to buy gold at $1,900 like in 2011. I like to buy it here or lower.

Gold Broker: Do you think it will break under $1,000 like some people say?

Marc Faber: Look. The forecasting record of people is horrible, in particular, the forecasting record of the Federal Reserve. So, I don’t know, maybe it will go below $1,000 but my sense is that it will not stay below $1,000. 

I would use the current weakness as a buying opportunity. I’m telling everybody, you as an investor, and me as an investor, we cannot trust the government.

I am my own central banker. I keep my own physical gold. I do not trust anyone of these (unprintable word).

- Source, Money Talks

Friday, February 1, 2019

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.

- Source, Geopolitics & Empire

Tuesday, January 22, 2019

Marc Faber Speaks on the Dreary State of US stocks

"The slowdown in US economy seen since the start of 2018 and it is visible in the performance of US bonds", says Marc Faber, Editor & Publisher of "The Gloom, Boom & Doom Report". 

He adds weak oil prices, signal economic slowdown.

- Source, ET Now

Wednesday, January 16, 2019

Dr Doom Issues a Stark Warning to All Investors

What many people missed and misunderstood in the early 1980s we had a major turning point. We went from consumer price inflation to asset inflation.

‘The first to rally were bonds after September 81. The second were stocks, August 82, and then real estate prices went up, art prices went up and so forth. But real assets under performed financial assets.

‘Now you look back at the period, 81, that is now more than 30 years ago. 2017-2018 we had in the world some consumer price inflation, especially in services, like insurance, but the big inflation was in assets. Asset prices kept on going up, and each time they came down there were more monetary injections by central banks.’

‘I think the world is conditioned that this asset inflation will continue. But I think there is a probability — that is very high — that the way consumer price inflation peaked out, in 1980, we may have a peak now in asset inflation. And it is conceivable to me that, for a very long time, like the Japanese market after 89 that peaked out at close to 40,000 and we are now at around 22,000, you know this is almost 30 years that for a long time stocks will not go up.

‘That is a possibility, and that also real estate will not be a very good investment […]. These are things that I think when you ask me if you ask me at the future what do you see. I think there is a real danger that this colossal asset inflation we have that created a lot of wealth inequality, that this is coming to an end.’

Friday, January 11, 2019

Why Marc Faber is looking to invest in badly hurt Indian stocks

If we look at the markets around the world, they have always been driven very much by the S&P500. In other words when S&P500 goes up, other markets go up some more and some less. Like in 2017, all the Asian markets grossly outperformed the US, and also European markets in 2018 most Asian markets have underperformed the US. I have to say there is an exception, which is India that has performed reasonably well, not that well in the US dollarNSE 2.45 % terms, but in local currency it is at least up for the year.

Since the beginning of the year if you analyse statistics, there was a slowdown in economic activity and in particular after August, business fell off a cliff. I talked to some people in August and they were still very optimistic about the future and in November they wrote that the revenues are 20 per cent below a year ago.

In other words they totally misread the economic slowdown that was going to take place in the second half and this economic slowdown is actually visible in the performance of bonds in the US. If you look at the stock market between October, early November and today, we are down say plus/minus 10 per cent, depending on the index.

Some indices are actually down from the peak by 20 per cent. But in the bond market, the 10-year US treasury has rallied since early November by 10 per cent. I think we will now consolidate and I am just saying that bond market was beginning to recognise the economic slowdown earlier than the stock market.

Monday, January 7, 2019

Asian markets have underperformed US, India remains an exception

Marc Faber, author of the Gloom, Boom & Doom Report , believes the reforms implemented by Prime Minister Narendra Modi are favourable for India. The only concern over Indian equities is their valuations, he told ETNow in an interview.

- Source, ET