Tuesday, May 31, 2022

Recession risks rise as central banks move slowly on interest rates, Marc Faber warns

Contrarian investor Marc Faber says central banks have waited too long to act. He believes a recession is inevitable and it will hurt ordinary people.

Wednesday, April 20, 2022

Only people who had a meaningful position in oil and gold, have offset the losses they had elsewhere

Whichever way it is, the war is raging and we are seeing the impact on the markets. Moscow is saying we will cut off gas supply to Europe; America is saying we will take Russian oil out of the global energy mix. This war is really on top of investors’ minds. Till we have clarity on that, is what we are seeing in the markets going to continue?

Well the damage to markets has been done unevenly. If you own Russian stocks, they are next to nothing at the present time. Will they ever be worth anything? Who knows! But collectively, if you look at European markets, they are all down 10-15%. So the damage has been very considerable. 

The only sector that I can say which has really benefited from all this but that is not good economically, especially not for the poor people, is the commodity sector, the agricultural sector and oil and more recently, precious metals and precious metals stocks.

So if you were invested in precious metals, you are partially hedged. I have always argued for the last 30 years that you need to own some gold, silver and platinum as an insurance against the political problems and chaos in the world. 

But if you own only 5% of your assets in gold and 95% of your assets in stocks, the hedge was too small. Only people who had a meaningful position in oil and gold, have offset the losses they had elsewhere.

- Source, Verve Times

Saturday, April 16, 2022

If The Conflict Dissolved Tomorrow, I Would Buy Indian Shares And Not US Stocks: Marc Faber

“One should be in value stocks. The next big upward move in the market even if it is a down move, value will outperform growth,” says Marc Faber, Editor & Publisher, The Gloom, Boom & Doom Report.

We are seeing that war between Russia and Ukraine and the effect it has on the energy market. There’s the new oil shock and that is impacting equity markets. What is your view on that big global trigger?

I think the recent decline has been expected by numerous observers because the economy in the US is not doing particularly well. We have artificially low interest rates in Europe and in the US and in most other countries. 

The rate of inflation in the US is between 6% and 12% depending on the person, depending on the household. And the Federal Reserve is still discussing whether they will increase interest rates by a quarter or a half a percent! In the ‘70s when inflation rates were as high, we had the Fed rate of over 8%. So it shows there is a disconnect between the Federal Reserve and the real economy.

Then we have these geopolitical problems and in every speech I have been giving, in the last few years, I have said that in investments one proviso for success at the present time of relatively high valuations is peace in the world. And now this peace in the world is no longer guaranteed. 

A journalist who is well known in the UK said the conflict in the Ukraine is the most useless conflict we ever had. There is no reason for either side to go to war and this would be essentially my opinion that this war is not about freedom of Ukraine and people or anything, but it is designed by some neocons in the US and some people that are interested in war and Russia that is more belligerent and does not like this NATO expansion.

- Source, Verve Times

Tuesday, March 15, 2022

Marc Faber: The Economy Will Plunge Badly!

Marc Faber joins The Income Generation Show to discuss 5 things you need to do before retiring! 

What’s the deal with annuities? Are they good? Are they bad? Which one is right for you?