Saturday, November 15, 2014

We Have a Bubble in Everything, Everywhere

Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, has been consistent in forewarning about the growing abundance of bubbles in every element of the stock market and global economy. Where are the bubbles? According to Faber, everywhere.

Speaking in an interview with CNBC on Friday, the contrarian investor warned “we have a bubble in everything, everywhere,” soon after the Dow Jones and the S&P 500 ended the day’s trading session at new all-time highs.

Faber, who has been a staunch critic of the so-called economic recovery in the United States and Europe, believes the Federal Reserve’s intense quantitative easing program and near-zero interest rates have inflated stock prices. If the stock market decreases then it could be because of an interest rate hike “not engineered by the Fed” but rather a spike in bond yields.

In addition, the markets will experience a shock once another recession hits the global economy.

“The big surprise will be that the global economy slows down and goes into recession. And that will shock markets,” said Faber, who added that there would be dire straits and a lack of confidence in the economies of the world if governments and central banks can’t recovery even with all of the money pumping by the Fed.

Right now, Faber is more concerned about the rising cost of living for American consumers: “Their cost of living have gone up more than the salary increases, so they’re getting squeezed. So that’s why retailing is not doing particularly well.”

Others worry about bubble environment

Contrarian investors like Faber aren’t the only ones sounding the alarm when it comes to bubbles. There have been a number of mainstream, establishment economists and entities discussing the various bubbles popping up all over the markets.

We reported last week that a group of Deutsche Bank strategists wrote that the international government bond market is facing a bubble because it is already experiencing quite a bit of frothiness. The concern is that the bond market has nowhere else to go to because it’s already in the hands of governments and central banks.

“The worry is that there is nowhere left for this bubble to go given that it is now in the hands of the lenders of last resort (governments and central banks with regulators ensuring other large captive buyers),” the economists wrote. “Although we think this bubble needs to be maintained to ensure the solvency of the current financial system, the best case scenario is that it slowly pops over time via negative real returns for bondholders. The worst-case scenario being future restructuring.”

Fed Chair Janet Yellen, meanwhile, concurred this past summer that stocks are in a bubble, but noted that the U.S. central bank wouldn’t raise rates in order to burst them. Yellen argued that it should be up to financial regulatory bodies to bring about stability to markets rather than monetary policy, though it’s the Fed’s artificial rates and money printing that’s producing bubbles.

In June, Wilbur Ross, CEO of WL Ross, averred that the sovereign debt market bubble will pop within the next two years, citing the 10-year U.S. Treasury yields hitting a record low in 2012.

“I’ve felt for some time that the ultimate bubble, when we look back a few years from now, is going to be sovereign debt, both U.S. and other, because it’s way below any kind of reversion to the mean of interest rates,” Ross told CNBC. “If you look at where the U.S. 10-year had averaged over the 10 preceding years, it’s around 4 percent. If it reverts back to that level at some point, there will be terrible losses in the long-term Treasury market, and those will probably be accentuated in other areas of fixed income.”

Bubbles, bubbles are indeed everywhere.

Thursday, November 13, 2014

Marc Faber Predicts Markets Will Fall Over 30%

Longtime bear Marc Faber is known for his contrarian investment views, which is how he earned the name “Dr. Doom.” Over the last few weeks, Faber has been continuously predicting a “correction” in equity markets of over 30% when talking to financial news channels including CNBC and BNN. Although Faber has also built a reputation as ‘the boy who cried wolf’ in the eyes of many market enthusiasts, the rate at which equity markets are currently selling off makes me wonder if there is some truth in his bold statements.

The S&P/TSX Index is at multi-month lows after losing about 11% in six weeks. This comes as our neighbours south of the border are witnessing their markets wipe out all their gains for 2014.

It does seem scary. But should investors really be afraid? I continue to think not. I’ve said it before, and I’ll say it again: such a selloff in the markets is rather normal, and might I add, healthy. It’s been a while since we’ve seen the markets erase some gains and many traders expected such movements. Add to that seasonal volatility, ebola scares, slowing growth in Japan, and oil price declines and its only natural for investors to get the jitters.

But while Faber sees gloom and doom, Warren Buffett’s motto is to “be fearful when others are greedy and greedy when others are fearful.” And that’s a concept I agree with strongly. After all, it’s hard to disagree with one of the most legendary investors of our time.

Monday, November 10, 2014

Marc Faber on the Hong Kong Protests

“Well basically we have these student demonstrations. In my view it is less about democracy and more about the chief executive of Hong Kong being very unpopular with young people and also with other people in Hong Kong. And it is also a social background in the sense that Hong Kong became very prosperous between 1950 and about 10 years ago. Years in which GDP per capita increased enormously and over the last 10-15 years real in other words inflation adjusted per capita incomes have been decliningI believe the outcome will be some sort of compromise where by the chief executive would probably resign.”

- Marc Faber via Value Walk

Friday, November 7, 2014

The Bigger the Government, The Less Productive the Economy

"As long as governments intervene into the private sector, the free market, and as you know, the U.S. is not yet that bad. But say from 1930 government spending as a percent of the economy has gone from 7.8 percent to now over 41 percent. It compares favorably with France which is now at 57 percent, but the bigger the government is, the less dynamic the economy can be and the less gross there will be. But the governments don’t see that way.”

