- Source
Sunday, March 27, 2016
Marc Faber - "I Would Rather Want To Own Some Solid Currency, In Other Words Gold."
Wednesday, March 23, 2016
This Is Why Everyone Needs to Own Gold and Silver
Well, basically, the financial markets have been sick for quite some time. Emerging markets either never made a new high above the 2006, 2007 highs, or they peaked out in 2011, or some even later in 2014. Basically after about February/March 2015, they started to drift. And in the U.S., the indices were strong, but the average stock was down substantially in 2015. This is called weakness beneath the surface of the indices because an index, theoretically, could have 500 stocks and 499 decline, but one stock goes up a lot and drives up the index. So this happened last year, to some extent, in the U.S... you have the strong stocks, Facebook, Amazon, Netflix, Google, and maybe another 20 stocks that were going up. And at the same time, you have thousands of stocks that were acting badly and going down, which accounts for actually a horrible performance for most investors. Now in January, reality set in with the strong stocks, they're all down 20, 30, and sometimes even more percentages.
Well, basically, the financial markets have been sick for quite some time. Emerging markets either never made a new high above the 2006, 2007 highs, or they peaked out in 2011, or some even later in 2014. Basically after about February/March 2015, they started to drift. And in the U.S., the indices were strong, but the average stock was down substantially in 2015. This is called weakness beneath the surface of the indices because an index, theoretically, could have 500 stocks and 499 decline, but one stock goes up a lot and drives up the index. So this happened last year, to some extent, in the U.S... you have the strong stocks, Facebook, Amazon, Netflix, Google, and maybe another 20 stocks that were going up. And at the same time, you have thousands of stocks that were acting badly and going down, which accounts for actually a horrible performance for most investors. Now in January, reality set in with the strong stocks, they're all down 20, 30, and sometimes even more percentages.
Well, basically, the financial markets have been sick for quite some time. Emerging markets either never made a new high above the 2006, 2007 highs, or they peaked out in 2011, or some even later in 2014. Basically after about February/March 2015, they started to drift. And in the U.S., the indices were strong, but the average stock was down substantially in 2015. This is called weakness beneath the surface of the indices because an index, theoretically, could have 500 stocks and 499 decline, but one stock goes up a lot and drives up the index. So this happened last year, to some extent, in the U.S... you have the strong stocks, Facebook, Amazon, Netflix, Google, and maybe another 20 stocks that were going up. And at the same time, you have thousands of stocks that were acting badly and going down, which accounts for actually a horrible performance for most investors. Now in January, reality set in with the strong stocks, they're all down 20, 30, and sometimes even more percentages.
- Source, Marc Faber via FX Street
Sunday, March 20, 2016
This Is Why Everyone Needs to Own Gold and Silver
In a negative interest rate environment, zero-yielding gold and silver become a high-yield asset, according to perma -bear investor Marc Faber.
“Leave a million dollars with a bank, and in a year, you get only something like $990,000 back,” Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg. “I would rather want to own some solid currency, in other words gold.”
The yellow precious metal provides returns only through price gains; the same goes for silver.
Gold and silver have jointly been performing a “one-man show,” becoming this year’s best-ever investments, as they feed off the fact that about a quarter of the world economy is now facing negative rates in some form. Likewise, economic growth is faltering across the globe.
Gold and silver have rallied more than 10% since the beginning of the year, trouncing other commodities, sovereign bonds, major currencies, and most stock indices.
These two old precious metals are thriving, with investors speculating more central banks may adopt zero interest rates amid increasing uncertainty for the world economy.
The 10-year Treasury note has increased 3.9% this year, while platinum is up 4.3%. Meanwhile, U.S. stocks, oil, and the U.S. dollar are all in negative territory, with the e-mini NASDAQ 100 losing 10% and West Texas Intermediate (WTI) crude surrendering 15%. The U.S.dollar index is down 1.3%.
Faber said it’s more tempting to own a non-yielding asset, such as gold, when returns on other investments are hard to find.
Japan was the last economy to adopt negativerates late last month, with the aim of spurring growth. Its move followed similar ones taken by Denmark, the euro area, Sweden, and Switzerland.
Faber said in December that the U.S.is at the start of a recession and its stocks would fall this year.
