Friday, December 29, 2017

Join the Few Who Gain from Economic Armageddon

The warning signs that a market crash is looming are becoming louder and more frequent. Despite this, most market participants are behaving like it can never happen. In fact, bullish trading is pushing the markets to new highs on an almost daily basis. The warnings are seen, heard and then ignored.

Join the few who will take advantage of what's about to happen. The same few who profited handsomely when billions were lost in the last global economic crisis almost a decade ago rather than those who simply follow the herd.

For most people these warnings are like the graphic images printed on today's packets of cigarettes, they spell out the dangers and yet all the same people are still smoking.

Warnings about an impending market crash are being made by people who predicted with considerable accuracy in 2006 and 2007 what was ahead when the US sub-prime mortgage market collapsed and triggered the global financial crisis.

The one thing these analysts can't predict is an exact time and place for when the crash will happen. It's the same reason people continue to smoke; nobody can say with certainty the number of cigarettes required to kill a person.

So, trading continues regardless until the day the sudden dramatic drop in prices exceeds the 10 per cent threshold that officially marks the point that the crash has arrived.

Just as smokers only decide to stop when the physician says: "Mr Smith, I regret to inform you that you have lung cancer."

Swiss investor Marc Faber, also known as "Dr Doom", predicts that stocks are set to plunge by 40 per cent or more. Mr Faber, the editor of 'The Gloom, Boom & Doom Report' recently told CNBC: "We have a bubble in everything."

His caution is echoed by Nobel Prize-winning economist Robert Professor Shiller who has urged investors to tread cautiously because market valuations are at "unusual highs".

In a recent interview with CNBC, he said: "We are at a high level, and it's concerning," highlighting that the only times valuations have been higher were in 1929 and 2000.

Mark Zandi is chief economist at Moody's Analytics. In August he joined the chorus of analysts preaching caution after determining that the stock market is overvalued.

In an article in Fortune he said: "The stock market is due for a significant correction" adding, "stock returns in the next several years will be very pedestrian if they increase at all."

Last month HSBC issued a Red alert warning. They're looking at two key levels: 17,992 in the Dow Jones Industrial Average and 2,116 in the S&P 500.

"As long as those levels remain intact, the bulls still have a slight hope. But should those levels break and the markets close below, which now seems more likely, it would be a clear sign that the bears have taken over and are starting to feast," said head of technical analysis Murray Gunn. "The possibility of a severe fall in the stock market is now very high," he added.

However, according to Bill Blain, a strategist at Mint Partners, this time bond markets will trigger the mayhem.

According to Blain, stock markets don't matter. "The truth is in bond markets. And that's where I'm looking for the dam to break. The great crash of 2018 is going to start in the deeper, darker depths of the credit market," he said.

"I'm convinced bond markets are the real bubble we should be watching, and it's going to start in high yield..."

Blain's opinion on a bonds inspired crash is echoed by Niall Ferguson in his piece in The Sunday Times this month.

Ferguson was warning about the sub-prime mortgage crisis over a year before the crash occurred. He spoke publicly about it on many occasions and in his book The Ascent of Money spelling out the dangers in graphic detail, which was published just as his predictions were coming true.

He sees a bonds sell off as a result of a series of events that will bring about the next economic crisis.

Ferguson firstly points to the effect of interest rate increases by the big four central banks -- the Fed, European Central Bank, Bank of Japan and Bank of England -- when the rate of economic expansion has already started to slow.

He explains: "History shows that monetary tightening acts with long and variable lags. But it does act, often on stock markets."

Ferguson also points to global wage and inflation increases as the second contributory factor as we approach a demographic inflection point where the ratio of workers to consumers has peaked.

This has led Ferguson to the conclusion that the end of the 35-year bond bull market is imminent. "Bonds will sell off; long-term rates will rise. The question is whether inflation will increase as much or more. If not, then real (inflation-adjusted) interest rates will rise, with serious implications for highly indebted entities."

He points to two big economies, China and Canada, which are in particular trouble. You should probably add Australia to that list given its level of connectedness to China.

Despite being described with the same words, no two financial crises are the same. The next one will differ from the last one, that's why they are so hard to put into an actionable timeframe. But the inevitability that there will be a next one increases as the monetary medication begins to be withdrawn, which makes the need for taking the right measures now all the more important.

FXB Trading's experts are equally convinced that a significant market correction is imminent. They've devised a strategy to profit from the situation as many notable forward-thinking analysts did ahead of the 2008 sub-prime mortgage crash in the US which then caused the subsequent global financial crisis.

In the 2008 scenario their investment returned ratios of between 1:10 to 1:20. FXB's traders will replicate the trade, but will also hedge their position.

Until the market crashed in 2008 those US traders were in a losing position, but by hedging it is possible to avoid losses until the crash occurs.

- Source, The Digital Journal

Monday, December 25, 2017

A 64% Decline? Really?

EconomPic had an interesting article about the standard deviation of a 60/40 equity fixed income portfolio having imploded during the bull market and included a great chart for a visual idea of what has occurred.

While I doubt there are any surprises here as you can’t go more than a couple of scrolls on your Twitter feed without seeing something about how low VIX is, it nonetheless raises some good talking points.

The first thing is capital markets are like pendulums with a lot of things. Foreign equities dramatically outperformed domestic in the 2000's. This decade, domestic is way ahead of foreign - until this year. Same thing with currencies, the dollar goes on long runs of outperformance, followed by long periods of underperformance and so on. Where volatility has been low and headed lower this year, it will at some point turn around and move higher. That is not a prediction that I am trying to game so much as an observation of how markets work and a reminder for practice management, take the time to remind clients that market cycles and volatility have not been repealed.

To that point John Hussman’s latest commentary is a doozy. He says that based on his study of valuations versus interest rates and a few other things, he believes that a 64% decline is coming to the S&P 500 (NYSEARCA:SPY) with the expectation that the next 10-12 years will offer negative returns.

If you know who John Hussman is, you know that he has been bearish all the way up. The way I always mention him is to say, he does a great job of framing the bear case, and that is what he is doing; valuations are out of whack given where interest rates are. He hasn’t really drawn the correct conclusion in that he positioned against the market rising and his flagship fund has suffered for it.

- Source, Seeking Alpha

Thursday, December 21, 2017

Marc Faber: Why Trump's rhetoric will drive up Asian stocks

(Please Click Image, or HERE to Watch Video)

Trump may publish harsh tweets, but that'll only send the Asian markets down for a day or so, Faber, also known as Dr. Doom for his pessimistic views, told CNBC's "Squawk Box" on Thursday.