- Marc Faber via Value Walk

Wednesday, November 5, 2014

I Don't Believe the Global Enconomy is Healing

Well I think it’s quite funny because everywhere you go, up to a little while ago, there was great optimism about this recovering the global economy when in fact Europe is not recovering and in fact it is slowing down. In Asia and in other emerging economies we have a very meaningful slowdown in economic activity. I wouldn’t call all the emerging economies being in recession yet, but it’s just very little growth in present time in real terms and in some cases it has been a downturn, a meaningful downturn, like say in retail sales in Hong Kong or in Singaporeso I don’t believe that the global economy is healing, all that was in the context of massive interventions with fiscal and monetary measures by the authorizes.”

- Source, Marc Faber via Value Walk

Saturday, November 1, 2014

Marc Faber Interview with Michael Covel on Trend Following Radio

Michael Covel speaks with Marc Faber, Editor and Publisher of "The Gloom, Boom & Doom Report", in person on the podcast (recorded in Chiang Mai, Thailand at Faber's office). Covel and Faber discuss the current state of Russia; changing geopolitics; Faber’s experience living through the Cold War; the difference between Crimea’s value to the west and its value to Russia; why the Russians perceived the uprising in Kiev to be financed by western power; China’s reaction to the situation in Crimea; the construction boom in China; the difficulty of forecasting China’s geopolitical changes; positive and negative valuations of the market, and finding investments to be “cheap” or “expensive”; Faber’s advice to young people following his path today in the face of money printing and bailouts; what can be done about wealth inequality; making a living in the face of instant communication and globalization; central banks’ role in wealth inequality; why money printing leads to bubbles; Warren Buffett’s involvement with the bailouts, and how his government connections have helped his investments; and how governments are assimilating everything; “Capitalism and Freedom” by Milton Friedman; and the cost of large government in the US and elsewhere. Plus, included are Faber's views on relationships, contrasting the West and Asia along with Facebook fame (not related to investing, but wise and entertaining words).

Wednesday, October 29, 2014

Faber Says U.S. Stocks `Pricey,' Favors Emerging Markets

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for global stocks and investment strategy. Faber speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Sunday, October 26, 2014

Listen to the Market, Fed May Intervene

Marc Faber, publisher of the Gloom, Boom & Doom report, discusses what he sees as the fundamental policy mistake made by global governments and what markets are trying to tell investors. He speaks on “In The Loop.”

- Source, Bloomberg

Thursday, October 23, 2014

Emerging Markets Have Done Fantastically Well

The Gloom, Boom & Doom Report Editor and Publisher Marc Faber discusses his outlook for the markets on “In The Loop.” (Source: Bloomberg)

Monday, October 20, 2014

Investors Recognizing Global Growth Slowdown

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt Miller, Scarlet Fu and Olivia Sterns on Bloomberg Television's "In the Loop." Bloomberg View columnist Barry Ritholtz also speaks. (Ritholtz is a Bloomberg View columnist. The opinions expressed are his own. Source: Bloomberg)

Tuesday, October 7, 2014

Geopolitical, U.S. war in Asia, Asian stocks

“The other issue that is not frequently discussed is the increased tensions in southeast Asia. China is a huge power; it needs resources. It will have to make sure the resources will always flow towards China, notably oil, iron ore and copper, and the U.S. has had this pivot to Asia which they declared about two years ago…which if you are Chinese, it’s a hostile move.”

Sunday, October 5, 2014

Hold Treasurys Despite Low Yields

There is "nothing attractive" about Treasurys at the moment says Marc Faber, publisher of The Gloom, Boom & Doom report, but investors should still hold them to offset risks.

Friday, October 3, 2014

Many Stocks Are Already Down

Marc Faber discusses the oncoming stock market crash. He appears on CNBC. Stocks are likely to fall further.

Wednesday, October 1, 2014

Rajan Right In Warning Of A Crisis

Emerging markets are closely watching the Federal Reserve’s Quantitative Easing program as it reaches its final leg.

Earlier in response to a Bloomberg TV India query, RBI Governor Raghuram Rajan had warned that the probable rise in developed markets’ interest rates may create some jitters across the Indian markets. Harsha Subramaniam discusses the same with Marc Faber, Editor, The Gloom, Boom & Doom Report.

Monday, September 29, 2014

Social Media Stocks Are Overvalued & In Bubble Phase

Marc Faber believes that the tech sector is in a bubble that is about to pop. He has always been a firm believer of gold and hard assets. Which would you rather own?

Many investors have speculated that the technology industry has been in a bubble recently due to the Federal Reserve's aggressive monetary policy initiative of low interest rates and monetary expansion.

Saturday, September 27, 2014

Raw Uncut Footage of Marc Faber Home Interview

Raw uncut footage of a Squawkonomics Home Interview with investment legend Dr. Marc Faber. Dr. Faber discussed with Keith Hilden of Squawkonomics about Bitcoin vs. gold, the Vietnamese investment environment, the South China Sea, Ukraine vs. Russia investment, the question of whether Africa will emerge, and the People's Bailout, bailing out Main Street rather than Wall Street.

Thursday, September 25, 2014

Only Asset Class That is Relatively and Absolutely Depressed is Gold & Silver Shares

This week we are kicking off the relaunch of Palisade Radio to mark our one year anniversary and over 100,000 views to date. We have put together an all star line up of industry experts that include Jim Rogers, Doug Casey, Eric Sprott, Rick Rule, Frank Holmes, James Turk, and today on the show with us is renowned investor Marc Faber.

When speaking about an imminent stock market correction, Marc Faber argues that since the market hasn't had more than a 10% correction since 2011, it is likely that we will see a 30-40% decline in the not too distant future.

