Monday, December 26, 2016
Friday, December 23, 2016
US Fed not expanding asset base; dollar overvalued
Asserting that the central banks in Europe and Japan will keep feeding excess liquidity to the world, Marc Faber believes that the US Fed is not expanding its asset base. While European Central Bank and Bank of Japan are doing so, flows out of Europe and Japan will lead to weakening of the euro and yen and strengthen the dollar, he said.
The editor of Gloom Bloom & Doom Report told CNBC-TV18 that contrary to popular opinion that emerging markets have performed poorly in 2016, any market outside the US looks very attractive now especially in terms of valuations.
Investors are too bullish about the US, negative about emerging markets, and are neglecting Japan and Europe, he said. India is much better placed and has greater potential to grow than Western economies, Faber said. Corporate profits have still room to expand, he added. Fundamentally, the dollar is overvalued and valuations in US markets are at historical highs, he said. Any further strengthening of the US dollar will curb the US Federal Reserve’s capability to raise interest rates, Faber said.
The Fed on Thursday raised rates by 25 basis points and in the past indicated the possibility of three interest rate hikes in 2017. Oil and mining companies, financials and tech figure among his favourite sectors for 2017, he said, adding that he sees a lot of upside potential in agricultural commodities.
- Source
Tuesday, December 20, 2016
Marc Faber's Contrarian Trump Strategy: Buy Gold, Emerging Markets
Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” says the savvy investors will know the right moves to make amid the current rally as the stock market continues to bask in Donald Trump’s election victory.
Faber suggested many investments that appear contrarian, including gold and emerging markets. He sees opportunity in some other beaten-down assets, such as the euro and bonds.
However, he warned investors to stay away from assets that have rallied, like the U.S. dollar.
Shrewd investors should seek stocks that are "oversold, and avoid the sectors that are overbought," he told CNBC.
- Source
Sunday, November 27, 2016
Marc Faber: A Trump Victory is Much Better for U.S. Assets
- Source
Thursday, November 24, 2016
I don't think big corruption comes from bank notes
Anuj: I remember when I can to Chiang Mai to interview you, you said you would vote for anyone but Hillary Clinton. You would be a happy man today.
A: Yes, and I still would do the same.
Latha: But what do you do as a stock picker? This evening would you be looking at buying any of the emerging markets, developed markets? What are you doing with your money today?
A: I am not interested in today. When I invest money, I am interested in the next 5-10 years and I told you always over the last two years, I would rather invest in India than in the United States, which is an over-valued, over-promoted market. I would also rather invest in other emerging economies and in Europe than in the US.
Sonia: So, since you mentioned that you would invest in India rather than other economies, I wanted to ask you if you have been following the latest news flow that we have about the clamp down on black money that we had overnight. How much of a positive do you think it could mean in the longer run for India?
A: It is negative in the longer run. I do not believe the big corruption comes from bank notes. The big corruption is like Hillary Clinton, she carries around suitcases.
Latha: But do you expect there is going to be any protracted downturn since the markets were not prepared for a Trump victory. Are we going to see protracted, in terms of time period as well, losses in equity markets?
A: My view is that regardless who would have won, the stock markets would have gone down. But, the market made a high a year ago at 2,134 on May 25, and then we went down and in January of this year, we dropped to 1,810 and then we recovered and made a new high at 2,193 on the Standard and Poor (S&P). If the market drops towards the low of this year, which is 1,810, the Fed will launch quantitative easing (QE) -IV. The Fed will support the stock market. The moment it drops 10-20 percent, they will support the stock market.
- Source, Money Control
Monday, November 21, 2016
Commodity prices will strengthen
- Source
Thursday, November 17, 2016
Obvious Trump trade is to own Russian and...
- Source, CNBC
Monday, November 14, 2016
Marc Faber on why commodity prices will rise, oil to hit $70 soon
Long-depressed commodity prices are set to finally head higher for two key reasons, Marc Faber, the publisher of the Gloom, Boom & Doom report, told CNBC.
It all boiled down to the need for infrastructure, said Faber, who is also known as Dr. Doom for his usually pessimistic views.
"The need for infrastructure in Asia is huge. They have to build roads. You go to Jakarta, Manila, the infrastructure is a catastrophe," he told CNBC's "Street Signs," adding that to accommodate tourists, Asian countries needed to build airports and railways. "You cannot ship that many people by airplanes. There's no space."
The second reason commodity prices were set to rise was because
"In the western world, they believe — I'm not saying it's the right belief — but the belief among economists and the neo-Keynesian and the interventionists is that monetary policy alone cannot lift the global economy out of its slow growth mode," he said. "So they have to go and build infrastructure and boost
That was also set to send commodity prices higher, he said.
"This combination of infrastructure in emerging economies and infrastructure spending in the developed economies of the U.S.
When it comes to one particular commodity – crude oil - Faber also pointed to economic growth in emerging Asia as boosting prices, adding that oil could easily test $70 a barrel in the not too distant future.
U.S. oil futures were down 0.55 percent at $50.57 a barrel, while Brent futures were off 0.41 percent at $51.58 at 11:42 a.m. HK/SIN.
- Source, CNBC
Friday, November 11, 2016
Dr Doom Marc Faber sees Trump win as boom for commodities and Russian assets
He said that there is another notable trade investors should be eyeing in connection with the Trump win.
"The obvious trade with a Trump victory is to own Russian and Kazakhstan assets — bonds and equities," Faber said. "That is the obvious trade for the simple reason that Mr. Trump has a more benign view of the world and respects the perspective of foreign leaders."
As for the Trans-Pacific Partnership, which Trump has notoriously opposed over the course of the presidential race, Faber believes it is off the table.
"But," he noted, "many Asian countries were not all that much in favor of TPP to start with ... so I don't think that it's a negative."
Faber said nowadays, Asia is "China-centric" — in ot
Trump's stance on China has been largely negative over the course of his campaign. His seven-point trade plan promises to bring trade cases against the Asian nation and accuses it of currency manipulation, among other claims.
The Republican won the office of president Wednesday morning after a highly contested and polarizing race against his Democratic opponent, Hillary Clinton.
- Source, CNBC
Thursday, November 3, 2016
This is Going to End Badly, Buy Gold Now
Most assets by traditional valuations are overpriced. Now are they overpriced compared to zero interest rates or negative interest rates? If you take the 10-year German bonds or the 10-year Swiss bonds or the 10-year Japanese bonds, you have no or negative yield. But you can buy equities that give you a dividend yield of 2 percent or more. Then you say stocks compared to negative interest rates are a bargain.
But they are not cheap by traditional valuation methods.
However, I think it’s dangerous for someone to say: “We all agree that it will end badly, so we keep 100 percent of our money in cash.” First, you have to decide which cash.
Number two, we don’t know what the time frame until it ends badly is. And in an extreme money-printing environment, the Dow Jones Industrial Average can go to 100,000.
But they are not cheap by traditional valuation methods.
However, I think it’s dangerous for someone to say: “We all agree that it will end badly, so we keep 100 percent of our money in cash.” First, you have to decide which cash.
Number two, we don’t know what the time frame until it ends badly is. And in an extreme money-printing environment, the Dow Jones Industrial Average can go to 100,000.
It may likely not go up against precious metals, but it can go up in nominal terms endlessly. It’s not going to help the typical household. I have seen many hyperinflating economies, and in each case, the standard of living of average people declined.
That will be the case. If I were interventionist—which I’m not, and I do not support the interventionist—if I were a central banker and I said to myself the right policy now is to increase the negativity of interest rates, we go from 0.5 percent negative to 5 percent negative.
In this particular instance, the people and companies take the money out of the financial system and store it in cash in a vault.
That will be the case. If I were interventionist—which I’m not, and I do not support the interventionist—if I were a central banker and I said to myself the right policy now is to increase the negativity of interest rates, we go from 0.5 percent negative to 5 percent negative.
In this particular instance, the people and companies take the money out of the financial system and store it in cash in a vault.