- Source

Saturday, December 16, 2017

The Real Risk of Total Global Economic Collapse

Marc Faber discusses the very real risk that the world is facing. A total economic collapse. Central bankers are going to be the driving force behind this, and their ignorance is going to be our undoing. Get prepared.

- Source

Wednesday, December 13, 2017

Marc Faber: An avalanche of selling is coming our way

The Gloom, Boom & Doom Report’s Marc Faber discusses why he foresees the end of the market's bull run.

- Source, CNBC

Tuesday, November 28, 2017

Marc Faber: Every Market In Asia Has Outperformed The United States!

Marc Faber shares his thought provoking insights with us regarding freedom of the press the economy and also Blockchain technology. Other important subjects discussed is the Central Banker’s control over the economy and President Trump.

- Source, Crush The Street

Friday, November 24, 2017

Marc Faber: Will 2018 be Boom, Gloom, or Doom?

Dr. Marc Faber is a Swiss investor based in Thailand. He publishes a widely read monthly investment newsletter “The Gloom Boom & Doom Report” which highlights investment opportunities. He is also a published author and a regular contributor to several leading financial publications around the world. When it comes to investing your hard-earned money, he is the perfect person to learn from. 

This episode visualizes the possibilities of the future in terms of Economy and Investments. As an expert in the field, Dr. Faber explains how the world has changed rapidly and what could be expected in the coming years. He also offers great insights on what to consider when investing your money.

Monday, November 20, 2017

Marc Faber: There is Massive Fraud In This Financial Bubble

A big difference between the market today and that of the 1987 crash is unfunded pensions. Renowned investor Dr. Marc Faber, who holds a PhD in economics, says, “The unfunded liabilities have gone up. 

They did not go down. So, if in rising asset markets the pension funds unfunded liabilities go up, can you imagine what will happen when markets fall? So, they will have to print money.

Bear markets do not occur just because of one event. It’s a series of circumstances that lead to a loss of confidence with people exiting markets, and then with people exiting markets in a panic.

Fed Head Janet Yellen said if conditions would warrant further measures, the Fed would take further measures. So, she (Yellen) said if the Fed thought the economy was weakening, or their beloved asset markets go down, then she may again ease and introduce QE4 (money printing out of thin air.).

In today’s situation, the asset market is less overbought, but the asset bubbles are everywhere. Each bubble has fraud cases, and I mean massive fraud. That’s the characteristic of each bubble. There is fraud.”

- Source, USA Watchdog

Wednesday, November 8, 2017

Marc Faber Defends His Controversial Comments: "If I Recall We Have Freedom of Speech"

Dr. Doom has cited freedom of speech as part of his decision to not rescind his racist comments.

Marc Faber, the Hong-Kong based, Swiss-born financier, known as Dr. Doom, faced severe backlash this week for suggesting that the U.S. prospered because it was settled by white people rather than black people.

While the comments have led to his being dismissed from the boards of three firms, Faber does not appear to feel remorse for what he wrote. Faber told the New York Post in an email, “If I recall we have freedom of speech and expression. I am not prepared to compromise this freedom and liberty.”

He reportedly exchanged additional emails with the outlet, further clarifying his remarks. He explained that he is “aware that we all have different values, but I was talking about economic progress when I wrote my report, not [white nationalist] values.”

When Faber was asked about his opinions on the abilities of African Americans and their capacity to “deliver economic progress,” he simply replied, “May I suggest you travel extensively through Africa and you will find — hopefully the answer.”

When asked for comment on the Post report and the backlash over his comments, Faber told Fortune that, “If this is the only sin I committed in my life I would feel like a saint.”

- Source, Fortune

Thursday, November 2, 2017

Dr Doom: Stock Market Meltdown Coming and No One is Prepared

Share prices in the US have posted fresh record highs in recent days as fears over North Korea fade.

But a sharp downturn is coming and will be as bad as the 2008 shock, according to Marc Faber, who has warned investors are too complacent.

He told CNBC: "You don't see, and I don't see. And, nobody sees. That's why people keep buying stocks.

"And yet, something will happen one day."

He previously said billions of pounds worth of holdings will be lost when stocks fall a huge 40 per cent.

And said the crash is likely to happen when Wall Street least expects it.

There are several scenarios that could trigger market carnage, according to Mr Faber.

The pessimistic critic said: "I think it may very well come from a credit event.

"Or, it may come from the disclosure of a major fraud.

"Or, it may come because interest rates start to go up."

US stock markets continue to reach for the sky as the US Federal Reserve yesterday signalled further rises in interest rates.

The S&P 500 has hit 36 record highs this year, while the Dow has notched up 41 highest ever closes.

But the US Fed has forecast three rate hikes next year and there could also be a rate rise in December.

Dr Doom, as Mr Faber has come to be known, said the market is overvalued: "In 2009 when stocks bottomed out, I can tell you that not many people saw why stocks would go up.

"Now it's the opposite. The sky is clear. Corporate profits have been expanding — they're good.

"Interest rates are low, but valuations are very high."

- Source, Express

Monday, October 30, 2017

After Jim Rogers, Marc Faber Predicts a Severe Stock Market Crash

Marc Faber, popularly known as Dr Doom has predicted that the US stock markets could correct by as much as 30-40%. In an interview to CNBC last week, Marc Faber said, “ You don’t see it. I don’t see it and nobody sees it. That’s why people continue buying stocks. Yet something will happen one day.” Explaining what may cause the plummeting of stocks he said, “It may come from a credit event, or a disclosure of a major fraud, or it may come because interest rates start to go up, although central banks remain on the dovish side. There are many small events that can trigger the decline.”

Explaining why he predicts an impending doom, Marc Faber said that even though corporate profits have been expanding and interest rates remain low in the United States, as opposed to 2009, the valuations are very high. “Hardly anywhere in the world valuations are low. Stocks as well as bonds are fully priced,” he pointed out.