Marc has witnessed many bull markets and crashes in his career. Marc says that bull markets frequently go on for longer than expected, but the current bull market is already very old, and has been going up steeply since 2009 – in other words, more than 5 years old. “The one thing I can say, is that we are in an aging bull market, and the recovery has lasted longer than the typical recovery phase over the past 100 years.”

We ask Marc if the Fed's current slowdown in tapering will be reversed in a stock market correction? Marc points out that whenever there is a problem with liquidity in the markets (1988, 2000, 2007), the Fed has stimulated the economy by injecting liquidity, so it's not unlikely that the Fed will again try to support asset markets. The problem is when this goes on long enough, numerous assets aren't affordable for the majority of people. The impact of this may be negative for the economy, because some asset prices may rise disproportionately in comparison to other prices.

In the multi year low in mining equities, Marc says that general assets are very high right now. And the only asset class that in Marc's view are beaten down now are the gold and silver mining shares. When looking at the Dow Jones Index in comparison to the GDXJ(junior gold mining stocks index), the underperformance from the GDXJ has been colossal. As a contrarian or as a value investor, Marc sees reasonable value in the gold mining stocks right now. Government bonds and other assets are essentially inflated, but the gold mining stocks are deflated.

Speaking on the influx on gold into Asia... Marc thinks it's an interesting situation, because in the west we have rumors of central bank's manipulation of the gold market to keep the price depressed. Marc believes that these rumors are insensible – the West should want to sell their gold at a high price, not at a low price point.

Finally, in the last 20 years, there has been a huge increase of wealth in Asia. The increase in gold purchases in Asia, comes from a growing population, and a population which is increasingly affluent. Marc says that in terms of the Asian stock markets, they are relatively depressed in comparison to the US stock markets, and there is better value there.

Dr Faber publishes a widely read monthly investment newsletter "The Gloom Boom & Doom Report" report, which highlights unusual investment opportunities, and is the author of several books, including “ TOMORROW'S GOLD – Asia's Age of Discovery” which was first published in 2002 and highlights future investment opportunities around the world. “ TOMORROW'S GOLD ” was for several weeks on Amazon's best seller list and is being translated into Japanese, Chinese, Korean, Thai and German. Dr. Faber is also a regular contributor to several leading financial publications around the world.

Monday, September 22, 2014

Faber Thinks Gold Has Bottomed

Marc Faber of the Gloom Boom & Doom Report thinks geopolitical issues will become more important for US markets, and says he thinks gold has bottomed.

Faber tells FOX Business Network that the geopolitical issues may well stretch beyond Iraq and Gaza. “There has been some reaction [in Europe] but there hasn’t been much reaction in the U.S. yet,” he says. “I think that geopolitical issues will become more important. At the present time what is dominating the geopolitical discussion is what is happening in the north of Iraq, ISIS and in the Gaza stretch and in Syria but it could spread out to Saudi Arabia. Because, don’t forget Saudi Arabia is a huge border with Iraq and also it could spread out into Turkey and then it obviously wouldn’t be very favorable for global trade.”

As for what he holds, Faber says that “basically I always own some shares, most of my shareholdings are in Asia. … I would own some gold, because I think the gold market has bottomed out. Year to date the junior gold mining index is up 40 percent.”

Saturday, September 20, 2014

World Is Probably Going Back Into Recession

Marc Faber appears on Fox Business, where he discusses the global economy. He see's another recession on the horizon.

Wednesday, September 17, 2014

Global Economy not Supporting Valuations

Is the S&P about to take 30 percent dive? Marc Faber, the editor and publisher of the Gloom, Boom & Doom Report, says the global economy does not support current valuations and the market may bypass a meaningful correction and go straight to a crash.

Monday, September 15, 2014

These are the Markets that Marc Faber Likes

Marc Faber, Publisher, The Gloom, Boom & Doom Report, explains why he thinks the agriculture sector is a good place for investments.

Saturday, September 13, 2014

Marc Faber Likes Gold, Silver

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about his investment strategy and the outlook for global financial markets. Faber speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia."

Thursday, September 11, 2014

More Market Volatility in Next 6-12 Months

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for global markets. Faber speaks with Matt Miller on Bloomberg Television's "In the Loop."

Wednesday, August 6, 2014

It is Pointless to Talk to the FED

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope. What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive. They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up...then they had the Nasdaq bubble, then they printed again and had the housing bubble. David Hume and Irving Fisher said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn’t see it that way so it is pointless to talk to these people.

- Source, Marc Faber via Market Watch

Monday, August 4, 2014

I See the Global Economy Weakening

When I travel and look around economies, I don’t see the global economy strengthening, I see it weakening. In Asia, we don’t have a recession per se, it is just economic growth has slowed down meaningfully or there is no growth at all .

We are now in the fifth year of an economic recovery which began in June 2009 in the U.S. and we’re more than in the fifth year of a bull market that began on March 6, 2009. This is a very mature economic would seem to me that the monetary policies that central banks pursue are negative for economic growth, but they are positive for asset price increases. As a result of asset price increases, lots of goods have become unaffordable for the typical household.

- Source, Market Watch

Saturday, August 2, 2014

Financial Media Doesn't Believe a Market Correct Can Happen

Since 2012, I have been expecting a correction that hasn’t happened, but it has happened in individual stocks, and it has happened in emerging economies. A 30% [drop] would not surprise me, but the financial media doesn’t believe it can happen. When the S&P was at 666 on March 6, 2009, they didn’t believe the S&P would go to 2,000 either.

