, Marc Faber Blog: January 2014

Friday, January 31, 2014

Where is the Dollar Headed?


Marc Faber appears on Bloomberg business where he discusses the ongoing market bubble. He see's a QE4 and QE5 coming. Also he believes the dollar is going much lower and gold much higher.

- Source, Bloomberg:


Wednesday, January 29, 2014

Money Printing Only Benefits the Rich

"If you print enough money, it falls onto someone; it falls mostly onto well-to-do people, but then they go and spend – they go to restaurants, etc. – so every benefits somewhat. But I have to stress somewhat."

- Marc Faber via a recent Fox Business interview

Monday, January 27, 2014

Faber Sees Gigantic Asset Bubble, Slowing Growth


Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the impact of Federal Reserve policy on the global economy, Bitcoin and financial markets. He speaks with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart."

- Source, Bloomberg:




Tuesday, January 21, 2014

Faber on Gold, Discipline and Diversification in 2014


Marc Faber of the Gloom, Boom & Doom Report is worried about inflation given the Federal Reserve’s massive money printing efforts. But he doesn’t think diving headlong into gold and/or real estate is the best move. Faber tells FOX Business Network that he thinks investors should still use a diversified strategy, owning stocks, real estate, gold, and bonds as part of a disciplined approach. He also talks about his belief that US growth had been driven mainly by deficit spending and money printing.

- Source, The Guru Investor:

Sunday, January 19, 2014

Physical Gold is ALWAYS Good Insurance

Marc Faber is back and his New Year’s resolution did not include a dose of optimism when it comes to the economy. He was back on Fox Business for his first interview of 2014, and the themes remain the same. Faber even tosses in a mock congratulations towards outgoing Federal Reserve Chief Ben Bernanke on the job well done.

The interview, while clocking in at under four minutes, was wide ranging. But with Marc Faber, you know the publisher of the Gloom, Doom and Boom Report is going to get back to his central premise of owning physical gold as a form of insurance. Kicking off the interview was the old standby of the resurgent housing market.

Dagen McDowell wanted to know why people shouldn’t jump back into the housing market as a hedge against inflation. Maybe she saw the plunge in mortgage applications and got the word to start pumping people up again. Marc Faber pushed back, saying that all the Federal Reserve has done is rebubbled the housing market with the QE market. Hard to argue the point. Look at mortgage rates pricing people out of the market, and the number of cash-only sales.

Unless there has been a sudden boom of people unearthing caches of cash in their backyards, those are not your typical middle class buyers. Marc Faber maintains that home prices do not represent a great opportunity today, and in fact it forces people into renting at ever increasing rates.

His solution? Diversify. Does he think you can make all your money back on gold if you invested at the beginning of last year? Not necessarily, but that doesn’t mean you do not have some in your portfolio. Add in bonds, equities and real estate for a balanced portfolio. He does not buy into the hype surrounding the ever surging markets.

Actually, for a guy a that is normally thought of as a doomer, his advice sounds more sound than the mainstream who sits around and screams about the next momentum stock. And judging by the way gold is acting today, it is off to a better start this year than last.


- Source, Trade the News Room:

Friday, January 17, 2014

Marc Faber 'Congratulates' Ben: "Well Done, Mr. Bernanke!"

In a little under four minutes, Marc Faber explains to Fox Business' Dagen McDowell all that is wrong with the Central Planners 'current plan'. From a re-bubbled housing 'recovery' pricing real buyers out of the market ("homes do not offer a great opportunity today") to forced-renters paying increasing amounts of their stagnant wages, and the small percentage of ordinary Americans who actually benefit from a rising stock market, reducing their disposable income to which Faber sarcastically rants "well done, Mr. Bernanke." His advice, be diversified, don't BTFATH in stocks, and physical gold is always a good insurance.

- View the full video on Zero Hedge Here:

Monday, January 13, 2014

Within a Year FED Asset Purchases Will be Substantially Higher

Faber said the good times cannot last.

"The economic recovery, or so-called recovery, by June of next year, will be in the fifth year of the recovery," Faber said. "So at some stage the economy will weaken again, and at that point, the Fed will argue, 'Well, we haven't done enough, we have to do more.'"


The noted bear has little admiration for the economists at the Federal Reserve.

"The Federal Reserve—all of them—could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger," Faber said. "That is the state of mind of the professors at the Fed, who never worked a single [day] in business."

And while Faber actually believes that a reduction in QE could happen, he wouldn't view it as a true tapering, as he says it will be a largely meaningless, one-time move that will eventually be reversed as the economy worsens.

"They may do some cosmetic adjustments, but in my view, within a few years, the asset purchases will be substantially higher than they are today," Faber said.

- Source, CNBC:

Saturday, January 11, 2014

Taper or no taper, the Fed will never end QE



When the Federal Reserve announces its next move on Wednesday, some expect it to reduce its $85 billion monthly bond-buying program, targeting an eventual end to quantitative easing in late 2014. Others expect the Fed to begin to reduce the program in early 2014, or to finish it off by 2015. But Marc Faber has a different take altogether .

"The Fed will never end QE for good," the editor and publisher of the Gloom, Boom & Doom report said Tuesday on CNBC's "Futures Now." "They will continue because these programs, once they're introduced, usually keep on going."

The Fed will announce its decision at 2 p.m. EST on Wednesday, and Fed Chairman Ben Bernanke will follow that up with a 2:30 p.m. news conference. Expectations for the meeting are mixed, but more that 50 percent of Wall Streeters expect the Fed to taper its QE program in either December or January, according to the CNBC Fed Survey. As economic data have improved, many investors are guessing that the Fed no longer considers QE to be as vital as before.


- Source, Marc Faber via CNBC:

Thursday, January 9, 2014

I Don't Think People Should Buy Stocks

"I think we will go up until it's over," Faber said. In 2013 "I wrongly predicted a 20 percent correction—it hasn't happened. But I think when it's over, it will be more than 20 percent."

Given that nuanced view, "I'm not yet short, but I would look at essentially any rally here in the U.S. market as an opportunity to lighten up on positions," Faber said. "And I don't think people should buy stocks".

- Source, Marc Faber via CNBC:

Tuesday, January 7, 2014

Marc Faber's Shocking Call - Go Into Cash!


Marc Faber is well-known for his bearish take on stocks as well as his theory that the actions of the Federal Reserve will end up crushing the value of the U.S. dollar. And that is precisely why his latest recommendation is so surprising.

When asked whether investors should keep their money in cash on Tuesday's episode of "Futures Now," Faber responded: "Cash, yes. I think the most hated asset at the present time is cash."

This despite the fact that his monetary view hasn't changed.

"I agree that with the Fed's policy, cash loses purchasing power," Faber said.

The problem is that Faber thinks the market could crash, but only after rising further.

- Marc Faber via CNBC:

Thursday, January 2, 2014

We Are in a Massive Bubble

"You have to say that we are again in a massive financial bubble in bonds, in equities, in [other] asset prices that have gone up dramatically."

- Marc Faber