Wednesday, October 30, 2013

Janet Yellen to Run the Federal Reserve

Marc Faber discusses Janet Yellen running the Federal Reserve. According to Marc Faber, "The FED has boxed itself into a corner".

- Source, Bloomberg:

Monday, October 28, 2013

Hold Physical Gold

I don’t know what the end game will be, and whether we’ll still be alive or whether we’ll be in wars or in revolutions as the worst. That’s why I want to hold some physical gold. There’s no point to hold physical gold somewhere in the sky. I would hold some physical gold in my proximity. In other words, I own some in Thailand and some in Hong Kong. I still have too much in Europe, but over time, I will move it to Asia.

- Source, Sprott Money Ask the Expert:

Saturday, October 26, 2013

Government is Wasting Money, No Safe Haven Left

Swiss investor Marc Faber, publisher of the Gloom Boom & Doom Report, speaks to Bloomberg's Tom Keene and Sara Eisen about where to invest amid market uncertainty.

- Source, Bloomberg:

Monday, October 21, 2013

Chinese Growth May Slow to 4%

Marc Faber, Editor of the Gloom, Boom and Doom report explains why Chinese growth could slow down to a maximum of 4 percent. He also thinks gold, silver and Japanese equities are inexpensive.

- Marc Faber via CNBC:

Saturday, October 19, 2013

Where Gold is Heading

"When I look at the market action today, I would like to see the next few days, because it may be a one-day event. The markets are overbought. The Feds have already lost control of the bond market. The question is when will it lose control of the stock market. So, I'm a little bit apprehensive. I would like to wait a few days to see how the markets react after the initial reaction."

- Marc Faber via Bloomberg News

Thursday, October 17, 2013

This WILL End Badly

I'm not thinking. I'm convinced. It will end very badly. It doesn't mean it has to be tomorrow, you understand. I'm a car mechanic and I tell you, “Look, your car has several problems.” In a week’s time, you’re telling me, “Look, I've been driving and it still works perfectly fine.” The car may still work for another year, or two years, or three years, and one day, you have a crash. And then, you will think back, “Maybe back then I should have repaired my car.”

- Source, Marc Faber via Sprott Money:

Tuesday, October 15, 2013

China is Encouraging Gold Ownership

I wouldn't say that I would trust them much more. I don’t trust any government, period. But if there are significant problems, I think they would come from over-indexness. In other words, the debts are too burdensome for the system, and then it leads to all kinds of symptoms.

In other words, if you can’t pay your debts, you may print money, or you default, or you increase taxation, or you take things away from the well-to-do people, the evil people that make so much money. Well, the Federal Reserve enables them to make so much money. That is a key difference. They didn't abuse the system; they just took advantage of a situation of money printing so their wealth increased more than the wealth of the middle class and the lower classes.

In the Western world, they’ll go after these well-to-do people and people that own gold. In Asia, I'm not so sure this will happen because Asia is increasingly coming under the umbrella, our own umbrella of China. The Chinese government has actually encouraged people to accumulate gold, and themselves, they are accumulating gold.

- Source, Marc Faber via Sprott Money:

Sunday, October 13, 2013

The State is Getting More Bloated

Q: The turnaround in interest rates in the United States has failed, the Fed continues to print money. Is that good for stocks?

A: The Fed operates in 20 years a policy of monetary expansion.After the collapse of LTCM in 1997, after the collapse of the Nasdaq and after the real estate crisis, interest rates were kept artificially low - at virtually zero percent today. In March 2009 the U.S. stock index S & P 500 reached its nadir with 670 points. Now we are at 1700 points - a tripling! The artificially low interest rates and bond purchases have reduced the prices of stocks and real estate driven up. But the economic effect was relatively small.Milton Friedman wrote in "Capitalism and Freedom": The problem with government programs, they can always be started due to an emergency, but not abolished, when the emergency is over.Thus, the state is getting more bloated. For the Fed, it is becoming increasingly difficult to end their policy. And if they still do it one day, what will happen to the stock market?

Q: Which markets are still interesting because for stock investments?

A: If you press me 100 million euro in the hand and say that you have to invest in stocks, then I would probably select emerging markets, which has dropped so dramatically lately. Malaysia, Thailand, Hong Kong, Singapore - there are plenty of stocks that have a dividend yield of five percent. That's not huge, but still signaled that the cash flow of the company is okay. The Vietnamese market is interesting. Japan was not thrilled me, but the Nikkei could run better than other markets.

Q: Sounds underwhelming.

A: We are in a sideways market. This was back in the seventies when I started my career like that. Nevertheless, there are of course opportunities. Some industries developed tremendously in this sideways market. Did you have gold or energy stocks, you were rich.

- Marc Faber via Business Week:

Friday, October 11, 2013

Gold Bullion as Insurance Against Mischief

Business Week: Mr. Faber, you have to buy gold?

Faber: Yes. Owning physical gold is for me personally an insurance against mischief, driving the governments. In the worst-case scenario ...

With state bankruptcies ... or hyperinflation ...

Governments ... will not say: Oh, we have made a mistake. You will not find culprit.

And that will be the wealthy?

I do not think that the individuals' assets remain untouched.

Gold as an insurance against crises, this is the one. What if I want to speculate?

As an investor, you can make more money with gold mining stocks. Were virtually destroyed the last price drop and are now favourable to have.

- Source, Marc Faber via Business Week:

Wednesday, October 9, 2013

Business Talk with Marc Faber

Marc Faber Full Interview - Business Talk Interview Thai TV - September 20, 2013.

- Souce, Marc Faber via Thai TV

Thursday, October 3, 2013

The Endgame Is A Total Collapse - But From A Higher Diving Board

With rumors this evening of the White House calling around for support for Yellen, Marc Faber's comments today during a Bloomberg TV interview are even more prescient. Fearing that Janet Yellen "would make Bernanke look like a hawk," Faber explains that he is not entirely surprised by today's no-taper news since he believes we are now in QE-unlimited and the people at the Fed "never worked a single-day in the business of ordinary people," adding that "they don't understand that if you print money, it benefits basically a handful of people." Following today's action, Faber is waiting to seeing if there is any follow-through but notes that "Feds have already lost control of the bond market. The question is when will it lose control of the stock market." The Fed, he warns, has boxed themselves in and "the endgame is a total collapse, but from a higher diving board."

- As seen on Zero Hedge:

Tuesday, October 1, 2013

Marc Faber on Janet Yellen

"She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don't believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let's tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence."

- Source, Marc Faber via a recent Bloomberg Interview