, Marc Faber Blog: February 2014

Friday, February 28, 2014

Rapidly Escalating Household Debt

Faber warned of the risks of the present global credit bubble and said another slowdown could follow on the back of rising consumer debt levels – which had previously helped to create growth.

"Total credit as a percent of the global economy is now 30 percent higher than it was at the start of the economic crisis in 2007, we have had rapidly escalating household debt, especially in emerging economies and resource economies like Canada and Australia and we have come to a point where household debt has become burdensome on the system—that is, where an economic slowdown follows."

- Source, CNBC:

Wednesday, February 26, 2014

Treasury Yields to Rise as Investors Seek Safe Haven

Since the Fed started tapering its monthly asset purchases by $10 billion a month in December and another $10 billion in January, stock markets have taken a tumble. Emerging markets fell first; this week the U.S. and Europe have also seen significant weakness.

On Monday, U.S. stocks saw their worst start to February since 1933 after a manufacturing report heightened concern about the strength of the U.S. economy.Overall factory activity hit an eight-month low in January as new order growth plunged by the most in 33 years.

Illustrating the heightened state of concern among investors, the CBOE Volatility Index rose above 20 on Monday for the first time in four months, while the yield on the 10-year Treasury note hit a three-month low. Faber said he had been advising his readers to buy 10-year U.S. Treasurys over the last few months. He expects yields to rise as investors would seek a safe haven.

"For the next three to six months probably they are a better place to be than equities," he warned. "I don't like [10-year Treasurys] for the long-term because the maximum you can earn is something like 2.65 percent per annum for the next 10 years, but Treasurys are expected to rally because of economic weakness and a stock market decline. In the last few years at least there was a flight into quality – that is, a flight into Treasurys."

- Source, CNBC:

Monday, February 24, 2014

Marc Faber Fed Monetary Policy Will Destroy World‬


Flashback - Marc Faber predicts the printing of money by central banksters around the world.

- Source, Bloomberg TV:

Saturday, February 22, 2014

Fed Policy Has Led to Global Problems


Marc Faber Ltd. Managing Director & Founder Marc Faber discusses fed policies and how they're creating a two-class system with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart."

Thursday, February 20, 2014

Something More Serious is in the Offing

"I'd like to reserve the opinion about this until we see the nature of the rebound," he said. "If the rebound fails around 1,820 [on the S&P 500] and then the market starts to drift again on the downside, and we see important shares for the market such as General Motors, GE, Coke... failing to make new highs, then I think we can assume that something more serious is in the offing."

- Marc Faber via a recent CNBC interview:

Tuesday, February 18, 2014

Quantitative Easing Has Not Lifted the Standard of Living

The Federal Reserve's quantitative easing program has lifted asset prices substantially.
"I think stocks are, by and large, fully priced," Faber said. "I think the experience with quantitative easing is a complete failure. It has lifted asset prices and created asset inflation, but it hasn't lifted the standard of living of most people in the U.S. nor worldwide."

Faber has long been bearish on the market—a call that obviously has not played out well over the past five years. But even though stocks have started 2014 with some days of sharp losses, he said the correction he has been forecasting may not have begun just yet.

- Marc Faber via a recent CNBC interview:

Sunday, February 16, 2014

Tapering is Putting Pressure on the Markets

Global market volatility is not just down to the U.S. Federal Reserve's tapering of its monetary stimulus program, according to influential investor Marc Faber, who warned that the wild swings seen in recent weeks are also down to a global slowdown in growth.

"It would seem to me that it's not just tapering that is putting pressure on the markets," Faber, the author of the closely watched "Gloom, Boom & Doom Report" told CNBC on Tuesday. "In emerging economies, we have practically no growth, we have a slowdown in China that is more meaningful than the strategists seem to think and than the official, Chinese statistics seem to suggest."

"That then puts pressure on the earnings of the multinationals because most of the growth in the world over the last five years has come from emerging economies," he told CNBC Europe's "Squawk Box." No growth, he said, was causing "a vicious circle on the downside" with slowing emerging economies and inflated asset markets that are now deflating, in turn putting more pressure on asset prices and on the economies.

- Marc Faber via a recent CNBC interview:

Friday, February 14, 2014

Market Volatility Will Continue, Here's Why


Marc Faber, author of Gloom, Boom and Doom Report, says household debt becoming "burdensome on the system" and an economic slowdown is ahead.

Wednesday, February 12, 2014

The Market is Overdue for a 20% to 30% Correction

Marc Faber predicts that stocks will drop by 20 percent to 30 percent in the near future. But he personally hopes that they will fall even further.

"I think the market is way overdue for a 20 to 30 percent correction," said Faber, the editor and publisher of the Gloom, Boom & Doom Report. But that is "nothing that worries me," he said. "In fact, I'm hoping for the market to drop 40 percent so stocks will again become—from a value point of view—attractive."

Faber added with a chuckle: "But that is not the view of someone who is fully invested—obviously not."


- Source, Marc Faber via CNBC:

Monday, February 10, 2014

Here’s How Much I Want Stocks to Fall


Marc Faber thinks stocks will correct by 20 percent to 30 percent but said they will present good value only if they drop more. With CNBC's Jackie DeAngelis and the "Futures Now" traders.

Tuesday, February 4, 2014

The Most Powerful People in the World

"The larger the government becomes, the less economic growth you have and the more crony capitalism and corruptions you have, because big corporations, and especially the money printers, they're the most powerful people in the world."

- Marc Faber