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.


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,