The market is very overbought. The rise this year has been accompanied by fewer and fewer stocks making new highs. GE, GM, IBM, Wal-Mart, are no longer participating in the advance. [but] if stocks went down 30% I’d be interested again.

- Source, Market Watch

Thursday, July 31, 2014

Marc Faber, aka Dr. Doom, Sticks to Stock Swoon Call

They call him Dr. Doom, and he likes that label just fine. It also fits with the renowned Swiss investor’s unwavering belief that U.S. stock markets are headed for a 30% decline sooner or later.

Marc Faber, the editor and publisher of the “The Gloom, Boom & Doom Report”, is among a handful of doomsters who have been predicting a correction for stock markets. And with the S&P 500 index SPX +1.02% up more than 6% this year, grinding its way through year five of a bull market, those calls are hardly being ignored.

Faber’s call is among the most dramatic and he tends makes the headlines when he opens his mouth. He has been expecting a big pullback since 2012 and recently predicted to CNBC a rout like 1987, when the Dow industrials dropped 22.6% in a single day. Not everyone agrees with him, of course. Jim Paulson, chief investment strategist at Wells Capital Management, last week predicted a pullback for this year, but also a multiyear run for this bull market. Goldman Sachs raised its S&P target to 2,050 from 1,900 on Monday.

Among the stocks that Faber does find attractive are commodity-related issues. In his July newsletter he highlighted gold and silver-mining shares as among the very few sectors that are “extremely depressed and offer an opportunity for potentially very high capital gains.” Oil stocks got a nod on the view the Fed and other central banks will speed up money printing if the economy or markets begin to weaken, also good for gold.

Separately, Faber said momentum stocks like Twitter Inc. TWTR +0.47% and Veeva Systems Inc. VEEV -0.10% are back to being potentially good short calls, as was his stance earlier this year.

- Source, Market Watch

Monday, July 28, 2014

Marc Faber, Schiff, and Gartman Talk Markets

Bubble fears go mainstream. A battle of the bears, with The Gloom, Boom & Doom Report's Marc Faber, Peter Schiff of Euro Pacific Capital, and The Gartman Letter's Dennis Gartman. With CNBC's Jackie DeAngelis and the Futures Now Traders, Jim Iuorio and Scott Nations, both at the CME.

Saturday, July 26, 2014

Global Economy Not Supporting Valuations

Is the S&P about to take 30 percent dive? Marc Faber, the editor and publisher of the Gloom, Boom & Doom Report, says the global economy does not support current valuations and the market may bypass a meaningful correction and go straight to a crash.

- Source, CNBC

Thursday, July 24, 2014

Has the Boat Left the Dock for Gold?

“I don’t quite understand why anyone would be disillusioned by the movement in the gold price,” Faber says. But has the boat left the dock for gold? “In my view, there is no dock anymore because we have a money printing environment so we don’t really know where to park our boat or car,” he says. Faber comments on the recent Chinese gold scandal, tensions in the Middle East as well as central banks policies ahead of the much anticipated ECB meeting on Thursday. Perhaps deflation isn’t even as much of a threat that so many analysts make it out to be?

- Source, Kitco News

Tuesday, July 22, 2014

Stocks Could Crash 30% Because Obama's A Very Poor President

"There is a colossal bubble in all asset prices and eventually it will burst," is the subtle recurring message from The Gloom, Boom, & Doom Report's Marc Faber, warnings that "maybe has begun to burst already." While Faber admits he has called for such a correction previously, he notes that the difference now is that "valuations are so much higher; and contrary to what the mainstream economists believe, I don't believe the global economy is strengthening; in fact I believe it is weakening." Furthermore, while "you never know what will trigger for a bull market or bear market is until after the fact," Faber offers 3 factors (aside from the Fed) that could trigger a 30% crash or more... beginning with "a) In The White House we have a very poor President - which will lead to political issues domestically in the US," which are not priced in.

- Source, CNBC

Sunday, July 20, 2014

We're Entering a Bear Market

Faber has long been expecting a market decline. But for the precise reason that stocks have simply continued to rise, he's now become even more bearish.

"Obviously I've been wrong in the sense that I expected a correction to occur over the last two years, and it hasn't happened since October 2011, when the S&P was at 1,074. We've gone up in a straight line, without a larger correction than 11 percent, and I think we're not going to have a correction, but we're going to have a bear market," he said.

The first issue is that, Thursday's big jobs number aside, Faber doesn't believe that the economy is actually improving.

"I don't believe that the global economy is strengthening; I rather think the global economy is weakening," he said. And "there are other issues that may put the weight on the markets that will push prices lower. A, I think that we have in the White House, a very poor president, and that may lead to some political issues in the U.S. domestically. B, we have numberous political issues to consider, And C, we could have, potentially, a much higher oil price."

All in all, Faber is looking for a 30 percent drop in the S&P 500.

Meanwhile, it is worth nothing that while few are as bearish as Faber, several strategists have similarly been calling for a correction.

Jeffrey Saut, the generally bullish chief market strategist at Raymond James, called on Monday for a "decent pullback" in mid-July or early August. And Canaccord Genuity chief equity strategist Tony Dwyer, who has the highest year-end S&P target on the Street at 2,185, continues to foresee a 5 to 10 percent correction in the near-term.

- Source, CNBC

Friday, July 18, 2014

The Asset Bubble Has Begun To Burst

It's the question investors everywhere are wrestling with: Are asset prices in a bubble, or do they simply reflect the fact that the global economy is growing once again?

For Marc Faber, editor of the Gloom, Boom & Doom Report, the answer is clear. In fact, he says the bubble may already be bursting.

