Swiss investor Faber says now good time to invest in Turkish assets

Renowned global investor and markets commentator Marc Faber, best known for being a market pessimist which earned him the nickname "Dr. Doom", said Wednesday Turkish assets could present a good investment opportunity at the moment.

Although the economic strategist has been warning since 2010 that global markets are headed for a 1987-style market crash, Faber told Anadolu Agency (AA) in a phone interview that he didn't foresee such a grim future for the Turkish economy.

"People always say they would like to buy low and sell high. Well, Turkish stocks are valued in U.S dollars. At the moment they are within buying range. I am going to buy some Turkish assets, ETF's (Exchange-Traded Funds)," he said.

Stating that he already had some Turkish bonds, although not in very large quantities, Faber said now was a good time to invest in Turkish assets.

Faber, who is also the publisher of "The Gloom, Boom & Doom Report", said Turkey must reduce its sensitivities, narrow its trade deficit and close its current account deficit to not be affected by volatility in the coming period.

Reiterating that the foreign and economic policies of the United States were not right, the Swiss investor said: "Trump is not pursuing diplomacy in foreign policy. He is like a bull in a china shop. He keeps picking on everyone; there is no diplomacy whatsoever. "

"Turkey's Trump card is NATO. NATO has crucial bases in Turkey. Turkey has two options in the long-term; it can stay close to Europe and stay in NATO or join the Shanghai Cooperation Organization. This would indicate that Turkey has left the West or that it will be in less contact with it, becoming closer with Russia and China instead. This is an option in Mr. Erdoğan's hand. I think Trump does not understand that this is a very real possibility," he said adding that Turkey was not without alternatives.

Underlining that U.S. President Donald Trump's trade policies could drag the world into recession, Faber said, "Economists around Trump believe that imports from China are responsible for the U.S.' trade deficit. China is the indicator of the US.' declining competitive power. The U.S. has had low capital investment over the last 20-30years. Economists believed that consumption should be increased to increase growth. The result is naturally an increase in trade deficit. "

Faber pointed out that the consequences of the global trade wars initiated by the U.S. could be devastating, saying "Trade wars are complete madness. They are continuing at a time the global economy is already slowing down. Just look at copper prices now, for example, they have completely collapsed. This is a sign that the global economy is slowing down. I think we are headed towards a recession."

President Trump announced on Aug. 10 that the U.S. was doubling aluminum and steel import tariffs on Turkey, fixing them at 20 percent and 50 percent, respectively.

In retaliation, Turkey also increased tariffs on several U.S.-origin products, including alcohol and tobacco products and cars, according to a new presidential decree published early Wednesday in the official gazette.

- Source, Daily Sabah

Marc Faber: Obvious Trump trade is to own Russian and Kazakhstan

Marc Faber: Obvious Trump trade is to own Russian and Kazakhstan assets from CNBC.

Marc Faber: The Armegeddon is Coming

Dr. Marc Faber was born in Zurich, Switzerland and obtained a PhD in Economics at the University of Zurich. Between 1970 and 1978, Dr. Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In 1990, he set up his own business.

- Source, Old Radio

Trade Wars to Accelerate Decline of US Empire as China and India Dominance Grows

US influence on the global economy has been gradually falling, and emerging economies like China and India can overtake the US as global leaders, according to Marc Faber, editor and publisher of The Gloom, Boom & Doom Report.

“The US as an empire against the rest of the world peaked in 1950s or 1960s. Then, there have been other countries that have become more powerful, in particular China and now increasingly India. The US empire and its influence on the world is diminishing and has been diminishing for quite some time,” he told RT. The trade war may accelerate this “mutation” in the global economic balance “with other countries becoming more important and the US less important,”Faber said.

According to Faber, the US is likely to be the biggest loser from the trade war it started. “The winners in a real trade war would be everyone except the US. The Europeans would trade more with Asia, and the Asians would trade more with Europe than the US. There would be more trade between the emerging economies and China and vice versa,” Faber said.

Another winner from the trade would be Russia since China would buy more resources from the country, while Moscow would buy more from Beijing, he said.

The US stock market has thus far ignored the news about the global trade war, Faber notes. “But if there is trade war, it is not good for the global economic growth. The global economy is slowing down already. I think it would be a big mistake to go ahead with the trade war.”

The countries most exposed to the trade war in emerging markets are Brazil, Turkey, and Argentina, due to their fiscal problems, growing deficits, and weak currencies amid large amounts of foreign debt, Faber said.

With the global economy financed by soaring debt since the last global crisis of 2008-2009 another recession is likely to come, but its shape is not yet known, according to the investor.