“Leave a million dollars with a bank, and in a year, you get only something like $990,000 back,” Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg. “I would rather want to own some solid currency, in other words gold.”
The yellow precious metal provides returns only through price gains; the same goes for silver.
Gold and silver have jointly been performing a “one-man show,” becoming this year’s best-ever investments, as they feed off the fact that about a quarter of the world economy is now facing negative rates in some form. Likewise, economic growth is faltering across the globe.
Gold and silver have rallied more than 10% since the beginning of the year, trouncing other commodities, sovereign bonds, major currencies, and most stock indices.
These two old precious metals are thriving, with investors speculating more central banks may adopt zero interest rates amid increasing uncertainty for the world economy.
The 10-year Treasury note has increased 3.9% this year, while platinum is up 4.3%. Meanwhile, U.S. stocks, oil, and the U.S. dollar are all in negative territory, with the e-mini NASDAQ 100 losing 10% and West Texas Intermediate (WTI) crude surrendering 15%. The U.S.
Faber said it’s more tempting to own a non-yielding asset, such as gold, when returns on other investments are hard to find.
Japan was the last economy to adopt negative
Faber said in December that the U.S.
- Source, Profit Confidential
Thursday, March 17, 2016
Monday, March 14, 2016
Faber: China's Unwind 'Will Be a Disaster'
Thursday, March 10, 2016
Sunday, March 6, 2016
World 'crazy' to give central bankers power
The world must be "crazy" to give so much power to central bankers, famed bear Marc Faber told CNBC Friday, calling them "a bunch of professors" whose monetary policy programs have been a "complete failure."
Marc Faber, the editor and publisher of the Gloom, Doom & Boom Report (earning him the moniker "Dr. Doom"), added that he questioned central bank policymakers and the quantitative easing (QE) programs they launched in the U.S., euro zone, U.K. and Japan.
"We all agree on one thing, that the market economy functions best because the opposite is socialism, communism and central planning, which has been a complete failure, but now democracies have implemented a system that is basically run by a bunch of professors and they target inflation,
- Source, CNBC
Thursday, March 3, 2016
Markets finally adjusting to reality that we're entering recession
Monday on CNBC's "Fast Money," the Gloom, Boom & Doom Report publisher reiterated his bold call that stocks could see a sudden and detrimental crash, similar to what was witnessed in 1987.
"[The market] will remain very volatile because interventions with fiscal and monetary policies, instead of lowering volatility they postpone it, and then it explodes," he said. The S&P 500 has fallen more than 8 percent since the Federal Reserve raised interest rates last month, and the U.S. markets saw their worst start to a year in history.
Recent volatility aside, Faber has been calling for a catastrophic market event for some time. In July 2015 he said stocks could fall up to 40 percent and in April 2014 he said he expected to see a 1987-type crash in the next 12 months. Since his April 2014 call the S&P 500 has returned more than 3 percent.
"The average stock in the U.S. is already down 26 percent from its 52-week high and there are a lot of stocks that are down 50 percent or more," he said. "The indices have hidden the weakness beneath the surface and basically the market has been weak the whole time."
- Source, CNBC
Saturday, February 27, 2016
Dr. Doom: Outlook 'so depressing' need to swim in beer
But the noted bear at least found a sense of humor on Wednesday into which he could channel his bleakness.
The publisher of the "Gloom, Boom & Doom Report" told attendees at the annual "Inside ETFs" conference that the medium-term economic outlook has become "so depressing" that he may as well fill a newly installed pool with beer instead of water.
Drinking up seems to be Dr. Doom's only answer for investors to get through this market.
- Source, CNBC
Wednesday, February 24, 2016
Faber: Can't see another bull market in my lifetime
Still, the Gloom, Boom & Doom Report publisher sees a potential recovery for some emerging market economies, particularly Russia and Brazil, which have endured a recent slowdown.
"There are some that are extremely depressed that could have large rebound potential," Faber said during a Tuesday evening panel discussion at the ETF.com Inside ETFs conference in Hollywood, Florida.
Stock prices have broadly fallen worldwide this year, with lower commodities prices and fears of a global slowdown contributing to investor concerns. Economies dependent on natural resources have been hit particularly hard. Brazil and Russia, once stars of the emerging world, have been damaged by oil as well as political issues.
While Faber has made a name on pessimism, he contended that bright spots for potential growth still exist in emerging markets. He pointed to Cambodia and Vietnam, among other Asian economies.
- Source, CNBC
Thursday, February 18, 2016
U.S. Economic Collapse: Marc Faber Has a Dire Warning for Americans
The Federal Reserve’s recent rate hike may have breathed some life back into the economy, but “Dr. Doom,” a.k.a.Marc Faber, is warning Americans of a U.S. economic collapse in 2016.
Known for his doom and gloom commentary, investor-turned-analyst Marc Faber is predicting that the U.S. stock market will be heading for a fall in 2016. According to Faber, a recession is already upon us and the signs will, sooner or later, become more obvious.
Speaking with Bloomberg, Faber said that the median price-to-earning (P/E) ratio for U.S. stocks is relatively high, an indication that the market is inflated and the stock market bubble could burst at any time, sparking an economic collapse. (Happy New Year, huh?)
Now, Faber may have been wrong on some of his past predictions, but the current economic conditions largely agree with his forecast for the U.S. economy in 2016.
Take, for instance, this year’s global corporate default rate. More companies from the U.S. have defaulted on debt this year than companies from any other country.
Bloomberg reports that a whopping 60% of this year’s global defaulters have been U.S. companies, with the second biggest defaulters being the emerging markets at only 23% (Source: “U.S. Companies Led the World in 2015 Debt Defaults, S&P Says,” Bloomberg, December 28, 2015.)
Worse yet, the S&P is expecting the defaults to increase as we head into 2016, with the majority of the defaulters emerging from the energy sector. It’s currently facing its worst price slumps in years.
According to Faber, long-term Treasury bonds now look like better investments than U.S. stocks. Nonetheless, investing in the emerging markets makes better sense to him than investing in the U.S. He particularly mentions the Vietnamese stock market as a good alternative to the U.S. for equity investment.
Faber also finds the real estate markets in Portugal, Spain, Italy, and the Indo-China region as lucrative investment opportunities for the long haul. (Source: “Faber Seeing Recession Clashes With Yellen, Likes Treasuries,” Bloomberg, December 28, 2015.)
Faber’s preference for the emerging markets over the developed markets may have to do with the problem of the U.S. debt crisis and rising debt plaguing all big world economies, including China and the eurozone. From East to West, virtually every big economy is now heavily debt-laden.
Take a look at the U.S. federal debt as a percentage of the gross domestic product (GDP), which is hovering close to all-time highs. In fact, according to CNBC, last month, the U.S. debt distress ratio, a measure of risk in U.S.debt , hit its highest level since the Great Recession highs in 2008–2009. (Source: “Debt distress level at highest since recession,” CNBC, December 28, 2015.)
All these signs reiterate Marc Faber’s stance that the much-dreaded U.S.economic collapse may soon be upon us. I have only one piece of advice for my readers: invest wisely!
Known for his doom and gloom commentary, investor-turned-analyst Marc Faber is predicting that the U.S. stock market will be heading for a fall in 2016. According to Faber, a recession is already upon us and the signs will, sooner or later, become more obvious.
Speaking with Bloomberg, Faber said that the median price-to-earning (P/E) ratio for U.S. stocks is relatively high, an indication that the market is inflated and the stock market bubble could burst at any time, sparking an economic collapse. (Happy New Year, huh?)
Now, Faber may have been wrong on some of his past predictions, but the current economic conditions largely agree with his forecast for the U.S. economy in 2016.
Take, for instance, this year’s global corporate default rate. More companies from the U.S. have defaulted on debt this year than companies from any other country.
Bloomberg reports that a whopping 60% of this year’s global defaulters have been U.S. companies, with the second biggest defaulters being the emerging markets at only 23% (Source: “U.S. Companies Led the World in 2015 Debt Defaults, S&P Says,” Bloomberg, December 28, 2015.)
Worse yet, the S&P is expecting the defaults to increase as we head into 2016, with the majority of the defaulters emerging from the energy sector. It’s currently facing its worst price slumps in years.
According to Faber, long-term Treasury bonds now look like better investments than U.S. stocks. Nonetheless, investing in the emerging markets makes better sense to him than investing in the U.S. He particularly mentions the Vietnamese stock market as a good alternative to the U.S. for equity investment.
Faber also finds the real estate markets in Portugal, Spain, Italy, and the Indo-China region as lucrative investment opportunities for the long haul. (Source: “Faber Seeing Recession Clashes With Yellen, Likes Treasuries,” Bloomberg, December 28, 2015.)
Faber’s preference for the emerging markets over the developed markets may have to do with the problem of the U.S. debt crisis and rising debt plaguing all big world economies, including China and the eurozone. From East to West, virtually every big economy is now heavily debt-laden.
Take a look at the U.S. federal debt as a percentage of the gross domestic product (GDP), which is hovering close to all-time highs. In fact, according to CNBC, last month, the U.S. debt distress ratio, a measure of risk in U.S.
All these signs reiterate Marc Faber’s stance that the much-dreaded U.S.
- Source, Profit Confidental
Monday, February 15, 2016
Stocks Heading Lower, Earnings Outlook Poor
For the second Monday in 2016, stocks weakened considerably, with the three major indexes down between about 0.30% and 1% in afternoon trading. While many market watchers point the finger at China, one says that scapegoating is way off base.
“The analysts and the strategists and the economists who got it all wrong about the U.S. now blame China for the market decline, when in fact most stocks began to decline in November 2014,” said Marc Faber, editor of the Gloom, Boom & Doom Report, speaking to Yahoo Finance early Monday. “And [the S&P] peaked out in May 2015 at [about] 2,134.”
The so-called experts, Faber explains, “kept on being bullish about how great the U.S. economy was doing … even when housing stocks went down, auto stocks went down …They kept the bullish view that the U.S. was above everyone else. Now, they blame China.”
Rather than focus on positive economic signals, the portfolio specialist — who spoke to Yahoo Finance from Thailand — said, “I look at stock performance. Most homebuilders are down more than 20% [or] 30%. Why is GM down more than 20%? Why are most stocks on the New York Stock Exchange down more than 20%? They are down more than 20% because the earnings outlook is poor, and because the economic expansion in the U.S. has slowed down meaningfully.”
These figures should be driving portfolio expectations, he adds. “At the present time, I'd be surprised if there is any growth at all in the U.S.”
Also on Monday, Bank of America highlighted a bearish indicator: weakening demand for rail transit.
"We believe rail data may be signaling a warning for the broader economy," a Bank of America research team explained in a note. "Carloads have declined more than 5% in each of the past 11 weeks on a year-over-year basis.”
Though one-off volume declines appear from time to time, “The current period of substantial and sustained weakness, including last week’s 10.1% decline, has not occurred since 2009," the bank stated.
“The analysts and the strategists and the economists who got it all wrong about the U.S. now blame China for the market decline, when in fact most stocks began to decline in November 2014,” said Marc Faber, editor of the Gloom, Boom & Doom Report, speaking to Yahoo Finance early Monday. “And [the S&P] peaked out in May 2015 at [about] 2,134.”
The so-called experts, Faber explains, “kept on being bullish about how great the U.S. economy was doing … even when housing stocks went down, auto stocks went down …They kept the bullish view that the U.S. was above everyone else. Now, they blame China.”
Rather than focus on positive economic signals, the portfolio specialist — who spoke to Yahoo Finance from Thailand — said, “I look at stock performance. Most homebuilders are down more than 20% [or] 30%. Why is GM down more than 20%? Why are most stocks on the New York Stock Exchange down more than 20%? They are down more than 20% because the earnings outlook is poor, and because the economic expansion in the U.S. has slowed down meaningfully.”
These figures should be driving portfolio expectations, he adds. “At the present time, I'd be surprised if there is any growth at all in the U.S.”
Also on Monday, Bank of America highlighted a bearish indicator: weakening demand for rail transit.
"We believe rail data may be signaling a warning for the broader economy," a Bank of America research team explained in a note. "Carloads have declined more than 5% in each of the past 11 weeks on a year-over-year basis.”
Though one-off volume declines appear from time to time, “The current period of substantial and sustained weakness, including last week’s 10.1% decline, has not occurred since 2009," the bank stated.
- Source, Think Advisor
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