"I think it's a colossal bubble in all asset prices, and eventually it will burst, and maybe it has begun to burst already," Faber said Tuesday on CNBC's 'Futures Now' as the S&P 500 lost ground for the second-straight session.

Wednesday, July 9, 2014

Unbanked Developing World Not Ready for Bitcoin

Marc Faber in the latest Squawkonomics interview talks about Bitcoin IPOs in Developing Countries, and Developing Countries Usage of Bitcoin. Marc also talks about Buying Houses with Gold in Vietnam. Keith Hilden of the Squawkonomics team also talks about his on the ground experience during the Vietnam bank runs of 2012.

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Monday, July 7, 2014

Europe Would Struggle If ECB Doesn't Ease

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about European Central Bank policy, the global economy and investment strategy. Faber speaks with Tom Keene and Adam Johnson on Bloomberg Television's "Surveillance." Ralph Schlosstein, chief executive officer of Evercore Partners Inc., also speaks.

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Saturday, July 5, 2014

Blame the Media for Gold's Demise

Marc Faber, the editor and publisher of the Gloom, Boom & Doom Report, explains why gold's decline from its highs can be blamed on the financial press, with CNBC's Jackie DeAngelis and the Futures Now Traders.

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Thursday, July 3, 2014

Completely Unacceptable to Have American Military Presence in Asia

Marc Faber on the US for its Pivot to Asia in the South China Sea, and talks about declining US economic hegemony in the world. With Keith Hilden from the Squawkonomics team.

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Tuesday, July 1, 2014

Marc Faber Takes on the Fed

The Fed meeting begins. What Marc Faber, The Gloom, Boom & Doom Report, likes now and where he sees the market headed. With CNBC's Jackie DeAngelis and the Futures Now Traders, Jim Iuorio and Jeff Kilburg, both from the CME.

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Sunday, June 29, 2014

Why I Would Be the Greatest Hawk in World

"Gloom, Boom and Doom Report" Editor and Publisher Marc Faber discusses French government bonds and monetary policy on Bloomberg Television's "Bloomberg Surveillance." Evercore Partners CEO and President Ralph Schlosstein also speaks.

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Friday, June 27, 2014

Wednesday, June 25, 2014

Fed's Policies a Catastrophe

Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, still thinks the Fed is painting itself into a corner, with CNBC's Jackie DeAngelis and the Futures Now Traders.

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Saturday, June 14, 2014

Inflation is Here to Stay

"In case things turn out bad again, the central bankers have one thing left: money. When they start throwing out money, it will lead to price increases. Nobody can deny that anywhere in the world energy prices are substantially higher than they were ten years ago. Nobody can deny that food prices are up. Nobody in the US can deny that insurance premiums are up. So, to throw money at the system, at some point will lead to some more visible (!) pressure on consumer prices. Stocks has basically done nothing since the beginning of the year. But long term bonds are up 12% this year. Now, during the next downturn, I believe stocks and bonds will go down at the same time."

- Marc Faber

Thursday, June 12, 2014

Stating There is No Inflation is an Error

"Inflation is an increase in the quantity of money and credit. The symptoms occur in a variety of forms. You can print money in the US, but it could happen that it does not boost economic activity in the US but only in China or in Vietnam or Indian and so forth. It can boost wages in India, it can boost real estate prices in London, and so forth, because we have a global economy. Stating there is no inflation is an error."

- Marc Faber

Tuesday, June 10, 2014

No Asset Class is Terribly Attractive Right Now

"I don’t see any asset that is terribly attractive. The most underappreciated asset is cash. Nobody likes cash. In the next 10 years, you will earn precisely 0 percent. In fact, you will lose money because Ms. Yellen is a money printer like all the others, and she will make sure that the dollar will depreciate in real terms. But for the next 6 months, cash will be most attractive. I don’t want to be in cash, but in the coming 6 months a lot of opportunities will come along."

- Marc Faber

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Sunday, June 8, 2014

Stocks Could Easily Drop 10, 20 Percent

Marc Faber, publisher of the Gloom, Boom & Doom report, remains bearish on U.S. stocks, seeing valuations as stretched.

"I don't regard this as a very healthy market," he told CNBC. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent."

The Standard & Poor's 500 index rose 4.46 points, or 0.2 percent, to close Thursday at 1,892.49, within 1 percent of its record high. The index is up 2.4 percent for the year. The index' trailing price-earnings ratio registered 18 as of Friday, according to Birinyi Associates. That's above its historical average.

Faber isn't too enthusiastic when it comes to Treasurys either, saying there is "nothing attractive" about them.

The 10-year Treasury yield stood at 2.55 percent early Friday, after hitting a 6 ½-month low of 2.47 percent last week.

While acknowledging that U.S. stocks are "relatively expensive," he noted that Europe and emerging markets offered better value.

"If I were to buy equities I would rather go into emerging economies, but I don't think there is a hurry."

"I think we are bracing for a general asset deflation," Faber stated. "I think the system is still very vulnerable. I'm not predicting a complete collapse, because money printing can go on almost endlessly. But it will have unintended consequences."

- Source, Money News

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Friday, June 6, 2014

An Exclusive In Depth Interview With Dr. Marc Faber

We Talk About The Markets, Economy, Bitcoin And More!

Dr. Marc Faber is a Swiss investor. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager. Faber also serves as director, advisor and shareholder of a number of investment funds that focus on emerging and frontier markets, including Leopard Capital's Leopard Cambodia Fund and Asia Frontier Capital Ltd.'s AFC Asia Frontier Fund.