- Source, Epoch Times
Sunday, October 30, 2016
Central Banksters Created Our Problems, Not the Rich
It’s nonsense to claim that inflation is only going up 1 percent per year in the United States. The cost of living of a typical family is going up much more than that—insurance, transportation, schooling are all going up.
For example, health care premiums for insurance policies [are rising], so the typical household is being squeezed. The central banks don’t care about that; they don’t look at it.
I suppose the system will collapse before we become like Venezuela. In the West, if they start to print money, the end game will be brief. Within five years, I expect the system to implode.
You better ask the bureaucrats what their plans are. They had zero rates since December 2008; soon eight years [passed], and that hasn’t boosted economic activity for the average household, not in Japan nor the United States nor the EU. Now they talk about fiscal spending.
We already have large deficits but no deficit is large enough for the interventionist, so they will boost fiscal spending. They will finance deficits by issuing government debt, which the central banks will monetize. The Treasury will issue debt, and then the Fed will buy all these debts. Of course, that will not end well, but it will postpone the problem for a while.
Then they will find some academics who will blame wealth inequality on the evil capitalists who made so much money out of asset bubbles.
They will blame the economic woes on these people. To some extent this is true. But the rich people did not create the inflated asset values; it was the central banks, by slashing interest rates to zero and negative interest rates in many countries.
First, you create mispricings through artificially low rates and negative interest rates and you boost the income and wealth of the super-rich. It’s at best the 0.1 percent that really benefit from asset inflation, at the cost of all the people that have no assets and so you have this rising wealth inequality. So we have to tax the rich people and tax them more.
Taking money from the rich is appealing if you go to voters, and you say to them, “Look, the reason the economy is doing so badly, it’s because of the rich people, the billionaires. We have to take 20 percent away from them and give it to you.” You can be sure that everybody will vote for that because the wealthy are a minority. This is what happens after monetary policies completely fail.
Some well-connected people will hide their wealth but a lot of people won’t. Even if they take 50 percent from the richest, it’s not going to help. The next step will be to take money from less wealthy people; the interventionists will go all the way.
For example, health care premiums for insurance policies [are rising], so the typical household is being squeezed. The central banks don’t care about that; they don’t look at it.
I suppose the system will collapse before we become like Venezuela. In the West, if they start to print money, the end game will be brief. Within five years, I expect the system to implode.
You better ask the bureaucrats what their plans are. They had zero rates since December 2008; soon eight years [passed], and that hasn’t boosted economic activity for the average household, not in Japan nor the United States nor the EU. Now they talk about fiscal spending.
We already have large deficits but no deficit is large enough for the interventionist, so they will boost fiscal spending. They will finance deficits by issuing government debt, which the central banks will monetize. The Treasury will issue debt, and then the Fed will buy all these debts. Of course, that will not end well, but it will postpone the problem for a while.
Then they will find some academics who will blame wealth inequality on the evil capitalists who made so much money out of asset bubbles.
They will blame the economic woes on these people. To some extent this is true. But the rich people did not create the inflated asset values; it was the central banks, by slashing interest rates to zero and negative interest rates in many countries.
First, you create mispricings through artificially low rates and negative interest rates and you boost the income and wealth of the super-rich. It’s at best the 0.1 percent that really benefit from asset inflation, at the cost of all the people that have no assets and so you have this rising wealth inequality. So we have to tax the rich people and tax them more.
Taking money from the rich is appealing if you go to voters, and you say to them, “Look, the reason the economy is doing so badly, it’s because of the rich people, the billionaires. We have to take 20 percent away from them and give it to you.” You can be sure that everybody will vote for that because the wealthy are a minority. This is what happens after monetary policies completely fail.
Some well-connected people will hide their wealth but a lot of people won’t. Even if they take 50 percent from the richest, it’s not going to help. The next step will be to take money from less wealthy people; the interventionists will go all the way.
- Source, The Epoch Times
Thursday, October 27, 2016
Marc Faber: Dow Could Reach 100,000
They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism, which is state ownership of production and consumption. You would have that, yes, that they can do.
The BoJ owns more than 50 percent of Japanese ETFs (exchange traded funds), which own large parts of the underlying companies. So indirectly they may own 20 percent of the Japanese companies, and they can go up to a higher level.
I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present. They focus on inflation but in my view they shouldn’t do anything. They don’t focus enough on what it does to the average standard of living of the people, to the average household income.
The developed market central banks can go on for quite some time.If Zimbabwe prints money, the pain is more obvious right away because if you are Zimbabwe, and you print money and the others don’t, and the currency collapses, and you feel the pain much sooner.
If the major central banks, the Fed, the European Central Bank (ECB), the BoJ, the Bank of England, and the Chinese monetize and print money in concert and agreement with each other, they all talk to each other; then the currencies don’t collapse against each other. There may be fluctuations, but we don’t have a general collapse of a currency.
Paper money, in general, can then collapse, and it has to a large extent against asset prices like real estate around the world over the last 30 years, against equity prices, against bond prices—which have been rallying since 1981—and against precious metals since 1999.
Asset price inflation is less obvious to the average person in the street. The average American has no money, so he doesn’t care if prices for paintings and real estate go up—until it touches him.
The BoJ owns more than 50 percent of Japanese ETFs (exchange traded funds), which own large parts of the underlying companies. So indirectly they may own 20 percent of the Japanese companies, and they can go up to a higher level.
I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present. They focus on inflation but in my view they shouldn’t do anything. They don’t focus enough on what it does to the average standard of living of the people, to the average household income.
The developed market central banks can go on for quite some time.If Zimbabwe prints money, the pain is more obvious right away because if you are Zimbabwe, and you print money and the others don’t, and the currency collapses, and you feel the pain much sooner.
If the major central banks, the Fed, the European Central Bank (ECB), the BoJ, the Bank of England, and the Chinese monetize and print money in concert and agreement with each other, they all talk to each other; then the currencies don’t collapse against each other. There may be fluctuations, but we don’t have a general collapse of a currency.
Paper money, in general, can then collapse, and it has to a large extent against asset prices like real estate around the world over the last 30 years, against equity prices, against bond prices—which have been rallying since 1981—and against precious metals since 1999.
Asset price inflation is less obvious to the average person in the street. The average American has no money, so he doesn’t care if prices for paintings and real estate go up—until it touches him.
- Source, The Epoch Times
Sunday, October 23, 2016
Central Banks Doomed to Fail, as Fed, BOJ Decisions Come Under Microscope
Central bankers trying to spur growth are like alchemists trying to make gold and they're just as likely to fail, said Marc Faber, the publisher of the Gloom, Boom & Doom report.
"When I think of central banks, I think of alchemists," Faber, also known as Dr. Doom for his pessimistic views, told CNBC's "Squawk Box" on Thursday.
"They were trying to mix all kinds of powders and chemicals to produce essentially gold. And they all failed," he said, although he noted that some alchemists did produce other useful chemicals during their ill-fated search for the precious metal.
"But the central banks are just mixing water, in other words, paper money, and the results cannot be a favourable outcome in the long run."
Faber noted that from the 1970s to the mid-1980s, people believed inflation was "forever," but now the same central banks that were fighting inflation were now fighting deflation. This fight was a mistake, he said, claiming that across Asia, price rises were exceeding income gains.
"It's possible that suddenly inflationary pressures will be there, that central banks should then act but they cannot because the system is so overleveraged," he said.
At the same time, Faber noted that the low and negative interest rates globally were hurting pension funds.
"Pension funds, even in these beautiful years of returns, 2009 to today, they have become less funded, they have become more underfunded," he said. "With interest rates at zero and this low, their portion that's in bonds is never going to meet the expected returns of 7.5 percent. It's physically not possible."
This would spell "big trouble" for the pension fund sector and thus workers' retirement funds, Faber cautioned.
That potential outcome was part of Faber's thesis for one of his long-time favorite investment options: Gold.
Faber doesn't expect the major global central banks to raise interest rates above the rate of cost of living increases.
"They are going to continue to print money and the Fed's balance sheet and the other central banks' balance sheets will continue to grow until the whole system collapses and then you and I in gold assets will be better off than in paper assets," he said.
