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

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

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

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

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

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

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

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

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.

- Source

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

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

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