Just last month, Jim Rogers, who co-founded the Quantum Fund alongside George Soros, predicted that the “biggest crisis in his lifetime” is less than a year away. In an interview to Kitco news, Jim Rogers said, “We could see the worst crash in my entire life pretty soon.” Jim Rogers went one step ahead to say that it would be ‘bizarre’ if there wasn’t a problem. “We’ve had economic problems in the US, in North America, every four years since the beginning of the republic, to say that we’re going to have a problem is not unusual,” Jim Rogers had told in the same interview to Kitco. Jim Rogers observed that the 2008 financial crisis was caused due to a rise in debt, and since then the debt has gone through the roof. In fact, Alberto Gallo of Algebris Investments, in a blog written in July this year noted that global debt levels have almost quadrupled, rising 276% in the last decade to $217 trillion.

Just like Jim Rogers, Marc Faber is betting on precious metals. Marc faber said, “Relative to everything else, I think precious metals are not terribly expensive. I think agricultural commodities are inexpensive,” he told CNBC last week. Jim Rogers, sometimes referred to as ‘Commodities Guru’, believes that gold prices are likely to skyrocket, in view of the impending meltdown. He observed that people have always turned to gold in the face of crisis and this time around it’s not going to be any different. In the same conversation with Kitco, he said, “Gold is going to be explosive in the next few years.”

Thursday, October 26, 2017

Marc Faber: Trump Policies Will Only Hurt US Dollar in Long Run

Economic guru Marc Faber warns that the Trump administration and its economic policies won’t help the U.S. dollar in the long run.

Faber, who has earned the nickname “Dr. Doom” for his pessimistic forecasts, explained to CNBC that the greenback “could easily rebound” by 4-5 percent or even more from current levels.

However, he said the American currency won’t benefit over time from any of Trump’s policies so far.

The dollar index has tumbled nearly 10 percent since the start of 2017. At the same time, gains among currencies such as euro and peso also added to the dollar's pain.

"I think the dollar could easily rebound by 4 to 5 percent, or maybe even more. Longer term, I'm obviously not optimistic about the U.S. dollar,” said the editor and publisher of The Gloom, Boom & Doom Report.

“You just have to look at the U.S. administration and their economic policies that will not be very conducive for dollar strength in the long run," said Faber.

"They're actually shooting themselves in their own feet, so long term I'm obviously negative about the U.S. dollar," he added.

For his part, Trump has continued to proclaim his dislike of a strong dollar, breaking with the traditional practice of presidents not commenting on the American currency.

"I like a dollar that's not too strong," he said, according to a Wall Street Journal interview transcript posted by Politico.

"I mean, I've seen strong dollars. And frankly, other than the fact that it sounds good, lots of bad things happen with a strong dollar," Trump said, according to the transcript.

Meanwhile, the dollar held losses against a basket of major currencies on Thursday following data that showed a faster-than-forecast increase in domestic consumer prices in August, Reuters reported.

U.S. consumer prices accelerated in August amid a jump in the cost of gasoline and rental accommodation, signs of firming inflation that could allow further monetary policy tightening from the Federal Reserve this year.

The dollar index, which tracks the greenback against six major currencies, was down 0.3 percent at 92.246. The index had been at 92.286 before the release of the data.

The Labor Department said its Consumer Price Index rose 0.4 percent last month after edging up 0.1 percent in July. Economists had forecast the CPI rising 0.3 percent in August.

“The inflation number, while probably not high enough to set off any inflation alarm bells just yet, should still be sufficient keep alive hopes for a third rate hike in December by the Fed,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

Strong gains for the greenback on Wednesday, when the dollar index rose 0.69 percent, its best day in nearly six weeks, was probably part of the reason behind the dollar’s muted reaction to Thursday’s data, Esiner said.

- Source, NewsMax

Tuesday, October 24, 2017

Sunday, October 22, 2017

Marc Faber, The Media Has Become Incredibly Biased, Free Speech is Under Threat

Marc Faber answered questions in an e-mail exchange with The Globe and Mail.

Do you have any regrets about what you wrote in your latest newsletter?

Why should I regret stating historic facts?

People are interpreting what you wrote as racist, as you are clearly stating the superiority of whites in comparison to blacks.

From the perspective of economic progress and development clearly. Is the world a better place after 200 years of Western economic and political as well as military superiority? No, we whites have been extremely cruel, but I sometime wonder if other ethnic groups would have been any better????

Would you still write what you wrote knowing what has transpired? i.e., big backlash in the public, and being sacked from the 3 boards in Canada.

If saying what I said leads to these consequences I prefer not to be on these boards.

Do you think the actions of the three companies (Ivanhoe, Sprott & Novagold) to ask you to resign was appropriate, or do you think you should be allowed to keep those board seats?

I think the corporate world is now run by compliance people. In this context I understand their firing me. In the meantime another two companies asked me to resign – So 5 in one day.

Do you see any hypocrisy at all from the three companies in asking for your resignation?

Unfortunately, Western societies have become extremely hypocritical. Their so called moral superiority will take them down.

Are these companies as moral and upstanding as they profess to be? Sprott and Ivanhoe clearly state they have certain values that they uphold rigorously. Do you think they actually adhere to these values, or is this lip service designed to protect themselves?

Morals in the corporate world? "When it comes to money, everybody is of the same religion" = Voltaire. I am not God. I am not here to judge other people. One CEO stated that I must have been on some drugs when I wrote my Gloom Boom & Doom report. Since I have only taken Cocaine three times and marijuana about ten times in seventy years, I did not think these were appropriate comments.

Have any of the companies privately told you something different than what has been stated publicly?

Numerous board members have expressed their regrets that I am leaving their board.
Will the financial impact from losing income from those lost board seats impact you in a big way, or does it not really matter?

It will be a huge loss. I shall go back to being a waiter.

Does the public backlash bother you, or are you immune to this?

It bothers me greatly that I had to hear all the time I was at school and at University about enlightenment, freedom of speech and of expression that the media nowadays did not find anything better to do than to label me as racist. To call someone a racist is a form of low blow insult. Insult is the response of the weak to strength of character.

Have you had a significant amount of subscribers cancel their subscriptions to your newsletter as a result of the controversy?

No, I think most people actually agree with me and certainly defend freedom of expression even if it does not coincide with their views.

Does it bother you that the U.S. business channels say you will no longer be welcome as a guest?

It bothers me greatly that the media has become this biased against people with a different view.

Thursday, October 19, 2017

What Marc Faber is Buying Right Now

Marc Faber discusses the recent action he is seeing in the markets and how he sees things unfolding going forward. Is gold still a good investment, or are there now better opportunities? Will the market continue onward with its rise? Tune in to learn more.

- Source, CNBC

2017 UK Great Britain Silver Britannia 1 oz Brilliant Uncirculated Royal Mint

Marc Faber Won't Apologize for Recent "Racist" Comments, Doubles Down

Prominent business newsletter writer Marc Faber stood by racist remarks he made this week that led to his dismissal from several corporate boards, justifying them on freedom-of-speech grounds.

On Tuesday, three well-known publicly traded Canadian companies promptly dismissed Mr. Faber, a Thailand-based investor and publisher of a well-read investment newsletter, from their boards, after the publication of his latest Gloom, Boom & Doom Report, which contained the statements: "Thank God white people populated America and not the blacks," and "at least America enjoyed 200 years in the economic and political sun under a white majority."

The remarks went viral, causing widespread outrage, with commentators blasting Mr. Faber for his insensitivity and blatant racism. Ivanhoe Mines Ltd., which was one of the companies that sacked Mr. Faber, said in a release on Tuesday it "deplores" his views about race. U.S. business television networks also distanced themselves from Mr. Faber, with CNBC, Fox and Bloomberg stating he is no longer welcome as a guest.

He isn't likely to pop up any time soon on Canadian business television either.

"Mr. Faber will not be appearing on BNN in the future," said a Bell Media spokesperson in an e-mail to The Globe and Mail.

In the face of all of this backlash, Mr. Faber is standing by his remarks. In a series of e-mailed answers to The Globe, Mr. Faber said he did not regret his comments about race, and would not change a word of his missive, citing freedom of speech rights.

"Why should I regret stating historic facts?" he wrote.

When asked if he knew in advance that that the publication of his commentary would result in him being fired from corporate boards, he replied; "If saying what I said leads to these consequences I prefer not to be on these boards."

"I think the corporate world is now run by compliance people. In this context I understand their firing me," he added.

In addition to Ivanhoe, Sprott Inc. and NovaGold also cut ties with Mr. Faber on Tuesday. He also confirmed to The Globe that U.S-based Sunshine Silver Mining Corp. and Vietnam Growth Fund have also let him go.

"One CEO stated that I must have been on some drugs when I wrote my Gloom Boom & Doom report," wrote Mr. Faber, who doesn't recall which CEO make that remark.

"Since I have only taken cocaine three times and marijuana about ten times in seventy years, I did not think these were appropriate comments, " he added.

Richard Leblanc, associate professor of law, governance and ethics at York University, called Mr. Faber's after-the-fact refusal to apologize and the doubling-down on his remarks "very anomalous."

"His reaction is odd," Mr. Leblanc said.

"It actually makes it worse."

Mr. Leblanc says the zeitgeist has changed somewhat since Donald Trump ran an election campaign and subsequently is running a presidency, occasionally based on making derogatory comments, refusing to apologize and then doubling down. Others in the public eye now feel they have "permission" to do likewise, he says, despite corporate boards having no tolerance for such remarks.

Canadian boards in particular are much less forgiving and tolerant than American boards when it comes to off-colour remarks pertaining to race, religion and sexism, Mr. Leblanc says. It's also becoming much more prevalent in North America to do extensive background checks on prospective board members, so as to head off any scandals.

"What you don't want is a situation like this," he says.

"It's an incredible distraction."

As for Mr. Faber, he admits that his comments will cost him economically. The three Canadian board seats alone paid him about $390,000 a year. He is also less likely to be in demand for speaking engagements, and his newsletter, which costs $300 (U.S.) a year per subscriber, may see a decline in popularity, as he will have little or no free exposure any more on business television.

"Economically it will be a huge loss," Mr. Faber said.

"I shall go back to being a waiter."

Monday, October 16, 2017

Marc Faber: I've Increased My Positions in China

Marc Faber, editor of The Gloom, Boom & Doom Report, weighs in on the outlook for emerging markets and says the sentiment about China is turning more positive.

- Source, CNBC

American Buffalo 1oz fine silver round

Friday, October 13, 2017

Monday, October 2, 2017

Marc Faber: This Is Your Best Bet Against Cyber Terrorism

Earlier this month, famous investor Marc Faber reiterated something we've long told our readers: You need to own gold. And you need to own it now.

Especially in the face of cyberterrorism.

In a recent interview with Metal Masters, Faber noted that the biggest geopolitical risk for Americans today is not a conventional war, but rather cyberattacks that could take down the entire U.S. power grid.

If that were to happen, noted Faber, gold would become an "irreplaceable medium of exchange."

"It's good to have a diversified asset outside of the banking system and not financially related," said Faber. That way, if cyber hackers did go after the power grid – or the stock market – you would have investments not tied to either of them, according to Faber.

But cyberattack threats are not the only reason you should have some gold in your portfolio now. In fact, Money Morning Resource Specialist Peter Krauth is watching a gold price catalyst that makes the precious metal a valuable asset even without the risk of a cyberattack…

Gold Prices Are Set to Rise in September Thanks to Congress

On Sept. 29, a U.S. government deadline could be responsible for the next gold price rally in 2017. That is, if members of Congress don't agree on one important issue: the debt ceiling.

The debt ceiling limits how much debt the federal government can carry at any given time. Right now, the current debt level of $19.9 trillion is just a hair away from the $20.1 trillion ceiling.

Unless Congress agrees to raise the ceiling by the deadline, the government will essentially run out of money and will no longer be able to cover its expenses...

- Source, Money Morning, Read the Full Article Here

Friday, September 29, 2017

Gold and Cryptos Are Rising Due to Distrust in Paper Money

I think gold has bottomed out about 1.5 years ago in December 2015. Then we had a strong performance in 2016 where we came back. At the end of last year, we were again at a relatively low level and stocks were depressed. Since then gold mining ETF is up more than 18 percent vis-à-vis DSNP which is up by 9 percent. There are many gold shares that are up between 30 and 300 percent. In my view, the media in the U.S. has a very strong bias for FAM and FAM-related stocks. 

The mining sector does not obtain or receive the necessary attention from the media in the U.S. So, people don’t know how well gold shares are doing. You take American Barrick, Newmont Mining..these are big companies. From December 2015 to today, they are up maybe by 300-400 percent. That people don’t talk about. They talk about Google, Amazon. But the strong performance of the mining companies over the last 2-3 years is not mentioned. 