"When I think of central banks, I think of alchemists," Faber, also known as Dr. Doom for his pessimistic views, told CNBC's "Squawk Box" on Thursday.
"They were trying to mix all kinds of powders and chemicals to produce essentially gold. And they all failed," he said, although he noted that some alchemists did produce other useful chemicals during their ill-fated search for the precious metal.
"But the central banks are just mixing water, in other words, paper money, and the results cannot be a favourable outcome in the long run."
Faber noted that from the 1970s to the mid-1980s, people believed inflation was "forever," but now the same central banks that were fighting inflation were now fighting deflation. This fight was a mistake, he said, claiming that across Asia, price rises were exceeding income gains.
"It's possible that suddenly inflationary pressures will be there, that central banks should then act but they cannot because the system is so overleveraged," he said.
At the same time, Faber noted that the low and negative interest rates globally were hurting pension funds.
"Pension funds, even in these beautiful years of returns, 2009 to today, they have become less funded, they have become more underfunded," he said. "With interest rates at zero and this low, their portion that's in bonds is never going to meet the expected returns of 7.5 percent. It's physically not possible."
This would spell "big trouble" for the pension fund sector and thus workers' retirement funds, Faber cautioned.
That potential outcome was part of Faber's thesis for one of his long-time favorite investment options: Gold.
Faber doesn't expect the major global central banks to raise interest rates above the rate of cost of living increases.
"They are going to continue to print money and the Fed's balance sheet and the other central banks' balance sheets will continue to grow until the whole system collapses and then you and I in gold assets will be better off than in paper assets," he said.
- Source, CNBC
Thursday, October 20, 2016
Monday, October 17, 2016
Faber: Gold Isn't Down as Much as Apple
- Source, Bloomberg
Friday, October 14, 2016
Marc Faber: Central Banks Not Out of Bullets
- Source, CNBC
Monday, October 10, 2016
No Safe Haven Left, Gov't Wasting Money
- Source, Bloomberg
Thursday, October 6, 2016
Extreme Money Printing Will Inflate Dow to 100,000
Investment guru Marc Faber, famous for his dire predictions, thinks the Dow Jones Industrial Average could eventually soar to 100,000. Thursday, it closed near 18,240.
But in character with his “Dr. Doom” persona, the publisher of the Gloom Boom & Doom Report newsletter, it won’t be pretty.
“In an extreme money-printing environment, the Dow Jones Industrial Average can go to 100,000,” Faber said in a recent interview with the Epoch Times.
He has long been a critic of global central banks, alleging that policymakers are manipulating the markets.
“So the madness in the present time may go on. In a manipulated market, it won’t end well, but you don’t know when it will not end well, and how far the manipulation can last,” he said.
“They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism, which is state ownership of production and consumption. I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present,” he said.
“I suppose the system will collapse before we become like Venezuela. In the West, if they start to print money, the end game will be brief. Within five years, I expect the system to implode.”
Faber isn't alone in predicting extreme volatility for the markets.
For his part, billionaire investor Mark Cuban says he has his "Trump hedge on," predicting stock market chaos if GOP presidential nominee Donald Trump wins the election.
In a recent interview on Fox Business anchor Neil Cavuto's show "Coast to Coast," the "Sharktank" reality TV personality warns: "In the event Donald wins, I have no doubt in my mind the market tanks."
Cuban explained that there "are so many external global influences" on the market. "You know, what money comes here when there is uncertainty overseas, what money goes into Treasurys, where does money go if rates go higher or lower?"
And then there's the November presidential election.
"I have my Trump hedge on," asserting "if the polls look like there's a decent chance Donald could win," he'd "put a hedge on" that's worth "over 100 percent of my equity positions and my bond position, as well, that protects me just in case he wins."
Other prominent financial experts aren't so pessimistic.
"Is there a recession around the corner? I don't see it," Yardeni, the president of independent firm Yardeni Research, told CNBC recently. Even as speculation abounds over the Federal Reserve's timing on tightening monetary policy, the market bull believes the trend is still up.
"The bottom line here is even if the Fed [hikes] in June, we are still talking about historically low interest rates," he told CNBC. "I do think that the dollar will continue to strengthen, and I do think some of the panic and concerns about the commodity markets were overdone at the beginning of the year."
But in character with his “Dr. Doom” persona, the publisher of the Gloom Boom & Doom Report newsletter, it won’t be pretty.
“In an extreme money-printing environment, the Dow Jones Industrial Average can go to 100,000,” Faber said in a recent interview with the Epoch Times.
He has long been a critic of global central banks, alleging that policymakers are manipulating the markets.
“So the madness in the present time may go on. In a manipulated market, it won’t end well, but you don’t know when it will not end well, and how far the manipulation can last,” he said.
“They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism, which is state ownership of production and consumption. I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present,” he said.
“I suppose the system will collapse before we become like Venezuela. In the West, if they start to print money, the end game will be brief. Within five years, I expect the system to implode.”
Faber isn't alone in predicting extreme volatility for the markets.
For his part, billionaire investor Mark Cuban says he has his "Trump hedge on," predicting stock market chaos if GOP presidential nominee Donald Trump wins the election.
In a recent interview on Fox Business anchor Neil Cavuto's show "Coast to Coast," the "Sharktank" reality TV personality warns: "In the event Donald wins, I have no doubt in my mind the market tanks."
Cuban explained that there "are so many external global influences" on the market. "You know, what money comes here when there is uncertainty overseas, what money goes into Treasurys, where does money go if rates go higher or lower?"
And then there's the November presidential election.
"I have my Trump hedge on," asserting "if the polls look like there's a decent chance Donald could win," he'd "put a hedge on" that's worth "over 100 percent of my equity positions and my bond position, as well, that protects me just in case he wins."
Other prominent financial experts aren't so pessimistic.
"Is there a recession around the corner? I don't see it," Yardeni, the president of independent firm Yardeni Research, told CNBC recently. Even as speculation abounds over the Federal Reserve's timing on tightening monetary policy, the market bull believes the trend is still up.
"The bottom line here is even if the Fed [hikes] in June, we are still talking about historically low interest rates," he told CNBC. "I do think that the dollar will continue to strengthen, and I do think some of the panic and concerns about the commodity markets were overdone at the beginning of the year."
- Source, News Max
US Economy is Like BOTOX, Looks Fine Only on the Outside
Marc Faber breaks down why he thinks Hillary Clinton is the worst candidate running for president in US history. He believes she will be a disaster for the entire world and lead us into a global conflict. In addition to this, he breaks down the current state of the failing economy.
Monday, October 3, 2016
The Risk of Global Collapse
Sunday, October 2, 2016
Marc Faber Says Central Banks Doomed to Fail
Central bankers trying to spur growth are like alchemists trying to make gold and they're just as likely to fail, said Marc Faber, the publisher of the Gloom, Boom & Doom report.
"When I think of central banks, I think of alchemists," Faber, also known as Dr. Doom for his pessimistic views, told CNBC's "Squawk Box" on Thursday. "They were trying to mix all kinds of powders and chemicals to produce essentially gold. And they all failed," he said, although he noted that some alchemists did produce other useful chemicals during their ill-fated search for the precious metal. "But the central banks are just mixing water, in other words, paper money, and the results cannot be a favourable outcome in the long run."
Faber noted that from the 1970s to the mid-1980s, people believed inflation was "forever," but now the same central banks that were fighting inflation were now fighting deflation.
This fight was a mistake, he said, claiming that across Asia, price rises were exceeding income gains. "It's possible that suddenly inflationary pressures will be there, that central banks should then act but they cannot because the system is so overleveraged," he said.
At the same time, Faber noted that the low and negative interest rates globally were hurting pension funds. "Pension funds, even in these beautiful years of returns, 2009 to today, they have become less funded, they have become more underfunded," he said. "With interest rates at zero and this low, their portion that's in bonds is never going to meet the expected returns of 7.5 percent.
It's physically not possible." This would spell "big trouble" for the pension fund sector and thus workers' retirement funds, Faber cautioned.