Faber has a reputation for being a contrarian investor and has been called "Doctor Doom" for a number of years. He was the subject of a book written by Nury Vittachi in 1998 entitled Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis. Faber has become a frequent speaker in various forums and makes numerous appearances on television around the world including various CNBC and Bloomberg outlets, as well as on internet venues like Jim Puplava's internet radio show. Faber has also engaged the Barron's Roundtable and the Manhattan Mises Circle.

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Wednesday, June 4, 2014

The Market is Long Overdue for a Significant Correction

Wall St for Main St interviewed the editor of The Gloom Boom Doom report, Dr. Marc Faber. In this podcast, we asked Dr. Faber about his background as an investor and how he climbed the rank as one of the great investors of our time.

We also talked about the China economy and where it is headed in the near future, the U.S. stock market, the Federal Reserve and much more!

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Monday, June 2, 2014

Momentum Selloff Caused Market Damage

Marc Faber, managing director and founder of Marc Faber Ltd., comments on the outlook for the U.S. stock market. He speaks with Trish Regan on Bloomberg Television.

Saturday, May 31, 2014

US Stock Market Will Fall Soon

Marc Faber, publisher of The Gloom, Boom & Doom report argues that a fall in the U.S. equity market could happen soon and says investors should brace for a "general asset deflation."

- Source, CNBC

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Thursday, May 29, 2014

Marc Faber - I Will Never Sell My Gold

Marc Faber, managing director and founder of Marc Faber Ltd., and Ian Bremmer, president of Eurasia Group, discuss the state of the Chinese economy and the outlook for the U.S. stock market with Trish Regan on Bloomberg Television's "Street Smart."

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Tuesday, May 27, 2014

Sunday, May 25, 2014

Marc Faber - This is Not a Very Healthy Market

Marc Faber, publisher of The Gloom, Boom & Doom report argues that a fall in the U.S. equity market could happen soon and says investors should brace for a "general asset deflation."

- Source, CNBC

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Friday, May 23, 2014

Bull Market in Stocks is Running Out of Steam

Marc Faber, investment guru and the editor of the Gloom, Boom and Doom report, warned on Thursday that stock markets -- particularly in the United States -- were vulnerable to sharp falls.

U.S. stocks jumped on Wednesday after minutes from the Federal Reserve's last meeting had central bankers discussing ways to normalize interest rates. The Dow Jones Industrial Average leaped as much as 170 points, and ended up 158.75 points, or 1 percent.

A bull run in equities that started around five years ago has caused much debate in recent months with some investors believing that it may be running out of steam. However, some remain optimistic that extra liquidity—provided by central banks around the world—would continue to help bolster the asset class.

St"I don't regard this as a very healthy market, " Faber told CNBC from Singapore. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent." He pointed out that many stocks are already down 10 to 20 percent, such as momentum stocks which include high-flying technology and biotech shares.

- Source, CNBC

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Saturday, May 10, 2014

The Federal Reserve Is A Clueless Organization

Marc Faber says the stock market is setting up for a decline more painful than the sudden crash of 1987.

"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Faber said with a devious chuckle on Thursday's episode of "Futures Now." "And I suspect it will be even worse."

Faber, the editor and publisher of the Gloom, Boom & Doom Report, has recently called for growth stocks to decline. And he says the pain in the Internet and biotech sectors is just getting started.

"I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations," Faber said. "They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run."

To be sure, there are prominent investors that disagree with Faber, among them legendary stockpicker Bill Miller, who said this week that conditions for a bad market simply don't exist.

But it's not just momentum stocks that Faber is wary of. He says that investors are coming to a stark realization.

"I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization," Faber said. "They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view."

- Source, CNBC

Thursday, May 8, 2014

The Shocking Moves Marc Faber Is Making With His Money

Over the last 12 months I increased my positions in Vietnamese shares significantly. And I also increased some real estate holdings in Vietnam.

I think we have kind of a bubble in real estate in Thailand. But I can see that real estate markets are very fragmented, and I’ve seen that in the U.S. as well. So, yes, prices of real estate in Chiang Mai (Thailand) have gone up substantially, but I see zillions of Chinese now coming to (live in) Chiang Mai.

Now, Chiang Mai for these Chinese people, or for Japanese, or Koreans, is like a paradise. It’s inexpensive. They can play golf for good value. The food is good, the climate is good, and so forth. So a lot of people will move to Chiang Mai from Western Europe and the U.S. because if you get a pension of $3,000 or $4,000, in Europe you can hardly live, but in Thailand you can live very well.

So there will be a large influx of foreigners into an area like Thailand. We have already owned properties here for more than 30 year, but in the last 12 months I increased our holdings on the outskirts of high end areas of raw land.

- Source, Marc Faber, via a recent King World News interview:

Tuesday, May 6, 2014

The IMF is a Crooked Organization

The head of the IMF, which is a crooked organization anyway, she (Christine Lagarde) advocates a wealth tax on the rich -- a one time wealth tax of say 20% of their assets. I don’t know how they would implement that because a lot of people own their wealth through corporations.

She (Lagarde, proposes this), working for the IMF which doesn’t pay any tax at all. But this is government, you understand? Like Obamacare is good for ‘everybody,’ but not for members of Congress. This is like in (the book) Animal Farm, some pigs are more equal than others.

...We try, like you, we try to bring a different picture than what the media people do -- media people who are of course part of the part of the plan of the elite that populate the financial service industry. So they are all in favor, basically, of money printing.