Now they had a big move recently because gold broke out above 1,300 dollars an ounce. So, they are near term overbought. But any investor when he thinks Jackson Hole, you encounter the typical group thinking phenomena. Yellen, Draghi and Kuroda talking together. Of course they coordinate monetary policies and of course they will print more money in the long run. So the purchasing power of paper money is going down and so I would own some gold. The new thing is the cryptocurrencies. That is a wonderful thing. 

Why do we have crypto currencies? We have it because an increasing number of people don’t trust paper money anymore and they don’t want money that is controlled by the central banks, that pollutes Jackson Hole.

- Source, Bloomberg Quint

Tuesday, September 26, 2017

China Has a Credit Bubble, But So Does the Whole World

I think the beauty about Asia, in terms of being an active manager, is that markets do not move all in concert. There are some markets that are strong. Let’s take the Indian market. It bottomed out in September 2013 after around 17,000 on the Sensex and since then its up more than 80 percent. Many other markets since 2013-14 are actually down. And so India had a huge move. This wasn’t the case for China until recently. 

Recently, China has been picking up. The economy looks slightly better at the present time because there is also a massive injection of liquidity both through the government and the banking sector. Suddenly now, western investors are realising that maybe we are being bearish about China. Yes, they have a credit bubble but so does the whole world. Maybe the Chinese credit bubble can be managed whereas in other countries the credit bubble may be a bigger problem particularly with respect to pension firms and unfunded liabilities. 

So, the money is suddenly flowing into China and, I have to say, I am not quite bullish about China. But, more than a year ago, I started recommending Macau gaming stocks, asset play on the Chinese recovery. Most of these stocks have almost doubled in price.

- Source, Bloomberg Quint

Saturday, September 23, 2017

It’s A Miracle India Grows At All Given Its Horrific Bureaucracy

I had argued for years that I would rather be invested in India than in the U.S. But I have also pointed out that it’s actually a miracle that India grows at all given the horrific bureaucracy India has. This is now really a case where it’s a miracle that India grows at all given the bureaucracy that it has. I tell you, this is about the worst encounter in the whole world.

Wednesday, September 20, 2017

Marc Faber: Trump will be a much better president for world peace

Marc Faber, editor of the “Gloom, Boom & Doom Report”, explains why he thinks a Donald Trump presidency may not be such a bad thing for the global economy.

- Source, CNBC

Sunday, September 17, 2017

Marc Faber: Canada needs to diversify away from U.S. trade dependence

Marc Faber, editor and publisher of the Gloom, Boom & Doom Report joins BNN to discuss why Canada needs to diversify its trade policy away from the U.S.

- Source, BNN

Thursday, September 14, 2017

In The Age Of Cyber-Terrorism, Every Investor Must Own Gold

Take it from “Dr. Doom”: own some physical gold and keep it out of the banking system.

Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style.

In a recent Metal Masters interview with the Hard Assets Alliance, he noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the U.S. power grid.

In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today.

Diversified Assets Outside the Banking System

Faber grew up in Switzerland right after World War II, a tough time that caused his family to distrust paper money and taught him the importance of precious metals as a safety net.

Faber remembers how his father talked about rich people as millionaires. “That, in the ‘50s and ‘60s and ‘70s, was a lot of money. Today, a million is nothing at all—small change. Unfortunately. When people talk about, ‘Oh, there is no inflation in the system,’ this is nonsense. Compared to assets, money has lost a tremendous amount of purchasing power.”

After working on Wall Street for over two decades, Faber’s assets consisted mainly of bonds, equities, and real estate. He says it was in the 1990s when he realized that “it’s good to have a diversified asset outside the banking system and not financially related” and began to purchase some physical gold every month.

The Fed largely ignores gold as an asset, he says, because “gold is an embarrassment to central banks.”

- Source, Forbes

Monday, September 11, 2017

Marc Faber: There will be another ‘massive’ financial crisis in my lifetime

Marc Faber, editor of the ’Gloom, Boom & Doom’ report, speaks to CNBC’s ’Squawk on the Street’ crew on his market outlook. Faber says he expects to see another 'massive' financial crisis in his lifetime.

Friday, September 8, 2017

There's no all-clear signal in the markets

Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, discusses his perpetually bearish outlook for markets.

- Source, CNBC

Wednesday, August 30, 2017

Dr Doom Marc Faber won’t buy these four Nifty stocks

‘Dr Doom’ Marc Faber, a perennial bear investor who has been surprisingly bullish on Indian stocks, has started turning a little cautious on Indian equities. In an interview to CNBC TV18 this week, Marc Faber — renowned investor and author of Gloom, Boom & Doom report — reiterated his belief that the Indian equity markets will outperform the US markets over the next 10 years, but added a note of caution over valuations, given the recent run up in the benchmark indices.

Further, Marc Faber also raised concerns on the valuations of individual stocks which have high P/E multiple ratios of 50x or above. “Some Indian valuations are around 50 times the earnings, which I would regard to be on the high side,” Marc Faber said in the interview. Even though he conceded that a collapse in such stocks may not be immediately due, Marc Faber said that he would still not buy such stocks.

“The stocks may not necessarily collapse right away… maybe they would actually go to 60 times the earnings or even 70 times the earnings,” Marc Faber said, adding that a lot of things have to fall in place perfectly to buy those stocks at so high valuations, and that he would rather stay away from such shares. “I am just saying that once you pay 50 times the earnings for a stock, everything has to go perfectly well to justify that valuation. I wouldn’t buy a stock at 50 times the earnings,” he said.

Indian equity markets are on a rampage of late. Benchmark equity indices Sensex and Nifty have risen over 21%-22% so far this year since January, with NSE Nifty-50 hitting a historical five-digit mark of 10,000 points for the first time ever. With it, the sentiment has lifted several stocks to unprecedented levels in terms of valuations. Within the NSE Nifty 50 universe itself, there are at least four stocks trading above the price-earnings multiple of 50 times of above — a level too high to justify investment by Marc Faber’s standards.

Bharti Airtel Ltd ended at Rs 413.35 on Friday and has rallied over 45% since its November lows after demonetisation. The shares of India’s largest telecommunication services provider are trading at over 61 times earnings. By contrast, shares of Reliance Industries, whose Jio telecom service is the main competitor pressurising Bharti Airtel’s margins, are at a P/E multiple of 16 times.

Asian Paints Ltd, at Rs 1,152.85 at Friday’s close, has a price/earning ratio of over 60x. The stock of the paints and chemicals company has rallied over 35% since its December lows. Earlier this week, Asian Paints said its fiscal first quarter net profit fell over 20% on-year to Rs 440.74 crore, missing most analyst estimates by a wide margin.