- Source
Sunday, September 18, 2016
Why Marc Faber is calling for an ugly stock market crash
Here’s the bad news: The Swiss investor, who publishes the aptly named Gloom, Boom & Doom Report, sees the large-cap benchmark SPX, -0.11% shedding more than half its value, possibly over the next year.
“When it unravels, we are going to go to 1,100 on the S&P 500,” Faber told MarketWatch.
“Maybe we go first to 2,300, then we would have a perfect topping formation. A widening-top formation is about the most bearish technical formation you can have,” he said. Faber is referring to a so-called megaphone pattern, or broadening formation, which usually is associated with a sharp reversal in an upward trend for a security.
Faber has grown increasingly pessimistic as U.S.stocks have climbed over the past several weeks.
The S&P 500 has advanced about 4% from 2,096 on June 10 when MarketWatch last spoke to Faber. And on Tuesday, the Nasdaq Composite Index COMP, -0.08% marked a record close (its second of 2016), while the Dow Jones Industrial Average DJIA, -0.07% and the S&P 500 were mostly quiescent but in positive territory.
His ursine-daubed call shouldn’t be a surprise to market participants who have followed him over the years. The 70-year-old investor has been critical of global central banks and negative on the U.S. economy, lately.
So, why should investors listen to Faber?
For one, the Swiss investor’s concerns about central bank’s propping up global economies and distorting markets echo legitimate worries expressed by smart-money investors like bond guru Bill Gross of Janus Capital.
Now, the Bank of England can be added to the list of central banks rolling out accommodative policies.
Last Thursday, the BOE revived a dormant bond-buying program and cut its interest rate to 0.25%—marking its lowest level in more than three centuries. Similar to the Federal Reserve, the BOE had been viewed as preparing to tighten monetary policy. That changed when the U.K. surprisingly voted on June 23 to exit the European Union, briefly roiling global markets.
The BOE finds itself, presently, on unsteady footing at the same time the European Central Bank and Bank of Japan are jousting with anemic growth of their own.
Faber said central banks“printing money” is a recipe for carnage that could result in “ five years of capital gains” being coughed up by the market. And if we give that back, “we’re around 1,100,” he said.
“We’re all on the Titanic.” Faber said. “When things unravel a colossal asset inflation” will burst.
Faber also gives voice to some of the persistent concerns shared by a host of investors and strategists that argue that the fundamentals of the stock market don't justify its current run-up in price.
“Maybe we go first to 2,300, then we would have a perfect topping formation. A widening-top formation is about the most bearish technical formation you can have,” he said. Faber is referring to a so-called megaphone pattern, or broadening formation, which usually is associated with a sharp reversal in an upward trend for a security.
Faber has grown increasingly pessimistic as U.S.
The S&P 500 has advanced about 4% from 2,096 on June 10 when MarketWatch last spoke to Faber. And on Tuesday, the Nasdaq Composite Index COMP, -0.08% marked a record close (its second of 2016), while the Dow Jones Industrial Average DJIA, -0.07% and the S&P 500 were mostly quiescent but in positive territory.
His ursine-daubed call shouldn’t be a surprise to market participants who have followed him over the years. The 70-year-old investor has been critical of global central banks and negative on the U.S. economy, lately.
So, why should investors listen to Faber?
For one, the Swiss investor’s concerns about central bank’s propping up global economies and distorting markets echo legitimate worries expressed by smart-money investors like bond guru Bill Gross of Janus Capital.
Now, the Bank of England can be added to the list of central banks rolling out accommodative policies.
Last Thursday, the BOE revived a dormant bond-buying program and cut its interest rate to 0.25%—marking its lowest level in more than three centuries. Similar to the Federal Reserve, the BOE had been viewed as preparing to tighten monetary policy. That changed when the U.K. surprisingly voted on June 23 to exit the European Union, briefly roiling global markets.
The BOE finds itself, presently, on unsteady footing at the same time the European Central Bank and Bank of Japan are jousting with anemic growth of their own.
Faber said central banks“printing money” is a recipe for carnage that could result in “ five years of capital gains” being coughed up by the market. And if we give that back, “we’re around 1,100,” he said.
“We’re all on the Titanic.” Faber said. “When things unravel a colossal asset inflation” will burst.
Faber also gives voice to some of the persistent concerns shared by a host of investors and strategists that argue that the fundamentals of the stock market don't justify its current run-up in price.
- Source, Market Watch
Wednesday, September 14, 2016
Alan Greenspan And Marc Faber Agree The Fed Has Reached Zero Hour
Dr. Marc Faber (PhD in economics, with honors) also known as “Doctor Doom” and publisher of “The Gloom, Boom, and Doom Report.” Alan Greenspan, probably the most loved and successful Fed Chairman in history during the 18 years from 1987 to 2006, a good time for American business and markets. You would think that these two would fight like cats and dogs over just about anything to do with the markets and the economy anytime, anywhere.
These are two smart people. Faber advised clients to get out of stocks before the 1987 crash. In the 2000s, he predicted the rise in oil, gold and commodities in general, and the boom in China. He also predicted the decline in the US dollar since 2002 and also the shorter term dramatic rebound in 2008. He can be wrong (or maybe early) as in his call for a US recession in 2013, but he is right way more than he is wrong.
As for Greenspan, his era at the Fed is thought of as what the Fed was supposed to be, a modulator of cycles and protector of savings. There were nothing but mild recessions for those 18 years. One overall measure of his success is to simply consider the price of gold in 1987 at his start at the Fed and in 2005 at its end – both right at $400 an ounce. One of his famous quotes is,
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”
There was no big “gold standard” debate back then simply because Greenspan had us on a de-facto gold standard anyway...
These are two smart people. Faber advised clients to get out of stocks before the 1987 crash. In the 2000s, he predicted the rise in oil, gold and commodities in general, and the boom in China. He also predicted the decline in the US dollar since 2002 and also the shorter term dramatic rebound in 2008. He can be wrong (or maybe early) as in his call for a US recession in 2013, but he is right way more than he is wrong.
As for Greenspan, his era at the Fed is thought of as what the Fed was supposed to be, a modulator of cycles and protector of savings. There were nothing but mild recessions for those 18 years. One overall measure of his success is to simply consider the price of gold in 1987 at his start at the Fed and in 2005 at its end – both right at $400 an ounce. One of his famous quotes is,
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”
There was no big “gold standard” debate back then simply because Greenspan had us on a de-facto gold standard anyway...
- Source, Forbes
Sunday, September 11, 2016
The current system in the developed markets is not sustainable
The global balance of economic power has notably shifted over the past decade.
Now emerging and developing economies account for almost 60% of global gross domestic product (GDP).
Understanding the full scope of these changes, and the new roles of these participants in the global economy, is essential for investors looking to position their portfolios for the future.
Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, shared his perspective on these shifting dynamics along with his concerns that policy makers have increased the risk of unintended economic consequences, at the 2016 Financial Analysts Seminar in Chicago.
China occupies an important space in the current economic landscape. The country embraced the infrastructure growth model to catapult itself into a high-growth phase — following the examples set by Japan starting in 1950 and the Asian Tiger economies of South Korea, Taiwan, and Singapore in the 1960s and 1970s — and it has been the driver of substantial economic activityfor other emerging market countries, especially in Asia and Africa. The Export-Import Bank of China overtook the World Bank in 2011 as the biggest lender to sub-Saharan Africa, and China is the leading financier of infrastructure projects on the African continent.
Tourism spending has created additional economic links between China and other countries. Outbound tourism expenditures from China reached US$215 billion in 2015, which was a 53% increase over the total recorded by the World Travel &Tourism Council (WTTC) in the previous year. China’s increased travel spending boosted economic activity in other countries in the region, including a “mini-boom” in money spent by foreign visitors in Japan. During his presentation, Faber estimated that China contributed around 130 million outbound tourists each year to the global economy.
As a key driver of economic activityfor emerging markets, what happens if China’s economy stumbles? According to some reports, shadow banking activity, characterized as less-regulated lending that could pose a higher risk of default, accounts for as much as two-thirds of China’s economy. Even regulated lending could pose substantial risks: According to Faber, banks in China don’t write-off bad loans, and eventually the chickens will come home to roost. He was quick to emphasize, however, that other Asian nations are ready to pick up the baton if China falls short.
As the emerging market economies in Asia have developed, they have built up their own domestic needs and capabilities. The increased consumer demand within these countries has created investment opportunities for regional partners: In the first seven months of 2016, the three largest sources of foreign direct investment in Vietnam were South Korea, Singapore, and Japan. While productivity in developed markets has stagnated due to excessive regulation and rising levels of unproductive debt, productivity is booming in Asia.
Faber said the current system in the developed markets is not sustainable and will come to a bad end. He declared that the change in hours of work needed to buy one unit of the S&P 500 composite — which climbed from 20 hours in the 1960s to almost 100 today — was evidence of the massive wealth inequality created by monetary policy that has made it more difficult for those on the lower rungs of the economic ladder to climb up.
Faber takes a dim view of central bank activities that have led to a substantial increase in the size of their balance sheets. Although central banks can continue these policies indefinitely, he noted that eventually they will own everything, resulting in backdoor socialism. The present-day reality of central bank activity is that stock market capitalizations relative to GDP are way above historical averages. Consequently, Faber thinks that US investors will be lucky to earn 1% or 2% returns per year.
With so much latent risk in the financial system, one might be tempted to shift substantial amounts of a portfolio to cash. But even cash is risky today. “Cash is the safest investment in normal times,” said Faber. “However, today the most dangerous asset is cash. Cash in bank accounts may be worthless like in Cyprus,” referring to the possibility of a state-imposed bail-in putting deposits at risk.
Now emerging and developing economies account for almost 60% of global gross domestic product (GDP).
Understanding the full scope of these changes, and the new roles of these participants in the global economy, is essential for investors looking to position their portfolios for the future.
Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, shared his perspective on these shifting dynamics along with his concerns that policy makers have increased the risk of unintended economic consequences, at the 2016 Financial Analysts Seminar in Chicago.
China occupies an important space in the current economic landscape. The country embraced the infrastructure growth model to catapult itself into a high-growth phase — following the examples set by Japan starting in 1950 and the Asian Tiger economies of South Korea, Taiwan, and Singapore in the 1960s and 1970s — and it has been the driver of substantial economic activity
Tourism spending has created additional economic links between China and other countries. Outbound tourism expenditures from China reached US$215 billion in 2015, which was a 53% increase over the total recorded by the World Travel &
As a key driver of economic activity
As the emerging market economies in Asia have developed, they have built up their own domestic needs and capabilities. The increased consumer demand within these countries has created investment opportunities for regional partners: In the first seven months of 2016, the three largest sources of foreign direct investment in Vietnam were South Korea, Singapore, and Japan. While productivity in developed markets has stagnated due to excessive regulation and rising levels of unproductive debt, productivity is booming in Asia.
Faber said the current system in the developed markets is not sustainable and will come to a bad end. He declared that the change in hours of work needed to buy one unit of the S&P 500 composite — which climbed from 20 hours in the 1960s to almost 100 today — was evidence of the massive wealth inequality created by monetary policy that has made it more difficult for those on the lower rungs of the economic ladder to climb up.
Faber takes a dim view of central bank activities that have led to a substantial increase in the size of their balance sheets. Although central banks can continue these policies indefinitely, he noted that eventually they will own everything, resulting in backdoor socialism. The present-day reality of central bank activity is that stock market capitalizations relative to GDP are way above historical averages. Consequently, Faber thinks that US investors will be lucky to earn 1% or 2% returns per year.
With so much latent risk in the financial system, one might be tempted to shift substantial amounts of a portfolio to cash. But even cash is risky today. “Cash is the safest investment in normal times,” said Faber. “However, today the most dangerous asset is cash. Cash in bank accounts may be worthless like in Cyprus,” referring to the possibility of a state-imposed bail-in putting deposits at risk.
- Source
Thursday, September 8, 2016
Monday, September 5, 2016
Friday, September 2, 2016
China's Unwind Will Be a Disaster
- Source
Tuesday, August 30, 2016
Marc Faber: I Will Never Sell My Gold
- Source
Saturday, August 27, 2016
Marc Faber: Tesla shares are going to $0
"What they produce can be produced by Mercedes, BMW, Toyota, Nissan. Anybody in the world can make it eventually, at much lower cost and probably much more efficiently," Faber said Monday on CNBC's "Trading Nation."
"The market for Toyota and these large automobile companies is simply not big enough, but the moment it becomes bigger, they'll move into the field and then Tesla will have a lot of competition."
Faber sees this increased competition causing more than a small dent in the company's business and stock performance.
"I think Tesla is a company that is likely to go to zero eventually," Faber said.
Last week, Bloomberg reported that Mercedes-Benz is entering the electric game in a big way, as it sets to unveil two electric SUVs and two electric sedans under a new line. And in a recent ad, BMW, which makes its own electric cars, tweaked Tesla for making drivers wait around for their vehicles in a recent ad.
Recently, Tesla business development executive Diarmuid O'Connell dismissed the company's competitors as having "delivered little more than appliances," in contrast to Tesla's ground-up method of rethinking how cars are powered and driven, according to Automotive News.
For Faber, the strategy of shorting Tesla is merely a part of his bearish approach to the market. On Monday, he recommended that "if you are an investor with a lot of nerves and you sleep well at night anyway, then you could hedge the portfolio somewhat by selling short some stocks that are overvalued and are likely to go down" — providing Tesla as an example.
- Source, CNBC
Wednesday, August 24, 2016
Marc Faber: S&P is set to crash 50%, giving back 5 years of gains
The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC's "Trading Nation" that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history.
"I think we can easily give back five years of capital gains, which would take the market down to around 1,100," Faber said, referring to a level 50 percent below Monday's closing on the S&P 500.
In fact, stocks would need to fall by at least that much in order for some of Faber's calls to be proven correct. In October 2009, when the S&P was trading near 1,100, Faber said on Indian CNBC-TV18 that U.S.and Indian stocks were "very overbought" and "the gravy's out" on the rally.
Since then, Faberhas generally only become
When pressed on what could cause thedecline he
"The fact is, the market hasn't really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It's not that many stocks that have been making new highs. It's quite a narrow growth of stocks that have been very strong," he said.
In fact, market breadth has broadened substantially, and as of Monday's close, 48 percent of thestocks
"I think we can easily give back five years of capital gains, which would take the market down to around 1,100," Faber said, referring to a level 50 percent below Monday's closing on the S&P 500.
In fact, stocks would need to fall by at least that much in order for some of Faber's calls to be proven correct. In October 2009, when the S&P was trading near 1,100, Faber said on Indian CNBC-TV18 that U.S.
Since then, Faber
When pressed on what could cause the
"The fact is, the market hasn't really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It's not that many stocks that have been making new highs. It's quite a narrow growth of stocks that have been very strong," he said.
In fact, market breadth has broadened substantially, and as of Monday's close, 48 percent of the
- Source, CNBC
Friday, August 12, 2016
Tuesday, August 9, 2016
Saturday, August 6, 2016
Marc Faber: Trump Is Highly Qualified for President
- Source
Wednesday, August 3, 2016
Marc Faber: Invest in Gold, Treasuries
While Marc Faber isn’t bearish on global stocks, the Swiss investor is looking to other areas of the market for a place to make money: Gold and U.S. government debt.
“[Gold] been a very good investment since 1999,” Faber told the FOX Business Network’s Trish Regan. “[It’s] much better than the S&P 500 and much better than tech stocks in the U.S. Certainly over the last six months nobody can accuse me of having been wrong to buy gold.”
Faber, who is the publisher of “The Boom, Gloom & Doom Report,” also recommended buying Treasury bonds, despite a recent plunge in the yield after last week’s Brexit vote.
He also said he is certain there will be more quantitative easing from the Federal Reserve, in part due to the U.S. presidential election.
“Both candidates for the presidency will increase the deficit meaningfully,” he remarked. “And that will require the Fed to buy more paper that is issued by the Treasury.” He added, “in the long run, most governments in the Western world, if they had to account like a corporation, would be bankrupt. And so more money printing will become a necessity.”
“[Gold] been a very good investment since 1999,” Faber told the FOX Business Network’s Trish Regan. “[It’s] much better than the S&P 500 and much better than tech stocks in the U.S. Certainly over the last six months nobody can accuse me of having been wrong to buy gold.”
Faber, who is the publisher of “The Boom, Gloom & Doom Report,” also recommended buying Treasury bonds, despite a recent plunge in the yield after last week’s Brexit vote.
He also said he is certain there will be more quantitative easing from the Federal Reserve, in part due to the U.S. presidential election.
“Both candidates for the presidency will increase the deficit meaningfully,” he remarked. “And that will require the Fed to buy more paper that is issued by the Treasury.” He added, “in the long run, most governments in the Western world, if they had to account like a corporation, would be bankrupt. And so more money printing will become a necessity.”
- Source, Fox Business
Sunday, July 31, 2016
Thursday, July 28, 2016
Faber: Brexit has Nothing to Do with Economies Around the World
Fear about a possible global recession continues to swirl following the United Kingdom’s decision to exit the European Union.
Marc Faber, Swiss investor and editor of the ‘Gloom, Boom & Doom Report’, thinks there has been an overreaction to the news.
“The markets are going down because the economic news globally is unfavorable,” Faber told the FOX Business Network’s Connell McShane. “We’re moving into a recession that has nothing to do with Brexit.”
Faber added: “I do not think that it’s as dramatic as the market reaction has been. “It’s just been that the market participants believe that to stay in the EU would be favorable, and to leave would be unfavorable."
The Swiss investor compared the current situation between the U.K. and the EU to Switzerland’s historic fight for its own freedom.
“In the 13th century we fought the Habsburg Empire to be free and not to have foreign justice and foreign laws and not to pay taxes to foreign overlords,” he explained. “This is precisely what the EU does with all the countries. They want to impose courts of justice, taxes, regulations, new laws and most of which inhibit economic growth. This is a victory for freedom and for people, the Brits.”
Faber also said the Brexit will be the “perfect excuse” for global central banks to “coordinate the monetary policies to print even more money.”
Marc Faber, Swiss investor and editor of the ‘Gloom, Boom & Doom Report’, thinks there has been an overreaction to the news.
“The markets are going down because the economic news globally is unfavorable,” Faber told the FOX Business Network’s Connell McShane. “We’re moving into a recession that has nothing to do with Brexit.”
Faber added: “I do not think that it’s as dramatic as the market reaction has been. “It’s just been that the market participants believe that to stay in the EU would be favorable, and to leave would be unfavorable."
The Swiss investor compared the current situation between the U.K. and the EU to Switzerland’s historic fight for its own freedom.
“In the 13th century we fought the Habsburg Empire to be free and not to have foreign justice and foreign laws and not to pay taxes to foreign overlords,” he explained. “This is precisely what the EU does with all the countries. They want to impose courts of justice, taxes, regulations, new laws and most of which inhibit economic growth. This is a victory for freedom and for people, the Brits.”
Faber also said the Brexit will be the “perfect excuse” for global central banks to “coordinate the monetary policies to print even more money.”
- Source
Monday, July 25, 2016
Marc Faber: Europe is Becoming Irrelevant, Asia Taking Lead
Despite the world’s focus being centered on the upcoming Brexit vote, one investor says Europe is becoming “economically irrelevant.”
Marc Faber, editor of the “Gloom, Boom & Doom Report,” joined the FOX Business Network’s Risk & Reward and explained why he believes Europe’s economy is no longer as significant as it once was.
“The future of the world, economically, is in Asia—India, China, Indonesia and the other Southeast Asian and Indo-Chinese countries and emerging economies,” Faber said. “The Western world, relative to emerging economies,is diminishing in terms of importance—also politically and geopolitically .”
Faber also said if the U.K.decided to leave the European Union, it would send a message to the elites and bureaucrats who impose regulations that “stifle economic development.”
“An exit would be good for Britain, and it would not destroy the financial markets, quite on the contrary,” he said. “I think if Britain decided to leave the EU the stock market would rally and the British pound would rally.”
Marc Faber, editor of the “Gloom, Boom & Doom Report,” joined the FOX Business Network’s Risk & Reward and explained why he believes Europe’s economy is no longer as significant as it once was.
“The future of the world, economically, is in Asia—India, China, Indonesia and the other Southeast Asian and Indo-Chinese countries and emerging economies,” Faber said. “The Western world, relative to emerging economies,
Faber also said if the U.K.
“An exit would be good for Britain, and it would not destroy the financial markets, quite on the contrary,” he said. “I think if Britain decided to leave the EU the stock market would rally and the British pound would rally.”
- Source, Fox Business
Friday, July 22, 2016
Faber Says Another Round of QE Ahead
'Gloom, Boom & Doom' Report Publisher Marc Faber weighed in on the impact of Brexit on the global markets and economy as well as central bank policies.
Faber raised doubts about the notion that markets, at least in the U.S.,are gaining their confidence back since the U.K. vote to leave the European Union.
“Regarding the confidence, I’m not so sure because if you look at the performance of treasury bonds, they would indicate that there is a sense that the economy’s weakening and that there are problems in the financial system.Also if you look at the performance of European bank stocks, they are horrible performers,” Faber told the FOX Business Network’s Dagen McDowell.
He then predicted central banks’ reaction to Brexit globally.
“Clearly Brexit means more money printing by central banks; They will continue to intervene. And I think before the year end we’ll have some form of QE4 in the U.S.”
Faber then responded to Federal Reserve officials attaching a low probability to the risks of a potential U.S.recession in 2016.
“The Fed was fast asleep ahead of the 2007-2008 recession. So the fact that they assign a low probability to a recession doesn’t give me any comfort at all.”
Faber explained why a lack of additional quantitative easing globally could actually lead to a recession.
“I think the problem will be if there are no additional QEs around the world…is that asset prices will no longer go up and we’ve seen this already in London properties, in New York properties – and this will have a negative impact on the economy. The recession in my view is not going to come really from the economy per se, but from asset price deflation.”
Faber raised doubts about the notion that markets, at least in the U.S.,
“Regarding the confidence, I’m not so sure because if you look at the performance of treasury bonds, they would indicate that there is a sense that the economy’s weakening and that there are problems in the financial system.
He then predicted central banks’ reaction to Brexit globally.
“Clearly Brexit means more money printing by central banks; They will continue to intervene. And I think before the year end we’ll have some form of QE4 in the U.S.”
Faber then responded to Federal Reserve officials attaching a low probability to the risks of a potential U.S.
“The Fed was fast asleep ahead of the 2007-2008 recession. So the fact that they assign a low probability to a recession doesn’t give me any comfort at all.”
Faber explained why a lack of additional quantitative easing globally could actually lead to a recession.
“I think the problem will be if there are no additional QEs around the world…is that asset prices will no longer go up and we’ve seen this already in London properties, in New York properties – and this will have a negative impact on the economy. The recession in my view is not going to come really from the economy per se, but from asset price deflation.”
- Source, Fox Business
Monday, July 18, 2016
Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit
Gold’s investment case has been strengthened by the U.K.’s vote to quit the European Union as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring bullion, according to Marc Faber, publisher of the Gloom, Boom & Doom Report.
The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said.
Gold has soared after the U.K.’s vote last week as investors seek a haven from financial turmoil and contemplate the possible implications, including additional steps from central bank policy makers in Europe, the U.S. and Asia. Holdings in bullion-backed exchange-traded products have swelled to the highest level since September 2013 as banks including Goldman Sachs Group Inc. have boosted their price forecasts.
‘Print More Money’
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.”
Bullion for immediate delivery rose as much as 0.7 percent to $1,321.55 an ounce, and traded at $1,321.24 at 1:57 p.m. in Singapore, according to Bloomberg generic pricing. In the immediate aftermath of the vote on Friday prices surged to $1,358.54, the highest in more than two years.
Gold has advanced 25 percent this year as the European Central Bank and Bank of Japan embraced negative rates to kick start growth and the Fed pauses after its first hike since 2006 last December. The U.S.central bank undertook three rounds of quantitative easing starting in 2008 to overcome the impact of the global financial crisis.
The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said.
Gold has soared after the U.K.’s vote last week as investors seek a haven from financial turmoil and contemplate the possible implications, including additional steps from central bank policy makers in Europe, the U.S. and Asia. Holdings in bullion-backed exchange-traded products have swelled to the highest level since September 2013 as banks including Goldman Sachs Group Inc. have boosted their price forecasts.
‘Print More Money’
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.”
Bullion for immediate delivery rose as much as 0.7 percent to $1,321.55 an ounce, and traded at $1,321.24 at 1:57 p.m. in Singapore, according to Bloomberg generic pricing. In the immediate aftermath of the vote on Friday prices surged to $1,358.54, the highest in more than two years.
Gold has advanced 25 percent this year as the European Central Bank and Bank of Japan embraced negative rates to kick start growth and the Fed pauses after its first hike since 2006 last December. The U.S.
New Headwinds
Fed Governor Jerome Powell said Tuesday the vote has the potential to create new headwinds for economies, including the U.S., introducing uncertainties that may merit reassessing policy. Traders now see a greater probability the bank will cut rates in upcoming meetings than raise them.
Faber’s views add to a bullish chorus about bullion in the wake of the poll. The metal may stand at the start of a major bull market should the Brexit vote prove to be a forerunner of greater political and financial instability around the world, Evolution Mining Ltd.’s Jake Klein said on Tuesday.
Still, not every one is optimistic. Veteran investor Jim Rogers said this week that he’d rather seek haven in the dollar than gold, given that bullion had already rallied in 2016 before the referendum. Credit Suisse Group AG has said it’s neutral on gold over the next three to six months.
“Global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already. That has nothing at all to do with Brexit,” Faber said. “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”
Fed Governor Jerome Powell said Tuesday the vote has the potential to create new headwinds for economies, including the U.S., introducing uncertainties that may merit reassessing policy. Traders now see a greater probability the bank will cut rates in upcoming meetings than raise them.
Faber’s views add to a bullish chorus about bullion in the wake of the poll. The metal may stand at the start of a major bull market should the Brexit vote prove to be a forerunner of greater political and financial instability around the world, Evolution Mining Ltd.’s Jake Klein said on Tuesday.
Still, not every one is optimistic. Veteran investor Jim Rogers said this week that he’d rather seek haven in the dollar than gold, given that bullion had already rallied in 2016 before the referendum. Credit Suisse Group AG has said it’s neutral on gold over the next three to six months.
“Global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already. That has nothing at all to do with Brexit,” Faber said. “Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers.”
- Source, Bloomberg
Friday, July 15, 2016
All paper currencies are doomed, Marc Faber says
"They are going to become worthless because of money printing. In other words, the purchasing power is going to continue to diminish as it has diminished for the last hundred years," Faber, known as Dr. Doom, said in an interview with CNBC's "Power Lunch" Friday.
And the Brexit vote last week means even more money printing in the U.K., Japan and the United States, he said.
Therefore, he expects the dollar to go down against gold, silver and platinum — which he believes are going to "vastly" outperform the U.S. stock market.
"Investors should have some exposure to precious metals," he advised. He sees value in mining companies, agricultural stocks and oil servicing companies.
Overall, however, the U.S. is a "fully priced market," Faber said. That said, he wouldn't go as far as shorting the market, because he doesn't like to do so in a money-printing environment.
- Source, CNBC
Tuesday, July 12, 2016
Investors are on the Titanic but there's still a few days to travel
The global economy has been weakening and could worsen ahead, but there are still a lot of market opportunities for investors, said Marc Faber, editor of the Gloom, Boom & Doom Report.
"We're all on the Titanic, but the Titanic still has maybe a few days to travel before it collapses so we might as well enjoy the journey," Faber, also known as Dr. Doom, told CNBC's "Squawk Box."
Anticipating a downtrend, Faber said he's holding physical gold in safe-deposit boxes and buried in his garden, as well as holding gold mining shares. For "ordinary" investors, he recommended holding gold exchange traded funds (ETFs), such as the Market Vectors Gold Miners ETF, or GDX.
Faber said that every investor should hold gold, calling it his preferred currency.
But that didn't mean Faber was dissing on the rest of the stock market.
Faber said the global economy's downtrend was likely to be exacerbated by the U.K.'s vote to leave the European Union (EU), or Brexit, but he added that this wasn't necessarily bad news for the stock market.
"Brexit will give a perfect excuse to the Federal Reserve not to increase interest rates and be most likely to launch QE4," or another round of quantitative easing to purchase assets in the market," Faber said. "Then the other central banks will also join and also launch further easing measures, printing money and so the global economy could worsen and stocks actually could go up."
- Source
Wednesday, June 22, 2016
Saturday, June 18, 2016
Wednesday, June 15, 2016
Marc Faber on investment strategy
- Source, CNBC
Sunday, June 12, 2016
Marc Faber Sees Gold & Trump's Potential
(Click Image to watch, the video cannot be uploaded)
- Source, Kitco
Thursday, June 9, 2016
Marc 'Dr. Doom' Faber is a big bull on these stocks
"Some depressed sectors are showing signs of major lows," Faber wrote to CNBC on Thursday. "I am still negative about stocks but I can see more money printing in the future, which will lift some sectors."
Specifically, Faber is bullish on mining stocks as well as on oil and gas names. His reasoning is that if the values of currencies become depressed, gold and other commodities could see additional demand from those hoping to use them as stores of value.
"The most attractive asset in my view is gold shares and oil and gas shares," Faber said Wednesday on CNBC's "Trading Nation." "I think they still have significant upside potential this year."
More generally, the frequently doom-predicting Faber now emphasizes balance in one's portfolio.
"You need to be diversified," he said Wednesday. "To own some real estate makes sense, to own some equities makes sense, to own some cash and bonds probably makes sense, and to own some precious metal makes sense."
However, he warns that "the market will not go up. Technically, the market isn't looking very good."
- Source, CNBC
Monday, June 6, 2016
Marc Faber: Forget the economy, the Fed is ‘market dependent’
In the minutes released Wednesday, it was recorded that "Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and
While Fed officials frequently highlight their data dependency, the minutes surprised market participants who had thought a June hike was out of the question, and the release consequently led to a dip in stocks and a rise in yields on Wednesday afternoon.
Yet Faber, the editor of the Gloom, Boom & Doom Report, questions the Fed's stated reliance on economic data. In fact, to him, gauging the market's reaction to the potential for a June hike was part of the point of the release.
The Fed "said a rate hike is on the table so they can watch the market reaction," Faber said Wednesday on CNBC's "Trading Nation."
Friday, June 3, 2016
Why Stocks Are Very Vulnerable
While Faber did not give a specific prediction for where markets would go from here, he said central banks in the U.S., Europe and Japan have "manipulated" stocks. He added they may not sustain their current levels with slow economic growth in the U.S. and around the world.
Faber said the leading U.S. presidential candidates, former Secretary of State Hillary Clinton and businessman Donald Trump, add more uncertainty to markets.
- Source, CNBC
Saturday, May 21, 2016
Gold and Silver Are the Best Currencies
Marc Faber, the editor and publisher of the Gloom, Boom & Doom report, has no faith in the dollar. He says precious metals are the only true currency.
"[The U.S. dollar] is not a desirable currency," Faber told CNBC, which described him as perplexed why the world has been so "enthusiastic" about the greenback. "I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market," he said.
"Over the last 12 to 24 months, many sectors have had huge declines,” he said. "And I see here, there are some opportunities."
Faber points to the gold miner ETF GDX. After falling more than 67 percent to its low on Jan. 19 of $12.40, the ETF has rebounded up to $20.58 in the last month. Faber thinks it's going higher, CNBC reported.
Gold futures are still up 15% on the year, according to FactSet, reflecting demand for safety earlier in the year as riskier assets were roiled by fears of a recession.
Some analysts attributed gold's decline Wednesday to recent comments by Federal Reserve officials, who suggested the central bank could still raise benchmark interest rates despite keeping them steady in March.
Higher rates would boost the dollar and make gold more expensive for investors who hold other currencies, pushing the price down.
Gold isn't the only space Faber finds hidden opportunity. He points to Asia where much of the economy and the market is still struggling.
"I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered," Faber said. "And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China."
Wynn's stock tumbled 80 percent to its January low of $49.95. Since then the stock has made a powerful comeback to $95, but Faber believes it could still surge higher, CNBC quoted him as saying.
"I don't think it's a bargain by any means, but I believe China despite its near-term problems that could be very substantial, will in the long run be a very rewarding investment destination."
"[The U.S. dollar] is not a desirable currency," Faber told CNBC, which described him as perplexed why the world has been so "enthusiastic" about the greenback. "I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market," he said.
"Over the last 12 to 24 months, many sectors have had huge declines,” he said. "And I see here, there are some opportunities."
Faber points to the gold miner ETF GDX. After falling more than 67 percent to its low on Jan. 19 of $12.40, the ETF has rebounded up to $20.58 in the last month. Faber thinks it's going higher, CNBC reported.
Gold futures are still up 15% on the year, according to FactSet, reflecting demand for safety earlier in the year as riskier assets were roiled by fears of a recession.
Some analysts attributed gold's decline Wednesday to recent comments by Federal Reserve officials, who suggested the central bank could still raise benchmark interest rates despite keeping them steady in March.
Higher rates would boost the dollar and make gold more expensive for investors who hold other currencies, pushing the price down.
Gold isn't the only space Faber finds hidden opportunity. He points to Asia where much of the economy and the market is still struggling.
"I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered," Faber said. "And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China."
Wynn's stock tumbled 80 percent to its January low of $49.95. Since then the stock has made a powerful comeback to $95, but Faber believes it could still surge higher, CNBC quoted him as saying.
"I don't think it's a bargain by any means, but I believe China despite its near-term problems that could be very substantial, will in the long run be a very rewarding investment destination."
Wednesday, May 18, 2016
Marc Faber turns bullish on these investments
With U.S. stocks at year-to-date highs, Marc Faber is shedding some of his gloom and doom.
"Over the last 12 to 24 months, many sectors have had huge declines," the editor and publisher of the Gloom, Boom & Doom report told CNBC's "Fast Money" traders on Tuesday. "And I see here, there are some opportunities."
Faber points to the gold miner ETF GDX. After falling more than 67 percent to its low on Jan. 19 of $12.40, the ETF has rebounded up to $20.58 in the last month. Faber thinks it's going higher.
"[The U.S. dollar] is not a desirable currency," said Faber, perplexed why the world has been so "enthusiastic" about the greenback. "I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market."
Gold has surged 16 percent from its December low, but it is down sharply Wednesday.
Gold isn't the only space Faber finds hidden opportunity. He points to Asia where much of the economy and the market is still struggling.
"I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered," Faber said. "And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China."
Wynn's stock tumbled 80 percent to its January low of $49.95. Since then the stock has made a powerful comeback to $95, but Faber believes it could still surge higher.
"I don't think it's a bargain by any means, but I believe China despite its near-term problems that could be very substantial, will in the long run be a very rewarding investment destination."
"Over the last 12 to 24 months, many sectors have had huge declines," the editor and publisher of the Gloom, Boom & Doom report told CNBC's "Fast Money" traders on Tuesday. "And I see here, there are some opportunities."
Faber points to the gold miner ETF GDX. After falling more than 67 percent to its low on Jan. 19 of $12.40, the ETF has rebounded up to $20.58 in the last month. Faber thinks it's going higher.
"[The U.S. dollar] is not a desirable currency," said Faber, perplexed why the world has been so "enthusiastic" about the greenback. "I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market."
Gold has surged 16 percent from its December low, but it is down sharply Wednesday.
Gold isn't the only space Faber finds hidden opportunity. He points to Asia where much of the economy and the market is still struggling.
"I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered," Faber said. "And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China."
Wynn's stock tumbled 80 percent to its January low of $49.95. Since then the stock has made a powerful comeback to $95, but Faber believes it could still surge higher.
"I don't think it's a bargain by any means, but I believe China despite its near-term problems that could be very substantial, will in the long run be a very rewarding investment destination."
Sunday, May 15, 2016
“Messiah” Central Banks Money Printing “Will Not End Well”
Faber warns that ultimately “you cannot grow an economy by just throwing money at people” and that “QE for the people” will be like “throwing gasoline on a fire.”
Faber is entertaining, has a good chuckle at the central banks and IMF’s monetary policies and laughs at the idiocy of the IMF’s recentcounterfactual statement when Lagarde said the world economy would be worse off without negative interest rates:
Faber is entertaining, has a good chuckle at the central banks and IMF’s monetary policies and laughs at the idiocy of the IMF’s recent
… they will always say, if we hadn’t done this and hadn’t done that, it would be much worse. They have no proof for this assertion. In my view, it would have been better to let the crisis, already the first one in 2000, run its course and prevent the colossal credit bubble that was built up that then led to an even bigger crisis, and now they’re doing the same mistake.
According to Faber, credit as a percent of the global economy is up “very strongly” since 2007.
“[M]ost of the credit is now for transfer payments, and that is very negative for long term structural economic growth because it allows, actually, the government to become bigger and bigger and to have more regulations,” Faber said. “And I can tell you, I’m in the financial sector and I talk to people in the financial sector. Half the time is nowadays consumed with filling out forms by regulators.”
The financial crises in 2000 and 2008 would have been better if central banks hadn’t intervened, Faber said. He warns against the upcoming “helicopter money” policies:
“…the magicians at central banks, they always come out with a new trick and these negative interest rates that we have today, this is for the first time in recorded human history from the times of Babylon up to today that we have negative interest rates, and it’s not going to end well. That, I can tell you. But the sequence of how it will not end well, I’m not so sure. But they still have a lot of ammunition. What they can do is helicopter money. In other words, they can send you and Mr. Bloomberg and me and everybody, say a check for $10,000, and that is like throwing gasoline into a fire…. will it help the economy? That is the question. It won’t help in the long run. You cannot grow an economy by just throwing money at people.”
“…the less policies, the better it would be. We all learned at school that the free market and the capitalistic system is the best allocator of resources, and now what we have is the worst allocation of resources because it’s the government that tells you how these resources are allocated and they continuously expand their interventions, and I can tell you, I started to work in 1970. In the 70’s and early 1980’s, central banks actually never came up in discussions. They have now become like the messiah, and everybody watches what the central banks do and in the end, in my view, they will have, from a long term perspective, no impact whatsoever. Now can they move markets short term? Yes, but maybe not in the direction they want to.”
Faber recently told GoldCore in a webinar how he will “never sell his gold”, he buys “more every month” and believes owning gold in vaults in Singapore “is safest.”
According to Faber, credit as a percent of the global economy is up “very strongly” since 2007.
“[M]ost of the credit is now for transfer payments, and that is very negative for long term structural economic growth because it allows, actually, the government to become bigger and bigger and to have more regulations,” Faber said. “And I can tell you, I’m in the financial sector and I talk to people in the financial sector. Half the time is nowadays consumed with filling out forms by regulators.”
The financial crises in 2000 and 2008 would have been better if central banks hadn’t intervened, Faber said. He warns against the upcoming “helicopter money” policies:
“…
“…
Faber recently told GoldCore in a webinar how he will “never sell his gold”, he buys “more every month” and believes owning gold in vaults in Singapore “is safest.”
- Source , Gold Seek
Thursday, May 12, 2016
Cashless Society Insanity and Why Wall Street Hates Gold 2016
Friday, May 6, 2016
Hillary Clinton Would 'Destroy the Whole World'
Tuesday, May 3, 2016
Gold is the most desirable currency, not the US Dollar
Saturday, April 30, 2016
Faber: Obama Is `Very Negative' for the Economy
Wednesday, April 27, 2016
Sunday, April 24, 2016
Marc Faber: I Will Never Sell My Gold
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