Because as long as markets are strong, the viewership of TV stations that broadcast business news is not entirely collapsing. It has already gone down partly because of the competition from people like you because people prefer to listen to some truth than to continue with lies.

- Source, Marc Faber via King World News, Read More Here:

Sunday, May 4, 2014

The Fed Abused the System by Printing and Printing

The monetary policies as they are implemented by central banks around the world, are actually preventing the markets to clear and the economy to truly improve. ...And there is wealth inequality to the extent that not the 1 percent but the 0.1 percent become immensely well-to-do because money printing helps the financial asset players and the real estate owners, and the majority becomes poorer.

The Fed has these statistics. They compile them themselves. In the U.S., since 2007 the majority of Americans in terms of wealth are poorer today by 40% than in 2007. But the 0.1% are far wealthier. That is the problem. When the wealth inequality increases at the expense of the majority, then you get Hollande in France who says, ‘If things go bad for you, if you are suffering, it’s all the fault of these rich people that abuse the system.’

The rich did not abuse the system. They behaved in a capitalistic way. The Fed abused the system by printing and printing and printing, and that created this situation where the cost of living of the lower income recipients is going up strongly because of energy costs, transportation costs, healthcare costs and food costs.

But the rich do not suffer because for them food is a tiny portion of their expenditures. It’s nothing compared to the expenditure of the private jet, so they don’t care about that. But if you have a household income of $40,000, and you spend say 30% to 40% on food and energy and transportation every year, it matters whether these prices are going up or not. So for the majority of people life has become harder, whereas for the .01 percent life has become a paradise. But that will change one day in my view.

- Marc Faber via King World News, read more here:

Friday, May 2, 2014

Emerging Markets are being Stifled by Inflation

I travel a lot, but I would say that I don’t see a meaningful economic improvement anywhere. In fact, when I travel throughout Asia I see economies that are no longer growing. ...If central banks argue that we need an inflation rate of 2%, then I could argue that maybe it would be better to have deflation of 2% - 3% per annum every year because if prices went down for food, energy, healthcare and so forth, then the typical household would be better off because it would have more money to spend.

And taxes have been going up for most people. They may not see it, but each time they use a public service, whether it’s a train from (point) A to (point) B, or a toll road, or a tunnel fee, they pay much more than before.

I think the central banks are supported by the media, and I have to say that at least you (at KWN) present an objective picture of what is happening in the world, whereas the talking heads of mass media, they always kind of support what central bankers are doing -- when in fact, because of the money printing the typical household is being hurt....

- Source, Marc Faber via King World News, read more here:

Wednesday, April 30, 2014

No Dubai Property Bubble, Despite Price Rises

Mr Faber, the author of the Gloom, Boom & Doom Report newsletter, said that after their huge bull run since 2009, US stocks would enter a bear market, dragging prices down by 20 or 30 per cent.

In China, a huge build-up in consumer credit since the government unveiled an economic stimulus plan in 2008 would burst sooner or later, he said.

But Dubai’s property market was at a less critical phase, Mr Faber said on the sidelines of the Middle East Investment Summit in Dubai on Wednesday.

“I don’t think we’re yet in a bubble stage but we had a big rise in property prices already,” he said. “We have not reached the 2007 peak yet. We’re not in a bubble yet, but it may become a bubble in the future.”

Prices in Dubai’s property market grew by as much as 40 per cent last year as the emirate benefited from returning investor confidence and buyers from less-stable parts of the region. But as new megaprojects have been unveiled in recent months, some observers have begun drawing parallels to the previous property boom before 2008. After reaching historic highs, prices then sank by more than half as credit dried up and confidence crumbled.

In the US, both the Dow and the Standard and Poor’s markets are frequently touching new highs, while the Nasdaq has reached its highest level since the Dotcom boom ended in 2000.

“We have had this huge expansion in the S&P level since 2009. The S&P was at 666, it went to over 1,800 and at some point we will have a bear market, 20 to 30 per cent,” he said. “Since October 2011, we haven’t even had a 10 per cent correction.”

Analysts are questioning the sustainability of the stock rally as the Federal Reserve tapers a monetary stimulus programme that was until January pumping US$85 billion into the economy every month.

Mr Faber said he was invested in 10-year US treasury notes as, he believed, when stock prices declined investors would race for the relative safety of cash and treasury bonds.

In China, Mr Faber said, he was concerned about the 50 per cent growth in credit in the past five years.

“This credit bubble in China is going to burst,” he said. “The question is will it burst now or can they postpone the problem once again? Possibly, but at some point growth will slow down considerably.”

He said he was convinced annual GDP growth in China was no longer 7 per cent but more like 4 per cent.

Expectations are growing that Chinese policymakers may intervene to boost the economy in an effort to help the economy achieve its 7.5 per cent annual target.

A preliminary survey of factory data released on Monday revealed that the manufacturing sector had deteriorated for the third month running. Industrial output figures for the previous two months had also been weaker than anticipated.

- Source, The National:

Monday, April 28, 2014

Colossal Credit Bubble in China is Being Deflated

While Faber generally seems to be a long-term bull on China, he had some disquieting things to say about the extent of malinvestment in China due to the recent round of government stimulus and infrastructure-oriented investment.

Faber told Trish Regan and Matt Miller “I think that we had a colossal credit bubble in China and that this credit bubble is now being gradually deflated….if I look at export figures from China, and they are very closely correlated to overall economic growth, then there is a huge discrepancy between what China reports and what China’s trading partners are reporting.”

