Monday, June 29, 2020

Marc Faber Discusses Why You Need To Prepare For What Is Ahead


My guest in this interview is Dr Marc Faber. Dr. Faber is the editor of the Gloom, Boom & Doom Report. He is referred to as the Billionaire they call Dr. Doom in Tony Robbins book, Money Master The Game. In this episode, we will look at what the global economy and markets are telling us and the brewing global pension crisis.

- Source, Cashflow Ninja

Friday, June 12, 2020

Dr Marc Faber: How Is Silver $15 With Unlimited Fed QE


Does it seem somewhat bizarre that with the Fed running an open-ended hyperinflation campaign, that silver is still trading at $15? Dr. Marc Faber of the Gloom Boom and Doom Report finds it odd, although simultaneously one of the more attractive investing opportunities most have ever seen. Dr. Faber also comments on the current Fed policy, how it’s impacting the world, and how this will all play out.

- Source, Arcadia Economics

Monday, June 1, 2020

Fund manager warns investors could get hit with two crashes by end of the year

Michael Gayed called for a double-digit drop on the S&P 500. He followed that timely prediction in March with a forecast for a melt-up in stocks at the end of the month. He backed up that outlook in an interview with Bloomberg radio.

Clearly, he’s had his finger on the pulse of this volatile market since the coronavirus began spreading in the United States — just look at the 34% rally in his ATAC Rotation Fund ATACX, -1.10% for proof that his methods, in this climate at least, are paying off nicely.

If he’s got it right again, the pain is far from over for investors.

“Risk-off is about to return in two waves — first bonds, then stocks. Two crashes,” Gayed, who also publishes the Lead-Lag Report, told MarketWatch over the weekend.

He explained that he sees a “significant risk” that the yield curve steepens in a way that will shock markets and trigger a crash in Treasurys TMUBMUSD10Y, 0.678% .


“Reflation bets are increasing everywhere, and oil printing a negative price in the face of that suggests there is a very real feeling that global central banks and governments will stop at nothing to counter the deflationary forces of staying at home,” Gayed said. “Factually, inflation expectations have been rising alongside food prices due to supply-chain issues. Combined with unlimited QE, which in the past has caused yields to rise, it looks like bonds collapse first before stocks.”


He also touched on a theme that has many investors, especially the mom-and-pop types, scratching their heads. How can stocks continue to rally against what’s shaping up to be a depression in the economy? “The greatest disconnect in history,” as Gayed describes it.

Here he is talking about that “disconnect” last week with famed bear Marc Faber:


Ultimately, Gayed expects to see yields spike as they did prior to the 1987 crash.

“Should that occur, as I think is likely,” he said, “the conditions then would set up for another stock market crash afterwards as the overreaction to the reflation narrative comes to grips with the facts on the ground that life, at least for now, is going to look and feel very different for some time.”

- Source, Market Watch

Friday, May 22, 2020

Investment expert Marc Faber: There are opportunities in emerging markets including Turkey

Swiss investor Faber, publisher and editor of The Gloom, Boom & Doom Report, assessed the effects of the coronavirus outbreak on the economy.

Faber, he peaked in February of shares in the United States, noting that compared to the US are currently growing markets in extremely low levels, "I think emerging markets with lower levels, including Turkey (future period) could rise again quickly. Mart in Market beginning in sales was made more than necessary. for investors in emerging markets will have the opportunity to win over 2-3 months. in Turkey included. " he spoke.

- "The financial and monetary policies implemented by the USA are extremely dangerous"

Stating that the US dollar is strong against the currencies of the markets that have been developing for a long time, but this situation may change, Faber said:

"By this time, the US dollar gained strength, gained 20 percent against the Brazilian real and the Mexican pesos. Last year, the Turkish lira also lost about 20 percent against the US dollar. We see that it continues this year as well. The Russian ruble also lost 20 percent against the dollar. "The dollar was very strong. But when I look at the US's financial deficit and money-making, I do not believe that the dollar can continue to be a strong currency. I think the financial and monetary policies implemented by the US in the long run are extremely dangerous and negative for the dollar."

- Winners and losers of the crisis

While evaluating the negative effects of the coronavirus epidemic on economies, Marc Faber said, "The programs implemented by governments as they move towards the crisis will have a serious economic impact. Western economies are already having a serious pre-coronavirus challenge. The Fed started to intervene in the repo market in September of last year. Along with the coronavirus large monetary and financial measures have been implemented. Many businesses will not reopen, go bankrupt, and many people will remain unemployed. " used expressions.

Stating that the global economy system will change drastically after the coronavirus epidemic is taken under control, Faber said that the revenues of the airline companies decreased by 95 percent and this situation will improve when the flights start, but the previous high levels may not be reached.

Faber said, "Some people will think 'we don't need to travel.' Some people will prefer to have conversations over Skype or Zoom rather than visiting their customers. People's behavior will change." he spoke.

Stating that the new system is the new winners and losers, Faber said, "Platforms such as Amazon, Netflix, Zoom have won. Retailers are losers ... Some big retailers (after quarantine) will never be able to open their shutters again." said.

- "People will move away from cities"

Swiss investor Faber stressed that retail companies have to be restructured and continued:

"If they do not change their operating models, they cannot be operational. For example, offices… There is an increasing tendency for people to work from home. Maybe they will only meet their employees once a week. There is no need for everyone to go to the office every day. "Maybe they will have a small office next to their house."

- "I don't think of selling my gold"

Marc Faber, his investments; He stated that he is located in 4 basic fields: real estate, stocks, bonds and precious metals.

Faber said that this year, precious metals and US treasury bonds are performing well with the strong US dollar, but US treasury bonds may not perform well in the next 2-3 weeks or 2-3 months.

Stating that he thinks gold is a bit too popular, Faber said, "This year may be a year of correction under the other. On the other hand, I do not intend to sell my gold. They are like my pension fund.

- Source, Translated to English from Haberturk

Monday, May 18, 2020

Marc Faber: Placing everyone in confinement is pure tyranny

On a personal level, it was not the worst crisis I have ever faced. I had many crises when I was younger, but today I have a big house, a big garden and my own office. Consequently, the current crisis affects me less on a personal level.

But things that I never imagined are happening : public authorities which paralyze an entire country, close shops and cafes, and which, like here in Thailand, prohibit the sale of alcohol. I never thought it could happen. Democracy is going up in smoke. The government has taken the reins and behaves like dictators.

Is containment not in the interest of the health of the population?

Statistics show that there are more deaths from diabetes or cardiovascular disease than from coronavirus victims. The measures taken are disproportionate to the disease and will cause more deaths than the Covid-19. It is the poor who will suffer the most from confinement.

But don't get me wrong: I am in favor of quarantining infected people. However, I believe that it is pure tyranny to confine everyone.

How do you explain this decision?

Don't ask me to explain the logic of policy makers. It is a fact that many countries are not led by their Prime Minister, but by incompetent bureaucrats who are not affected by containment and who continue to receive their salaries. But many citizens will find themselves in poverty because of the lockdown.

- Source, Translated from Lecho

Thursday, May 14, 2020

Wall Street Bulls Battle the Bears in Mother of All Recessions

FedMed proved dead awhile ago with the whole Bulls team looking dead on the field, until Team Trump, the owner’s club, joined Coach Powell. Then Powell’s coaching team upped its game; and, finally, the Wall Street Bulls revived. “Big deal!” the Bears now yell. “Let’s get back to playing ball!”

All the government juices served in the Bullpen may have floated the dead Bulls into another rally. Yay Bulls! But they’re dead, even if they dance like phantoms.

(By the way, this article is long, but it’s not half as long as listening to an actual ball game, and it’s a whole lot more important, so hang in there; or take an intermission halfway through, because there is a lot from a short time span to cover in order to fully lay out how bad this looks for the Bulls at a time when people still think they’re making a comeback.)

The Bulls woke up during a frantic locker-room pep talk then went back out to the field and played their hardest. They now anticipate that the worst of their game is over and they are about to make a come-from-behind win. I forecast, however, they are about to get their heads stomped into the Bullpen dust … again.

In fact, that will happen again and again because we are only in the third inning after the Bulls scored almost a 50% comeback, and they look wrung out like it’s game over when we have yet to even see what real carnage the Bears can bring. The Bulls are about to find, as always the case with these World-Series-sized Wall-Street wipeouts, they’re just caught in a trap set by the Bears.

In all their irrational, greedy, drunken exuberance, the Bulls mistook this to be the the final inning for a return home to victory … because the Wall Street Bulls just can’t wait to get back into the money-making game that Coach Powell, who moved onto their team from the Federales ten years ago, pep-talked them into.

The Bulls motto under Powell and former coaches Yellen and Bernanke became “Never fight the Fed.” That has taken them to victory for years, but their streak has ended, and it’s going to end in face-wiping disgrace.

As I’ve said for years right along side their rise, Coach Powell and his gang will not be able to save them when the next recession hits, and we’re there! The Bears are now coming back into the ball field for cleanup.

The Bulls are full of … something.

The Bullheads, as their fans are called, including the talking heads on TV that cheer them on during inning changes, are about to see the biggest defeat in history. Bear Coach Bill Bonner recently pointed out some of the world’s dumbest headlines pumped out by the Bullheads:

Our economy is the greatest it has ever been!Donald Trump, 20 January, 2020, Team Owner.

Bloomberg Economics sees global growth slowing to 1.5% year on year.Bloomberg, 9 February, 2020, Co-Owner of the Wall Street Bulls, betting for a slight edge in victory by the end of the 2020 series.

‘There is no systemic risk. No one is even talking about that.’Goldman Sachs conference call to the team, mid-March, reported by Marc Faber

Oh my gosh, the outrageous volume of completely asinine headlines and comments I could point out from the most popular sportscasters in finance and the Bulls top leaders just a month ago; but I’ll stay with Bonner’s short list as exemplary and move on to his game commentary as one of the few worth listening to:

The real truth?

The initial jobless counts by the Bears against the Bulls at the top of the second inning pitched the biggest strikes against the Bulls in US history.

Bloomberg: ‘US Jobless Claims Soar to Once-Unthinkable Record 6.6 Million’. The figure topped all analyst estimates and compared with a median projection of 3.76 million.Bonner in The Rum Rebellion

And still the Bulls rallied and then rallied again when the nasty strikes happened again.

This is closer to real Black Swan stuff. This week’s unemployment filings, compared to the last half-century, are considered by frequentist statistics as a 30-sigma event: less likely to happen than if you had to select one atomic particle at random out of every particle in the universe, and then randomly again select that same particle five times in a row.

‘A 30-sigma event should be outrageously unlikely, at universe-scale. But they happen. And when they do, they warn us: the problem is not that the universe didn’t behave correctly. The problem is that we were wrong.’

Bonner was referring to another team known as the Black Swans that has been known in the past to beat the Bulls down just when they thought they were winning. The recent voluntary shutout that almost instantly swept the globe as people stayed at home and sheltered in place to watch the game is something never seen in the history of the WORLD! Yet, the Bonehead Bulls, as they are about to become known, are still betting up! You could not find a more extraordinary example of boneheadness in world history.

And this is supposedly Wall Street’s greatest team. So, after the most prolonged scoring by the Bears (dead-bull bounce as I call it) in Wall Street’s history, we now get to see the Bulls pulverized all over again. Overconfident from years of winning, due only to steroids provided by Powell and, of late, by Team Owner Trump, they actually were in such a stupor they believed the game had turned in their favor even though they were still down by half; yet, the real bad news for the Bulls is just getting started! The Bullheads cheering them on are in their own mind-bending crowd, so let the trouncing begin in earnest as the Bears take the ball game back over.

We watched the tape. The US economy is in freefall. Stock market dip-buyers should be running scared.

But wait…no! Bad news is good news…up is down…dumb is smart. They bid up the Dow more than 400 points.

Go figure. The worst economic news ever received…and the stock market goes up? Have investors completely lost their minds?

And then up and up and up again. The Bullheads wrote loops of commentary to each other about how smart the Bulls were for rallying on the world’s biggest crash, and they restored Bull confidence after one of their greatest inning crashes. The Bulls, the commentators said, were alive and well again! Some that I read said, “It’s now S&P 4,000!” (Ra Ra, Bulls.)

As the brighter Bonner went on to say, it all made some sort of bullheaded sense because the Federal Reserve just went all-in on the grandest bailouts in global history, while the Federal government also made bigger bailouts for the Bulls than it did during the Great Depression era defeat, which happened before the Bull’s ten-year run.

The Braindead Brainard-Fed Bulls took this as certain proof new victory is coming because they have been conditioned to think bailouts can accomplish anything. In my view, the new bailouts are already larger than anything we saw during the Bulls’ Great Recession defeat, but they will be ineffective anyway. Team Trump and the Fed Heads who own and manage the Bulls already got away with bailing out the losers! We’ll see a $4 trillion USA deficit before the year is over.

We saw …

… a massive infrastructure package upgrading the nation’s broadband, road and water systems, Speaker Nancy Pelosi said Wednesday, in the next installment of Congress’ effort to help the country weather the destructive blows inflicted by the coronavirus outbreak.’

That isn’t going to save the Wall Street boys.

Now, the Feds are in charge. The government will soon be spending over half GDP. And they’ll destroy the rest in good time. How? The old-fashioned way…a stark-naked, third-world-ish, sh*thole country, money-printing lollapalooza. We’re all socialists now!

Indeed we are. (At least, as a nation, though not yet all as individuals. I’m still here; you’re still here; we’re not that dumb to think socialism, of all things, will save us from the unbridled corruption we’ve allowed to flourish in capitalism.)

The MMT-ers…the big spenders…the dreamers and schemers…the Hillarys, the Sanders, the big government lovers…all the jackasses in the DC metropolitan area — lobbyists, cronies, policy wonks. They all have their pulses revved up, their mouths slobbering…and their illusions in Full Retard mode.

Yup. They’re anticipating a strategy that’s been called the Big Bull Rush now that the owners have pumped in more bonus money than the players ever dreamed of for this next part of the game, but you can see the owners, when caught in candid photos, don’t look as enthusiastic as they pretend to be.

- Source, Goldseek

Monday, May 4, 2020

Marc Faber: A Strong Dollar Won't Survive The COVID-19 Pandemic


The U.S. dollar will not continue its current strength as both the government deficit and its monetary policies pose great dangers to the currency, a prominent international investor warned on Tuesday.

"So far the dollar has been very strong against some currencies, up more than 20% this year, against the Brazilian real and Mexican pesos, but if you look at the fiscal deficit of the U.S. and all the money printing, I just can’t believe that it will continue to be strong," Marc Faber, a Swiss investor, told Anadolu Agency.

The dollar could be strong for another 10 days or so, but in the long run, the U.S. monetary policies are dangerous and negative for the currency, he added.

Saying that to date emerging markets have not rallied a great deal in the current crisis, he said there is a window of opportunity for the next two to three months to make some money in emerging markets, including in Turkey.

Bankruptcies

On the pandemic’s economic impact, Marc Faber said interventions by governments to stem the crisis will have serious effects.

Western economies already faced serious problems before the virus hit, he said, and now with the coronavirus crisis things will get worse, he added.

"The U.S. Fed started intervening in the repo market starting from September of last year. Then the coronavirus came and we had this huge intervention, monetary and fiscal measures,” he related.

"That is cushioning the recession and depression, but I think after all the restrictions are lifted, a lot of businesses won’t be opening, a lot of people will go bankrupt and companies will default."

Stating that the global economy system will change drastically after the pandemic is under control, Faber said that airline revenues plunged 95%.

He added that this situation will improve when international flight service resumes, but the previous high levels may be out of reach.

Some people will think they no longer need to travel and would prefer to talk by video link rather than face-to-face visits with customers, he predicted.

"People's behavior will change," he said

Stating that economies in the wake of the virus will have new winners and losers, Faber said: "Platforms such as Amazon, Netflix, and Zoom have won. [Brick-and-mortar] retailers are losers."

"Some big retailers will never be able to open their shutters again," he predicted.

- Source, AA.com

Monday, April 20, 2020

Marc Faber: On the Road to Perdition

According to an analyst, “12 months from now, no one will regret buying stocks,” which are “now at the lowest levels since 2016.” I agree that stocks are extremely oversold despite their sharp rebound in the last few days.

However, I am not so sure that stocks will be higher in twelve months. Nobody regretted not buying the Nikkei Average after the initial 30% decline in 1990 because the Japanese market continued the downtrend for much longer – admittedly with intermediate powerful bear market rallies. It finally bottomed out in 2008.

Similarly, from the March 2000 top the NASDAQ 100 dropped 40% to an intermediate low in May 2000 (two months after the top). From this intermediate low, a 3-month 41% rally followed, which led to renewed severe weakness and brought the NASDAQ 100 Index down to the ultimate low at 795 in October 2002 (down 83% from the March 2000 high). I am sure that nobody really missed anything for not buying the NASDAQ 100 after the first initial decline.

The economist JR Hicks opined about the 1929 crash and the depression that, "Really catastrophic depression is most unlikely to occur as a result of the simple operation of real accelerator mechanism; it is likely to occur when there is profound monetary instability – when the rot in the monetary system goes very deep." This was certainly the case in the late 1920s but probably far less so than what is now the case.

I need to warn my readers that this report is not exactly moral boosting and spirit lifting.

Regarding the Corona Virus please remember the words of Gustave Le Bon, In The Crowd he opined:

"Ideas, Sentiments, emotions, and beliefs possess in crowds a contagious power as intense as that of microbes….. A panic that has seized on a few sheep will soon extend to the whole floc. In the case of men collected in a crowd all emotions are very rapidly contagious, which explains the suddenness of panics."

- Source, Marc Faber

Tuesday, April 14, 2020

Marc Faber on the Global Pandemic and the New Climate we Find Ourselves in


Welcome to Climate & Capital's first market commentary video. Peter McKillop, founder of Climate & Capital, interviewed legendary investor Dr. Marc Faber from their respective homes. 

Dr. Faber is a Swiss investment adviser, analyst, author and founder of the Gloom, Boom & Doom Report, a popular online publication that "highlights unusual investment opportunities around the world." 

He met with Climate & Capital to discuss the economic impact of the COVID-19 pandemic: What will get better, what will get worse, and what just might become the new normal in a fast-evolving economy.



Friday, March 27, 2020

Marc Faber: This Is Not a Recession, It’s an Ice Age


Financial markets are facing their worst crisis since 1929, a veteran analyst told CNBC on Friday, as top economists downgraded their forecasts to point to an impending global recession. 

Even though stocks across Europe, the U.S. and Asia looked to be heading for some welcome reprieve on Friday, analyst Stephen Isaacs said the coronavirus crisis is “unprecedented” since there were already record levels of leverage and overbought stocks. 

“We came into this with all sorts of problems hiding within the momentum of a massive bull market, which again leads me to feel extremely concerned that the selling is only abating temporarily, and that we are still looking, unfortunately at a very, very difficult situation,” the chairman of Alvine Capital Management’s 
investment committee told CNBC’s “Squawk Box Europe.”

- Source, Ameer Rosic

Saturday, March 21, 2020

As the coronavirus outbreak expands to more countries, it may have adverse effect on stock markets

It seems the markets might not be away from the impact of the deadly Coronavirus. A report by Livemint showed that investors have been selling the stocks with Nifty 50 being down 7% from in the past six trading sessions.

On Friday, Bajaj Finance Ltd was trading 7% lower. Experts feel that the impact of the virus can potentially start a long-term global slowdown. The fall in the trade is also due to the present equity valuations which are already stretched.

The report further states that both domestic and global markets were already trading at record levels and extremely high valuations a month ago. Nifty soared to a price-earnings multiple of over 19 times on the financial year of 2021 earnings, which is quite worrisome. Any slowdown in the global markets will see the stocks getting re-priced at lower rates.

The larger concern remains to what extent will the markets be affected by the virus. Europe is now registering new cases while America has also seen a spike in cases. Global equity research firm Jefferies has warned that the outbreak of the disease can not just cause a problem for hospitals but also rattle the markets as well. Jefferies further noted, “If not managed correctly, this could significantly rattle markets.”

Tourism, as well as the airline sector, are in danger of shrinking if the virus remains rampant. Due to Wuhan being the origin point of this disease, prices of major metals are down. Sectors such as pharmaceuticals and upstream oil and gas companies are also vulnerable to a slowdown since China accounts for about 15% of the global economy.

Although India is not directly affected, a global risk-off mode means foreign investors will be shuffling their portfolios and gold to safe havens such as US Treasuries. So, prolonged uncertainty in the equity market cannot be ruled out until the impact of the virus can be quantified and curtailed.

The markets can regain itself, depending on the pace to which the virus can be contained.

According to Marc Faber, the coronavirus is just the catalyst to a decline which had started by ignoring the slowdown of the global economy since 2019. So the virus simply has enforced its impact. On Friday, the BSE Sensex plunged nearly 1,450 points amid rising concerns of the virus.

- Source, OP India

Wednesday, March 18, 2020

Press Panic Button, or Use Crash to Buy Stocks?

"If Indian stocks, the blue chips I am talking about, are selling at 40-50 price-to-earnings ratios, I think the market has a significant downside risk, given that the coronavirus is destroying the entire conference industry, the entire travel industry, business travel, the hospitality industry. 

For a while, nobody is going to travel. So I am telling you India is as vulnerable, if not more, than other markets."

Friday, March 6, 2020

Marc Faber Explains the Risk Off Mode


Oil stocks trading at depressed valuations. Developing real estate will add value to a portfolio, says Marc Faber. Tune in for the exclusive conversation on the impact of coronavirus on business, global currencies, and precious metals.

Tuesday, March 3, 2020

Marc Faber: What Do Low Crude Oil Prices Mean?


Investors should not panic & sell-off on the rebound. India is a special case; low crude oil is beneficial for India to an extent, says Marc Faber to ET NOW.

Sunday, February 23, 2020

Marc Faber: Prime Minister Modi is on the Right Track


On sidelines of the Traders Carnival in Thailand, Anuj Singhal caught up with Marc Faber for an exclusive interaction. Faber is all praises for Governor Rajan and says he has a very high opinion about PM Modi. Listen in.

- Source, CNBC

Wednesday, February 19, 2020

Mark Faber: Inflation or Deflation in 2020?


Dr. Mark Faber provides his views on the dollar and debt markets for 2020 and on geopolitics and global markets from his dwelling in Thailand.

- Source, Jay Taylor Media

Saturday, February 15, 2020

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.

- Source, Fox Business

Tuesday, February 11, 2020

Marc Faber on when doom arrives for Wall Street


‘Gloom, Boom & Doom Report’ Editor Marc Faber discusses his outlook for the markets.

- Source, Fox Business

Tuesday, January 21, 2020

Dr Marc Faber: The Fed Started QE to Infinity in 2008


While the Federal Reserve still has yet to admit that it’s running another quantitative easing campaign, Dr. Marc Faber of the Gloom Boom and Doom Report explained how in reality, when the Fed started QE in 2008, that was the beginning of QE to infinity. Dr. Faber talked about how the Federal Reserve has been following the script of the Bank of Japan for the last 30 years. 

Which hasn’t created wealth in Japan. And is not going to fix the underlying economic issues that the politicians in the west are doing their best to ignore either. He discussed the manipulation in the precious metals markets. 

What’s happening in the palladium and rhodium markets where prices have begun to go vertical. And how he’s positioning both himself and his clients for what’s about to come next.