Despite the recent strength of the US dollar, especially against the currencies of emerging economies, Faber says the trend will not continue in the long run. He says the best way to protect individual investments in times of turmoil is to diversify the portfolio with cash, bonds, precious metals, and real estate.

- Source, Russia Today

Modern Investing: Gambling in Disguise

Marc Faber: Won’t be surprised if Indian markets correct 20%

Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, said he would not be surprised if Indian markets corrected 20% from current levels, but did not give a timeline for such a correction. In a phone interview from Chiang Mai, Thailand, the Swiss investor expressed concerns over the trade war, and said it is not beneficial to anyone.

What do you think could be the repercussions of global trade war on the world economy and markets?

There is less or hardly any growth in Europe. The Chinese economy has been slowing down, as well as other Asian economies. The US stock market by any measure is highly priced.

We have recessions in Argentina, Brazil and Turkey. We have currency weaknesses around the globe in dollar terms, which is a sign of monetary tightening, and now we have also this so-called trade war. Some people may suffer more, and some less but a trade war cannot be beneficial for anyone. In general, it is not a positive for the global economy or the financial markets.

Indian markets recorded new high today (Thursday). Do you think the rally in India is sustainable or do you think there is a correction in the offing for benchmark equity indices?

When (Indian) market hit a high earlier this year in January, my sense was that high would be an important one, but we made a new high.

Let’s put it this way, when I travel around the world and I visit financial institutions, first time India is really a subject. For the first time, investors think that India has an experience and a meaningful fundamental improvement due to the Modi government. They are not sure if it is the right time to invest now in India. Over the next 10 years, we want to have some money in India, regardless.

If you look at the S&P (500), and Indian stock market over the next 10 years, you will make more money in India than American shares. This has been my view for the last three years, and this remains my view.

Of course, if the global stock markets are going down— all the major markets, except India are going down. When everything is weak, and India is still strong, I will be reluctant to buy the market which is strong. It (rally) may last a little bit longer but it doesn’t mean it is good value. Valuations are not attractive other than a few exceptions.

How do you see it faring from here?

The bull market in India started in late 2015, We have seen a big move, I wouldn’t be surprised if there is a 20% correction. I cannot give you a date though.

If you put all your money now in Indian stocks, the reward in my opinion will not be great, as there are internal and external risks.

- Source, Livemint

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Marc Faber: Geopolitics, Dollar Hegemony and Precious Metals

It's unfortunate that "hate speech" arbitrarily defined and dictated by the left is suppressing free speech and the search for objective truth. "Thank God white people populated America," uttered by Marc might have been said in a less offensive manner, but to remove the truth-seeking thoughts of a freedom-loving, non-racist intellectual of Dr. Faber's stature is unconscionable and ultimately destructive, most of all to minorities.

We are delighted to have Dr. Faber with us to discuss the global markets as he once did on all major business channels, at Barron's, and other mainstream print media. We ask Marc about Trump's economic policies, global monetary policy, stocks, bonds and precious metals, geopolitics, dollar hegemony, the Petro yuan, and much more.

- Source, Jay Taylor Media

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Marc Faber: If This Unfolds, It Will Radically Alter The World Overnight

Eric King: “I know you’ve had some issues coming into the United States, where you’ve been in an airport where they have taken you to the side and put you in a room (Dr. Faber laughs), which seems preposterous. But this move to more of a police state in the West, does that have you concerned?”

Dr. Marc Faber: “Well, that is another possibility, that we go more to a fascist regime rather than to socialism. That is a possibility that we need to entertain. And it is very clear to me, having grown up in the 1950s and 1960s, that today there is much more control of what you and I do. It’s stricter and more unpleasant…

We have far more regulations, far more laws, that actually are very negative for the small businessman, from which actually the economy grows the most. That also has a negative impact on growth. I would say whatever scenario you look at, the only scenario that could boost growth, briefly, substantially, would be war.”

- Source, King World News

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Marc Faber: There is Massive Fraud In This Financial Bubble

A big difference between the market today and that of the 1987 crash is unfunded pensions. Renowned investor Dr. Marc Faber, who holds a PhD in economics, says, “The unfunded liabilities have gone up. They did not go down...

- Source, USA Watchdog

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Marc Faber: I'd Rather Invest In Asian Over Western Countries

Marc Faber gives his up to date investment advice and discusses the current markets he is interested in most. Overall, he sees Asian markets as a safer place for your money, over Western markets.

- Video Source

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India is Doing Well and Will Continue to Do Well

"The rupee will be at these levels, maybe a rupee here or there. I don’t see rupee going to 75-76 to the dollar and there is no reason why it should. We have $400 billion of reserves and we are the most investible country. 

We have never had any defaults, our track record is tremendous compared to other emerging markets and our levels of debt are nothing as compared to China. So on all those parameters, I think India is doing well and will do well.

Always remember, Marc Faber, one of the gurus of emerging markets, he always said one thing, the locals know best."

- Source, CNBC

Experts think this trade war will be a fizzer. I hope this courageous guess is right

One of the staggering developments from the mad money world of stock markets is that US stocks rose overnight, with the Dow Jones index up over 180 points, as the deadline to President Trump’s trade war looms today. And what’s even more surprising is that some professionals reckon the market has priced in the effects of a trade war!

Gee I hope they’re right, but I don’t know how I or anyone could really test that.

This confidence that market experts know what lies ahead was captured by this from Jeremy Klein, chief market strategist at FBN Securities: “Any news we get on trade in the short term will be neutral or good,” he said. “We already know all the bad news that's out there on this issue.” (CNBC)

What he’s saying is that experts on the significant companies affected by a tit-for-tat trade war have worked out the profit effects of tariffs and then changed their valuation on that company. But those calculations operate off assumptions that might end up being wrong!

This is how the trade war should begin, with a U.S. Trade Representative statement saying tariffs on $34 billion of Chinese goods will take effect at 12:01 a.m. in Washington. Then China will return fire immediately. The assumption is that China will hit back with equal force. But what if they don’t, instead hitting harder than expected and on industries that were not expected to be affected?

All’s fair in love and war. And you can’t expect that a trade war will be fought out following some gentlemanly rules of engagement. Mind you, I hope it is, and I also hope the market experts have calculated the effects accurately. But I always argue that hope is not a strategy upon which you can build wealth in the stock market!

What worries me about this complacency on the trade war is that it comes when the doomsday drones are ganging up to ramp their warnings about an imminent recession and stock market sell off.

You shouldn’t be surprised about this, as since the end of the GFC this mob has tipped a Great Depression, countless market crashes and some have even had the Dow Jones plummeting below 10,000 while it’s now over 24,300!

Donald Trump has been seen as the trigger, with this one from Bloomberg showing how the negative nervous Nellies have been scaring us for some time: "Citigroup: A Trump Victory in November Could Cause a Global Recession!" (Bloomberg Financial News headline, August 2016)

And then this one: "A President Trump Could Destroy the World Economy!” (Washington Post editorial, October 2016).

Then there have been the likes of Harry Dent and Marc Faber who have been tipping a market Armageddon for at least three years, probably longer. These guys will get it right one day, after being wrong for a long time. And this trade war could be the trigger for them being free to boast about their insights.

All this comes at a time when investor surveys show that those playing the stock market are losing confidence. And some well-known fund managers have expressed their concerns about being long stocks, with the likes of Bridgewater Associates’ Ray Dalio saying he’s getting out of financial assets.

“It’s a classical late cycle story. So, when I was here last time, I said we were long and nervous. We are no longer long, we are increasingly nervous about this,” Roelof Salomons, chief strategist at Kempen Capital Management, told CNBC’s “Squawk Box Europe” on Thursday.

A late cycle represents an economy that has been growing, but is poised to fall into a recession, amid rising interest rates, lower profit margins and other negative economic headwinds.

And a trade war could be a cyclone, while the experts are treating it more like a zephyr. I’m gambling that these guys and their assessments are right because I think the current economic and corporate profitability stories are so strong. But I know I’m gambling.

If you can’t afford to gamble and see stock prices slide, then you might have to play it safer than me. But let’s all pray that this trade war doesn’t prove some Trump-haters right.

- Source, Switzer

UNSHAKEABLE : Your Financial Freedom Playbook

Marc Faber and Nomi Prins - The Real Danger

Dr. Marc Faber was born in Zurich, Switzerland and obtained a PhD in Economics at the University of Zurich. Between 1970 and 1978, Dr. Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In 1990, he set up his own business, Marc Faber Limited which acts as an investment advisor and fund manager. 

Dr. Faber publishes a widely read monthly investment newsletter, “The Gloom Boom & Doom Report,” which highlights unusual investment opportunities, and is the author of several books including Tomorrow’s Gold: Asia’s age of discovery which was a best seller on Amazon. Dr. Faber is known for his “contrarian” investment approach and charismatic personality. He became infamous after calling the 1987 crash in US equities. 

Nomi Prins is an American author, journalist, and Senior Fellow at Demos. She has worked as a managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as having worked as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank. 

Prins is known for her books All the Presidents’ Bankers: The Hidden Alliances that Drive American Power and Collusion: How Central Bankers Rigged the World.

- Source, Old Radio

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