He said, “There’s lots of funny things that are happening in China. And when the whole thing unwinds it will be a disaster.”

His view is that the trade figures out of China do not correspond with the aggregated trade figures coming out of China’s trade partners. He believes the economy has slowed markedly and that GDP growth is more in the 4% region than the 7.5% region.

- Source, Credit Writedowns:

Saturday, April 26, 2014

The Federal Reserve Artificially Manipulates Asset Prices

In a free market economy, you will always have price fluctuation. The Federal Reserve today, artificially manipulates asset prices up. It’s a huge mistake, but that is what they do. To answer your question specifically, we had a bear market that ended March 6th, 2009 (S&P at 666). We are at 1800 now, almost three times higher. Over the last 2 years, most equity markets around the world, most markets have been down (they are not following to the upside), but in the US an increasing number of shares are breaking down, we have had very heavy insider selling recently, high valuations and extremely high corporate profits from historical standards. My view is that in a month time, the bull market will be 5 years old. That’s the second longest bull market in the last 100 years. I would not buy shares. Can the market go up another 20%? It’s like the Nasdaq in late 1999, where the Nasdaq went up another 30% between January and March. People were crying afterwards with their losses.

So markets go up and down. I think that the upside potential now is very limited and there is considerable downside risk, probably much more downside risk than most investors consider.

- Marc Faber, Author of the Gloom Boom and Doom Report

Thursday, April 24, 2014

Fundamentals of Gold in the Light of the 2 Year Downtrend

Basically we had a huge run up in prices between 1999 (255 USD) to early September 2011 (1920 USD). We have been in a correction period. Now I think the correction period was partly justified because there was too much enthusiasm and speculation, leading to the peak of 2011. But I think that there have been some market manipulation, it could be. My sense is that the correction has probably come to an end, because if anything the fundamentals are much better today than they were at that time. But the price is down.

Every investor understand the principle buy low and sell high. When prices are low, nobody wants to buy. We also had very negative sentiment recently. I am not so sure about asset markets as we could one day after this colossal asset inflation of the last 20 to 30 years, also have asset deflation. But when I compare gold shares and the price of gold to the S&P 500, the S&P is up substantially since 2011 and gold is down.

- Source ETF Daily:

Tuesday, April 22, 2014

Asian conflicts and the impact on natural resources

My view is this. We wouldn’t have a conflict in Asia if there was no intervention by the US. The US has the security pact with Japan and military and naval bases all over Asia. The Chinese economy is highly vulnerable in the interruptions in the supply of metals and oil, because 47% of global metals consumption is nowadays coming from China (up from 4% in 1990 and 10% in the year 2000). It has become a huge factor; for their industry, they need iron ore from Australia, copper from Australia, oil from the Middle East, etc. The Chinese are very concerned about interruptions of supplies. Over time, the Chinese would want to control the East and South China Sea. I do not think that they have any aggression plans. The US would not be particularly happy if the Chinese or the Russians would have military bases in the Carribean, Mexico, Canada, The Chinese cannot accept to be encircled by military bases by the US in Central Asia, in North East Asia and in South Asia. So I believe the tensions will increase over time.

- Source ETF Daily:

Sunday, April 20, 2014

If there was a recession in China, would people still buy gold?

I think, if the Chinese economy imploded, it is likely that the currency would begin the weaken (the Yuan). Or that the government would implement a devaluation of the Yuan. If that were the case, I think that Chinese individual investors would rather shift of their money in gold (which they can buy in China nowadays) then keep the funds in the local currency. I think that trouble in Asia and geopolitical unrest in Asia, along with [economic] problems in the rest of the world, may actually lead to higher gold demand rather than lower gold demand.

- Source:

Wednesday, April 16, 2014

China's Colossal Credit Bubble Is Deflating

Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Monday, April 14, 2014

A Chinese Slow Down is on the Way

“Well, I have talked about a meaningful slowdown in the Chinese economy for more than a year. Now the government had been very good at hiding the slowdown, but it is now becoming clearer that the slowdown is on the way. I suppose that China has been and will grow at 4% per annum at the most, which is a relatively a slow growth rate, but it is a very high growth rate compared to, say, that in the US or Europe.”

- Marc Faber, Author of the Gloom Boom and Doom Report

Saturday, April 12, 2014

The FED Could Give Up Tapering

“Basically, what they are usually saying is that everything is data dependent. In other words, since October 2011, we have not had a significant correction in the market. The largest corrections were those of less than 11% and actually, over the last three to four months, we have gone up very strongly. Now if the data deteriorates and if the stock market declines by 20% over a given period of time, I think the US Fed would actually increase asset purchases and actually give up the tapering that they propose.”

- Marc Faber, Author of the Gloom Boom and Doom Report

Thursday, April 10, 2014

Marc Faber Explains Where Gold is Headed

Marc Faber gives his forecast for gold, the US dollar and global economies going forward.

Tuesday, April 8, 2014

China's Unwind Will Be a Disaster

Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart."

- Source, Bloomberg TV:

Sunday, April 6, 2014

Marc Faber's Forecasts for the Global Economy

Marc Faber discusses what opportunities are likely to emerge for institutional investors if sovereign debt continues.

Friday, April 4, 2014

Gold Inexpensive Compared to Other Asset Classes

Expect US dollar to rally against the Euro and Dollar has been strong against EM currencies says Marc Faber.

Wednesday, April 2, 2014

China to see 4% growth

Marc Faber appears on CNBC where he explains why he see's China's economy growing at only 4% going forward.

- Source, CNBC: