, Marc Faber Blog: March 2016

Sunday, March 27, 2016

Marc Faber - "I Would Rather Want To Own Some Solid Currency, In Other Words Gold."


"Leave a million dollars with a bank, and in a year, you get only something like $990,000 back," It’s more tempting to own a non-yielding asset such as Gold when returns on other investments are hard to find, according to Faber. He said in December that the U.S. is at the start of a recession and its stocks would fall this year.


Wednesday, March 23, 2016

This Is Why Everyone Needs to Own Gold and Silver

Well, basically, the financial markets have been sick for quite some time. Emerging markets either never made a new high above the 2006, 2007 highs, or they peaked out in 2011, or some even later in 2014. Basically after about February/March 2015, they started to drift. And in the U.S., the indices were strong, but the average stock was down substantially in 2015. This is called weakness beneath the surface of the indices because an index, theoretically, could have 500 stocks and 499 decline, but one stock goes up a lot and drives up the index. So this happened last year, to some extent, in the U.S... you have the strong stocks, Facebook, Amazon, Netflix, Google, and maybe another 20 stocks that were going up. And at the same time, you have thousands of stocks that were acting badly and going down, which accounts for actually a horrible performance for most investors. Now in January, reality set in with the strong stocks, they're all down 20, 30, and sometimes even more percentages.

Well, basically, the financial markets have been sick for quite some time. Emerging markets either never made a new high above the 2006, 2007 highs, or they peaked out in 2011, or some even later in 2014. Basically after about February/March 2015, they started to drift. And in the U.S., the indices were strong, but the average stock was down substantially in 2015. This is called weakness beneath the surface of the indices because an index, theoretically, could have 500 stocks and 499 decline, but one stock goes up a lot and drives up the index. So this happened last year, to some extent, in the U.S... you have the strong stocks, Facebook, Amazon, Netflix, Google, and maybe another 20 stocks that were going up. And at the same time, you have thousands of stocks that were acting badly and going down, which accounts for actually a horrible performance for most investors. Now in January, reality set in with the strong stocks, they're all down 20, 30, and sometimes even more percentages.

- Source, Marc Faber via FX Street

Sunday, March 20, 2016

This Is Why Everyone Needs to Own Gold and Silver

In a negative interest rate environment, zero-yielding gold and silver become a high-yield asset, according to perma-bear investor Marc Faber.

“Leave a million dollars with a bank, and in a year, you get only something like $990,000 back,” Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg. “I would rather want to own some solid currency, in other words gold.”

The yellow precious metal provides returns only through price gains; the same goes for silver.

Gold and silver have jointly been performing a “one-man show,” becoming this year’s best-ever investments, as they feed off the fact that about a quarter of the world economy is now facing negative rates in some form. Likewise, economic growth is faltering across the globe.

Gold and silver have rallied more than 10% since the beginning of the year, trouncing other commodities, sovereign bonds, major currencies, and most stock indices.

These two old precious metals are thriving, with investors speculating more central banks may adopt zero interest rates amid increasing uncertainty for the world economy.

The 10-year Treasury note has increased 3.9% this year, while platinum is up 4.3%. Meanwhile, U.S. stocks, oil, and the U.S. dollar are all in negative territory, with the e-mini NASDAQ 100 losing 10% and West Texas Intermediate (WTI) crude surrendering 15%. The U.S. dollar index is down 1.3%.

Faber said it’s more tempting to own a non-yielding asset, such as gold, when returns on other investments are hard to find.

Japan was the last economy to adopt negative rates late last month, with the aim of spurring growth. Its move followed similar ones taken by Denmark, the euro area, Sweden, and Switzerland.

Faber said in December that the U.S. is at the start of a recession and its stocks would fall this year.


Monday, March 14, 2016

Faber: China's Unwind 'Will Be a Disaster'


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

Sunday, March 6, 2016

World 'crazy' to give central bankers power


The world must be "crazy" to give so much power to central bankers, famed bear Marc Faber told CNBC Friday, calling them "a bunch of professors" whose monetary policy programs have been a "complete failure."

Marc Faber, the editor and publisher of the Gloom, Doom & Boom Report (earning him the moniker "Dr. Doom"), added that he questioned central bank policymakers and the quantitative easing (QE) programs they launched in the U.S., euro zone, U.K. and Japan.

"We all agree on one thing, that the market economy functions best because the opposite is socialism, communism and central planning, which has been a complete failure, but now democracies have implemented a system that is basically run by a bunch of professors and they target inflation, they target exchange rates, they target the quantity of money, I mean, is the world crazy to give them so much power?," he told CNBC Europe's "Squawk Box."

- Source, CNBC

Thursday, March 3, 2016

Markets finally adjusting to reality that we're entering recession


Notorious market contrarian Marc Faber has a message for Wall Street: We are almost in a recession.

Monday on CNBC's "Fast Money," the Gloom, Boom & Doom Report publisher reiterated his bold call that stocks could see a sudden and detrimental crash, similar to what was witnessed in 1987.

"[The market] will remain very volatile because interventions with fiscal and monetary policies, instead of lowering volatility they postpone it, and then it explodes," he said. The S&P 500 has fallen more than 8 percent since the Federal Reserve raised interest rates last month, and the U.S. markets saw their worst start to a year in history.

Recent volatility aside, Faber has been calling for a catastrophic market event for some time. In July 2015 he said stocks could fall up to 40 percent and in April 2014 he said he expected to see a 1987-type crash in the next 12 months. Since his April 2014 call the S&P 500 has returned more than 3 percent.

"The average stock in the U.S. is already down 26 percent from its 52-week high and there are a lot of stocks that are down 50 percent or more," he said. "The indices have hidden the weakness beneath the surface and basically the market has been weak the whole time."

- Source, CNBC