Hindustan Unilever shares, which ended at Rs 1,154.1 on Friday, have a P/E multiple of over 56x. The stock is up over 47% from its last low levels seen in December. One of the leading FMCG companies in India, Hindustan Unilever is one of the firms expected to get a huge boost from the growth in local consumption and ease in movement of goods following the implementation of GST earlier this month.

Bosch Ltd shares are not just expensive by their P/E multiples, but by their prices as well. At Rs 23,768.55 on BSE at Friday’s close, Bosch shares have a price-earning ratio of over 50x. Since November, Bosch shares are up over 32%.

Not only this, there are at least four other Nifty 50 shares which are at a PE multiple of between 40x and 50x. Cement maker ACC Ltd and farm tractor and commercial vehicles maker Eicher Motors are at respective Price-Earnings multiples of over 48x and 47x. Whereas, pharmaceutical major Cipla Ltd and another cement maker Ambuja Cements Ltd have P/E multiples of over 45x and 41x respectively.

Sunday, August 27, 2017

US stocks are overheated; so Marc Faber is buying Asian shares, and gold

Marc Faber’s disenchantment with equity shares, especially US stocks, is well-known. However, it is not very often that the 80-year old veteran gives others an insight into his portfolio. Often referred to as Dr Doom, renowned investor Marc Faber — the author of Gloom, Boom & Doom report — said this week that he has allocated only a quarter of his portfolio to equities, and that too, mainly in Asia. The remaining three-fourths of Marc Faber’s money is mainly divided between real estate, precious metal and gold shares.

The reason is simple: Marc Faber is not a believer in the rally in the US stock markets, and seems to be openly opposed to the US President Donald Trump’s ideas! “Don’t be overly optimistic,” Marc Faber said in an interview to CNBC television earlier this week. Just before that, Donald Trump had tweeted: “Highest Stock Market EVER, best economic numbers in years, unemployment lowest in 17 years, wages raising, border secure, S.C.: No WH chaos!”

However, Marc Faber, as usual, was unimpressed. “If you look at the markets, there are lots of stocks that are lower, and significantly lower than they were at the highs. And so, it’s not an all-clear signal,” he said, adding that the risks have increased. Marc Faber pointed out to huge disparity between the returns in gold and gold ETF index. While the S&P index is up 23% since January 2016, gold has returned 20% in the same period. Meanwhile, the GDX, the Gold ETF index, is up by 80% since January 2016, indicating that the markets are very distorted and investors are in a very artificial environment, he said.

To counter this, as alternatives to US stocks, the perennially bearish investor invests in “very simple” areas of investment involving real estate, overseas equities and commodities. “I don’t change that asset location a lot, but I am aware that there is a risk because if equities go down, then obviously all my bonds will likely go down,” Marc Faber said.

He revealed that he allocates 25% of his portfolio in real estate, mostly in the Asian markets, adding that he has also taken exposure in precious metal and gold shares. In the same breath, Marc Faber added that the financials in Europe look reasonably attractive.

Earlier last month, Marc Faber, who seldom minces words, reinforced his preference for investing in India over the US on the back of a strong government led by Prime Minister Narendra Modi. Not only this he also described the US government as “corrupt like hell”, adding to his list of strong phrases to refer to the western administration. Earlier this year, he had used the phrase “rotten western democracies” while citing his preference to invest in India over the US markets.

Thursday, August 24, 2017

Why Marc Faber Predicts a Correction in the S&P 500 Index

Faber said in the interview that although the US indexes (QQQ) (DIA) are making record highs, investors should be cautious about the market rally. He said the market is “very distorted.” So could investors face a correction in the market (SPY) in the near term?

Since January 2016, the S&P 500 index (SPX-INDEX) has risen nearly 23.0%, as of August 3, 2017. Gold prices (GLD) have risen nearly 16.0% during the same period. The SPDR Gold Shares (GLD), which tracks the performance of gold, rose nearly 17.0%, and the iShares MSCI Global Gold Miners (RING), which tracks the performance of gold miners, rose nearly 64.0% during the same period.

In the past, we’ve seen that when the equity market tumbles, investors moved toward safe-haven assets such as gold and the Japanese yen (FXY). Gold outperforms in that scenario. In 2008, when the global debt crisis spooked the equity market, gold rose about 145.0% from September 2008 to July 2011, while the equity market took a huge fall. Since July 2011, the S&P 500 index has risen about 62.0%, touching its high of 2,130 in July 2015. During the same period, gold fell about 92.0%.

It shows that the equity market and gold have an inverse relationship. They are negatively correlated. Between January 2010 and December 2015, GLD had a negative correlation factor of 0.89 with the S&P 500 index. However, in the present situation, both the S&P 500 index and gold are moving in the same direction. According to Faber, this situation might lead to a great disruption in the market.

- Source, Market Realist

Monday, August 21, 2017

Marc Faber touts Three alternatives to what he sees as risky US stocks

Marc Faber, the editor of The Gloom, Boom & Doom Report, told CNBC on Monday that risk has increased as stocks have moved higher.

"Don't be overly optimistic," the widely followed newsletter analyst also known as "Dr. Doom" said on "Squawk Alley." "If you look at the market, there are lots of stocks that are lower, and significantly lower than they were at the highs. And so, it's not an all-clear signal."

Faber added he believes the market is "very distorted" and said investors are in a very artificial environment. He then explained what he called his "very simple" areas of asset location, which break down to three alternatives to U.S. stocks, including real estate, overseas equities, and commodity investments.

"Twenty-five percent in real estate; my real estate is mostly in Asia. Twenty-five percent in equities; I have mostly Asian equities," he said, adding financials in Europe look reasonably attractive. "Then I have some precious metal and gold shares."

"I don't change that asset location a lot, but I am aware that there is a risk because if equities go down, then obviously all my bonds will likely go down," he said.

Faber spoke as the three major indexes were on track for their best month since February. The Dow Jones industrial average hit a record high Monday as Wall Street cheered on what's been a strong earnings season.

Equities reached record highs last week, but some strategists say the technical backdrop for stocks shows investors should be cautious.

- Source, CNBC

Friday, August 18, 2017

Volatility will pick up Massively, says Marc Faber

Volatility will pick up ‘massively’, says Marc Faber from CNBC.

Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report," talks about the outlook and volatility for markets.

Tuesday, August 15, 2017

Why Marc Faber is overweight EMs

Why Marc Faber is overweight EMs from CNBC.

Marc Faber, editor of The Gloom, Boom & Doom Report, says President Trump's policies have actually been good for foreign stock markets.

Saturday, August 12, 2017

Trader takes on Marc Faber

Trader takes on Marc Faber from CNBC.

Scott Nations and Marc Faber, editor of the Boom, Gloom and Doom Report square off on their views of the market.

Wednesday, August 9, 2017

Marc Faber: There's no all-clear signal in the markets

Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, discusses his perpetually bearish outlook for markets.

- Source, CNBC

Thursday, August 3, 2017

Marc Faber is Warning - Be Cautious On Industrial Commodities

Commenting on the banking sector, Faber said that he is positive on financial stocks such as banks and particularly insurance companies. They might be going through near-term pain but eventually they will clean up their balance sheet.

The long-term potential for banking as a sector is huge but equally we have to understand there are huge technological changes underway in the world, explains Faber. Financial institutions who move along with technology will do well while other will not do that well.

Financial stocks which have underperformed for the year will outperform. Secondly, Feber said that in his asset allocation, I always have 25 percent in real estate.

“I think some real estate in India may not be fully attractive because it may be fully priced. But, on the other hand, there is still plenty of real estate which will now move up substantially in value,” said Faber.


Commenting on gold, Faber said that the price of the yellow metal went up by 8 percent last year against the US Dollar. It saw strong outperformance. This year, the gold is already up 7 percent against the USD whereby Dollar has lost 7 percent against the euro. In euro terms we are even.

“Some agricultural commodities are trading at the lowest point and could still bounce back in the second half. But, given the slowdown in growth around the world except India, I would be little bit cautious on industrial commodities,” he said.

- Source, Money Control

Monday, July 31, 2017

Acche din over for the Indian market? Marc Faber sees slight correction in second half

The Indian market rallied as much as 22 percent so far in 2017 in dollar terms but it is unlikely that we could see a similar performance in the second half of 2017, Marc Faber, editor of The Gloom, Boom & Doom Report said in an exclusive interview with CNBC-TV18.

“In a world where we have artificially low-interest rates, the market rallied a little bit ahead of itself and could witness slight correction. But, long term story still looks promising,” he said.

He further added that equity markets around the world in 2017 saw a strong performance of 17-22 percent in Asian markets including India as well as in Europe.

“Hence, the second half would be difficult and I would not be surprised to see US markets going down or the leadership changing. So far the leadership in US markets is held by bellwethers such as Apple, Netflix, Facebook, Amazon, Google etc. and that is about to change.”

This pattern will also apply to Indian markets where the leadership will change, but the only difference is that the leadership would shift from index to stock specific names.

“Going into the second half, India will be more of a stock pickers market and not an index market,” said Faber. There could be some volatility in the short term, but, for the long term, the story looks good.

In the short term, the Indian market could correct here but given favourable fundamentals in long term, Faber is not overly bearish. But, as I said – “If I have to invest for 10 years and choose between Indian and US, I would chose India because it can outperform the US,” said Faber.

- Source, Money Control

Thursday, July 27, 2017

Why Marc Faber is overweight EMs

Marc Faber, editor of The Gloom, Boom & Doom Report, says President Trump's policies have actually been good for foreign stock markets.

- Source, CNBC

Sunday, July 23, 2017

Marc Faber: Still bearish

Marc Faber, investor and author of the Gloom, Boom & Doom Report, remains very bearish. He reckons we could be heading for “an epic decline in asset prices… after eight-plus years of bull markets”, which have left valuations at historically high levels. Another warning sign is that recent gains in most major indices, especially the Nasdaq in the US, have been “driven by a small number of stocks”.

The market’s dependence on the strong performance of a few stars is particularly worrying given that many well-known technology companies, including Amazon, Netflix and Apple, experienced hefty falls at the start of this month. Even if this was just a “correction”, there has clearly been a jump in volatility. One way or another, “when things finally start going down, they’ll go down a lot”, says Faber.

He is also worried about political risk. Over the past 30 years “an increasing share of wealth has gone to big corporations and wealthy individuals”. This will lead to demands for either “a big hike in taxes” or “policies that will lead to a big asset-price deflation”. The problem is compounded by the fact that both governments and companies are hiding their true debt levels by deliberately underfunding pensions obligations. In the case of companies, they are using the money to buy back shares instead.

Yet central banks are likely to try to delay the day of reckoning by printing even more money, meaning that there could even be an initial “lurch to the upside” with “QE99” pushing prices even higher. However, Faber is sure that “eventually the system will break”. As a result, he stands by his prediction that shares prices are set to fall by up to 40%.

- Source, Money Week

Thursday, July 20, 2017

It’s going to end extremely badly, with stocks set to plummet 40% or more

If the man often hailed as the original "Dr. Doom" is right, the stock market could see another "lurch" higher — at which point investors may want to cash out quickly and run for cover.

Marc Faber, the editor of "The Gloom, Boom & Doom Report' and a perennial bear, isn't backing down from his latest dire prediction that would send stocks plummeting by 40 percent or more.

A drop of that size could take the S&P 500 Index down from Friday's closing price of 2,438 to 1,463.

He used the meteoric rise of FANG stocks, which reflects Facebook, Apple, Netflix and Google (Alphabet), as a glaring bearish signal.

"We've had more than eight years of a bull market. The Nasdaq is being driven by very few stocks," said Faber on Friday's "Trading Nation." That rally "is not a particularly healthy sign from a technical point of view, and valuations are very high," the investor added.

Faber's comments come exactly two weeks after the Nasdaq set its latest intraday record high of 6,341.70.

"You know we have a lot of volatility, and when things will start to go down, they'll go down a lot," he said.

Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it.

"Either people with money will be taxed heavily ... or we'll have a massive deflation in asset prices — I repeat: massive," he warned. "Eventually the system will break."

Faber is known for correction calls over the years which have never materialized. But he's sticking by his latest call, acknowledging critics have "questioned my sanity."

"We could print enough money that the Dow goes to 100,000. All I'm saying is it will end very badly, extremely badly," he said.

But it's not all gloom. Faber notes it could also give investors a rare "out-sized" buying opportunity similar to 2003 and 2009, when deep corrections gave traders a chance to load up on cheap assets.

- Source, CNBC

Monday, July 17, 2017

Marc Faber: There will be another massive financial crisis in my lifetime

Marc "Dr. Doom" Faber has a warning for investors — brace yourselves for another financial crisis.

Just last week, Federal Reserve Chair Janet Yellen said another crisis like the one in 2008 was not likely to happen "in our lifetime."

Faber told CNBC's "Squawk on the Street" on Monday that "I'm 71 and for sure in my lifetime, unless I have an accident tomorrow, I will see another financial crisis and a massive one."

He's particularly concerned about the high levels of debt around the globe.

"We have a colossal credit bubble in the world. Can it expand? Yes, but it cannot expand forever. One day there will be a limit and one day there will be another huge crisis because the debt level today is higher than it was in 2007," the editor The Gloom, Boom & Doom Report said.

The noted bear also has been calling for a big drop in the U.S. stock market and believes "we have a bubble in everything."

That said, he told CNBC, "I'm less bearish than I used to be. That worries me."

Because no one knows what the world will look like five years from now, staying diversified is key, Faber said. That means some money in real estate, stocks, bonds and precious metals.

"Although I'm pessimistic about the world and especially about political and social developments in the western world, I can still sleep well at night because I have the 25 percent exposure to equities."

He would look at international stocks over the U.S. market.

- Source, CNBC

Tuesday, July 4, 2017

Faber: I would rather invest in Europe than US

Marc Faber, editor and publisher of "The Gloom, Boom & Doom Report," discusses a bubble in the U.S. markets and how bonds and tech stocks could be to blame.

- Source, CNBC

Saturday, July 1, 2017

Faber: Gold Isn't Down as Much as Apple

Gloom, Boom and Doom Report Publisher marc Faber discusses the markets, gold and his investment strategy on Bloomberg Television's "Street Smart."

- Source, Bloomberg

Wednesday, June 28, 2017

Trump provides 'great entertainment' overseas, Marc Faber says

'The Gloom, Boom & Doom Report' editor Marc Faber discusses why Amazon, Netflix and Tesla shares will each drop 10 percent in a single trading session, and his views on President Trump.

Sunday, June 25, 2017

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

Thursday, June 22, 2017

There Is A Bubble In The Most Popular Stocks: Marc Faber

Marc Faber, Author, The Gloom, Boom & Doom Report states that there is a bubble in the most popular stocks.

Monday, June 19, 2017

Marc Faber: Asset holders will lose 50%

Full disclosure: Marc Faber is always preparing for a stock apocalypse. (That's why he’s commonly referred to as “Mr. Doom.”) Still, he insists, there’s method to his misery. And right now he sees two red flags flapping in the market.

One: On the New York Stock Exchange, there are currently more stocks purchased on margin—that is, with investors borrowing money to buy—than since at least the 1950s. That tends to happen when the stock market is expensive, as it is today.

Prices are actually out of control, Faber says. The historical average price-to-earnings ratio is around 17—but it's around 30 today.

Once people start selling, Faber warns grimly, there will be an avalanche. “I think a realistic scenario is that asset holders will lose 50% of their assets," Faber says. "Some people will lose everything.”

His other major concern is that only a small number of stocks are driving the bulk of the stock market’s ascent. Indeed, just five companies accounted for almost a third of the S&P 500’s total gains in 2016. This means that investors are relying on fewer companies to carry the market, he points out.“If only a handful of shares are moving up, it’s a sign,” Faber says. “The market isn’t healthy.”

- Source, Time

Wednesday, June 7, 2017

Modi better than Trump; India will outperform US over 5-10 years

On a day when market scaled record high on Tuesday, Marc Faber cemented bullish sentiment further by saying that India will continue to outperform the US and other western markets, he said in an exclusive interview with CNBC-TV18.

The editor and publisher of The Gloom, Boom, and Doom Report said that India has got a new government with (Prime Minister) Narendra Modi leading the charge from the front, has much better chance of implementing reforms than say US President, Donald Trump.

Commenting on the economy he said that central banks in emerging economies (EMs) such as India are much more responsible and educated about perils of money printing. RBI’s former governor Raghuram Rajan & present governor Urjit Patel have done a good job in stabilising the rupee.

Indian market is up 13 percent in local currency and in dollar terms, the market is up close to 18 percent led by a rise in the rupee. The currency is very important for foreign investors. A strong currency can pull foreign investors towards India, he said.

“I remain constructive on India and over the next 10-20 years, India has the potential to grow at 5-7 percent each year – which is huge compared to growth rate seen in the US or Europe,” said Faber.

India, according to PwC, in 20-30 years will become a second largest economy in the world similar to China. He also highlighted that only marginal amount of domestic saving find its way to Indian equity markets.

The wealthy families should at least put 20 percent of the money in Indian equities or Indian properties and direct investment because it is time to look forward.

Today, US stock market is 53 percent of the global stock market capitalisation now. But, in 10-20 years, it will be reduced to 20 percent and India and China will hog lion share up to 50 percent, highlights Faber.

- Source, Money Control

Saturday, June 3, 2017

Most Stocks Are Going to Lose Money - Except Mining Stocks

Well, basically some people say that the central banks are out of bullets. This is not my impression. They can keep on printing money and boost asset prices where by not all asset prices will go up, some will go up and some will go down. But the point I want to make is the central banks are not really out of bullets. The economy, if it weakens some stocks will outperform others, in other words recently you’ve seen the weaker in automobile stocks, so there is still a selective process in the market. The stocks that have gone up the most recently are actually mostly companies with very little earnings, very high evaluations, Tesla, Amazon, Netflix and so forth and we’ll have to see.

All I can say is when I look around the world, I don’t see any particularly good values in the U.S. except in mining companies and I think some of the interest rate sensitive stocks are again relatively attractive because I expect the economy to disappoint, especially if the Fed continues to increase interest rates and so a short increase in interest rates could mean some further weakness in bond prices but eventually bond prices could rally again and this is my view that the U.S. by any standards compared to historical evaluations, compared to Europe, compared to Asia, compared to emerging markets the U.S. is very expensive. Now, can it go up another ten percent? Maybe 20 percent? Yes, between December 1999 and 2000 March 21 when the stock markets peaked out the Nasdaq was up more than 30 percent, but was it a good buy? No, everybody who bought at the time in the first three months of 2000 lost money.

So, my sense is that yeah people can buy stocks here but most of them are going lose money with the exception in my view, that mining stocks will perform reasonably well.

- Source, Marc Faber