Faber Says U.S. Stocks `Pricey,' Favors Emerging Markets

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for global stocks and investment strategy. Faber speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Listen to the Market, Fed May Intervene

Marc Faber, publisher of the Gloom, Boom & Doom report, discusses what he sees as the fundamental policy mistake made by global governments and what markets are trying to tell investors. He speaks on “In The Loop.”

- Source, Bloomberg

Emerging Markets Have Done Fantastically Well

The Gloom, Boom & Doom Report Editor and Publisher Marc Faber discusses his outlook for the markets on “In The Loop.” (Source: Bloomberg)

Investors Recognizing Global Growth Slowdown

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt Miller, Scarlet Fu and Olivia Sterns on Bloomberg Television's "In the Loop." Bloomberg View columnist Barry Ritholtz also speaks. (Ritholtz is a Bloomberg View columnist. The opinions expressed are his own. Source: Bloomberg)

Geopolitical, U.S. war in Asia, Asian stocks

“The other issue that is not frequently discussed is the increased tensions in southeast Asia. China is a huge power; it needs resources. It will have to make sure the resources will always flow towards China, notably oil, iron ore and copper, and the U.S. has had this pivot to Asia which they declared about two years ago…which if you are Chinese, it’s a hostile move.”

Hold Treasurys Despite Low Yields

There is "nothing attractive" about Treasurys at the moment says Marc Faber, publisher of The Gloom, Boom & Doom report, but investors should still hold them to offset risks.

Many Stocks Are Already Down

Marc Faber discusses the oncoming stock market crash. He appears on CNBC. Stocks are likely to fall further.

Rajan Right In Warning Of A Crisis

Emerging markets are closely watching the Federal Reserve’s Quantitative Easing program as it reaches its final leg.

Earlier in response to a Bloomberg TV India query, RBI Governor Raghuram Rajan had warned that the probable rise in developed markets’ interest rates may create some jitters across the Indian markets. Harsha Subramaniam discusses the same with Marc Faber, Editor, The Gloom, Boom & Doom Report.

Social Media Stocks Are Overvalued & In Bubble Phase

Marc Faber believes that the tech sector is in a bubble that is about to pop. He has always been a firm believer of gold and hard assets. Which would you rather own?

Many investors have speculated that the technology industry has been in a bubble recently due to the Federal Reserve's aggressive monetary policy initiative of low interest rates and monetary expansion.

Raw Uncut Footage of Marc Faber Home Interview

Raw uncut footage of a Squawkonomics Home Interview with investment legend Dr. Marc Faber. Dr. Faber discussed with Keith Hilden of Squawkonomics about Bitcoin vs. gold, the Vietnamese investment environment, the South China Sea, Ukraine vs. Russia investment, the question of whether Africa will emerge, and the People's Bailout, bailing out Main Street rather than Wall Street.

Only Asset Class That is Relatively and Absolutely Depressed is Gold & Silver Shares

This week we are kicking off the relaunch of Palisade Radio to mark our one year anniversary and over 100,000 views to date. We have put together an all star line up of industry experts that include Jim Rogers, Doug Casey, Eric Sprott, Rick Rule, Frank Holmes, James Turk, and today on the show with us is renowned investor Marc Faber.

When speaking about an imminent stock market correction, Marc Faber argues that since the market hasn't had more than a 10% correction since 2011, it is likely that we will see a 30-40% decline in the not too distant future.

Marc has witnessed many bull markets and crashes in his career. Marc says that bull markets frequently go on for longer than expected, but the current bull market is already very old, and has been going up steeply since 2009 – in other words, more than 5 years old. “The one thing I can say, is that we are in an aging bull market, and the recovery has lasted longer than the typical recovery phase over the past 100 years.”

We ask Marc if the Fed's current slowdown in tapering will be reversed in a stock market correction? Marc points out that whenever there is a problem with liquidity in the markets (1988, 2000, 2007), the Fed has stimulated the economy by injecting liquidity, so it's not unlikely that the Fed will again try to support asset markets. The problem is when this goes on long enough, numerous assets aren't affordable for the majority of people. The impact of this may be negative for the economy, because some asset prices may rise disproportionately in comparison to other prices.

In the multi year low in mining equities, Marc says that general assets are very high right now. And the only asset class that in Marc's view are beaten down now are the gold and silver mining shares. When looking at the Dow Jones Index in comparison to the GDXJ(junior gold mining stocks index), the underperformance from the GDXJ has been colossal. As a contrarian or as a value investor, Marc sees reasonable value in the gold mining stocks right now. Government bonds and other assets are essentially inflated, but the gold mining stocks are deflated.

Speaking on the influx on gold into Asia... Marc thinks it's an interesting situation, because in the west we have rumors of central bank's manipulation of the gold market to keep the price depressed. Marc believes that these rumors are insensible – the West should want to sell their gold at a high price, not at a low price point.

Finally, in the last 20 years, there has been a huge increase of wealth in Asia. The increase in gold purchases in Asia, comes from a growing population, and a population which is increasingly affluent. Marc says that in terms of the Asian stock markets, they are relatively depressed in comparison to the US stock markets, and there is better value there.

Dr Faber publishes a widely read monthly investment newsletter "The Gloom Boom & Doom Report" report, which highlights unusual investment opportunities, and is the author of several books, including “ TOMORROW'S GOLD – Asia's Age of Discovery” which was first published in 2002 and highlights future investment opportunities around the world. “ TOMORROW'S GOLD ” was for several weeks on Amazon's best seller list and is being translated into Japanese, Chinese, Korean, Thai and German. Dr. Faber is also a regular contributor to several leading financial publications around the world.

Faber Thinks Gold Has Bottomed

Marc Faber of the Gloom Boom & Doom Report thinks geopolitical issues will become more important for US markets, and says he thinks gold has bottomed.

Faber tells FOX Business Network that the geopolitical issues may well stretch beyond Iraq and Gaza. “There has been some reaction [in Europe] but there hasn’t been much reaction in the U.S. yet,” he says. “I think that geopolitical issues will become more important. At the present time what is dominating the geopolitical discussion is what is happening in the north of Iraq, ISIS and in the Gaza stretch and in Syria but it could spread out to Saudi Arabia. Because, don’t forget Saudi Arabia is a huge border with Iraq and also it could spread out into Turkey and then it obviously wouldn’t be very favorable for global trade.”

As for what he holds, Faber says that “basically I always own some shares, most of my shareholdings are in Asia. … I would own some gold, because I think the gold market has bottomed out. Year to date the junior gold mining index is up 40 percent.”

- Source, The Guru Investor