Wednesday, October 28, 2020
Saturday, October 24, 2020
Marc Faber: Pandemic predictions for gold, silver, stocks, real estate, bonds and bitcoin
Marc speaks with The Capital Network's Lelde Smits to discuss his outlook for investments including gold, silver, stocks, real estate, bonds, bitcoin.
Over the years Marc had told investors to hold diversified portfolios with equal 25% shares in stocks, real estate, cash and bonds and precious metals and Marc answers how his views have changed since the Federal Reserve shied away of its long-time commitment to inflation targeting in August 2020 and amid the COVID-19 global pandemic.
- Source, TCNTV
Monday, October 19, 2020
Marc Faber: India Will be a Top 3 Global Economy
He was our very first guest on the podcast and did a 2-part episode. At that time he talked to us about the rise of India as a major economy as well as his personal portfolio.
This time he shared his views on a range of topics: stocks, bonds, cash, gold, silver, real estate, the global economy, covid-19, and a lot more. Dr Faber is bullish on India and owns Indian stocks via an ETF.
He believes India is a top destination for global investors and that will not change. In fact he says the Indian economy will be the among the 3 largest In the world within twenty years!
Now that’s a strongly bullish statement on India coming from one of the best investors in the world.
He also talked about his personal investments and why he is investing his money the way he is right now.
We enjoyed talking to Dr Faber and also learnt a lot from him especially about the big social and economic forces, both on the left and the right, in the western world.
- Source, Equity Master
Friday, September 25, 2020
Marc Faber: Banned by Broadcasters, Read by Decision Makers
Nobody less than Jamie Dimon, CEO of the largest US bank JP Morgan, regularly reads the "Gloom Boom & Doom Report" by the stock market guru Marc Faber, who fell out of favor with the major networks some time ago. With this reading, Dimon is not alone among important decision-makers.
For decades, Marc Faber was a welcome key note speaker at conferences and a popular interview partner for journalists in general and TV anchor (wo) men of the major US networks in particular. But almost three years ago it was all over.
that Faber's openly expressed opinions and assessments, apart from the permanently indignant public, still resonate with important decision-makers today became evident. At the beginning of August, none other than JPMorgan boss Jamie Dimon came out as a loyal reader of Faber's paid stock letter "Gloom Boom & Doom Report". And Faber repeatedly made it clear that other prominent actors read his letter regularly.
Plain words
Whether or not Faber's view that a black America would have been less or less economically successful is right or wrong is at best an academic discussion. We will never know if it is right or wrong. By contrast, his view of the central bank policy of our day is much more interesting. He describes the economists in the central banks as idiots, and the printing of money as a mistake. If one could actually generate wealth with the help of the printing press, one would have to ask the question why someone is still producing or working. Faber assumes that the unrestrained printing of money will cause us serious problems sooner or later. And if you look at the development of the gold price, you can assume that he is no longer alone with this assessment.
No more discourse
The fact that the liberal media brainwashed the public with regard to political correctness, Keynesian and political interventions is another Faber statement that one should think about in times of ever narrowing corridor of opinion. Because many discussions that used to be taken for granted and, in the Hegelian sense of thesis, antithesis and synthesis, ultimately led to progress through the discourse, no longer take place thanks to the increasing number of manslaughter arguments.
More of that, please!
We should therefore be glad that there are old, wise - yes, and also white - men like Marc Faber who are not ailing from the zeitgeist, no longer have to be considerate, stand by their opinion and do not adjust their flags to the wind. Because the truth is reasonable for people, as Ingeborg Bachmann said.
For decades, Marc Faber was a welcome key note speaker at conferences and a popular interview partner for journalists in general and TV anchor (wo) men of the major US networks in particular. But almost three years ago it was all over.
With the statement that he was glad that whites and not blacks had immigrated to the USA because the latter had not brought the USA forward, the economic situation in South Africa and Zimbabwe after the change of power from white served as evidence for his assessment too black.
This made him a "persona non grata" in a flash for the media, the NZZ headlined "Dr. Doom argues stupid", and several board members subsequently decided not to work.
Well-known investors and decision-makers up to CEOs among the readers
Well-known investors and decision-makers up to CEOs among the readers
that Faber's openly expressed opinions and assessments, apart from the permanently indignant public, still resonate with important decision-makers today became evident. At the beginning of August, none other than JPMorgan boss Jamie Dimon came out as a loyal reader of Faber's paid stock letter "Gloom Boom & Doom Report". And Faber repeatedly made it clear that other prominent actors read his letter regularly.
Plain words
Whether or not Faber's view that a black America would have been less or less economically successful is right or wrong is at best an academic discussion. We will never know if it is right or wrong. By contrast, his view of the central bank policy of our day is much more interesting. He describes the economists in the central banks as idiots, and the printing of money as a mistake. If one could actually generate wealth with the help of the printing press, one would have to ask the question why someone is still producing or working. Faber assumes that the unrestrained printing of money will cause us serious problems sooner or later. And if you look at the development of the gold price, you can assume that he is no longer alone with this assessment.
No more discourse
The fact that the liberal media brainwashed the public with regard to political correctness, Keynesian and political interventions is another Faber statement that one should think about in times of ever narrowing corridor of opinion. Because many discussions that used to be taken for granted and, in the Hegelian sense of thesis, antithesis and synthesis, ultimately led to progress through the discourse, no longer take place thanks to the increasing number of manslaughter arguments.
More of that, please!
We should therefore be glad that there are old, wise - yes, and also white - men like Marc Faber who are not ailing from the zeitgeist, no longer have to be considerate, stand by their opinion and do not adjust their flags to the wind. Because the truth is reasonable for people, as Ingeborg Bachmann said.
- Source, Institutional Money
Monday, September 21, 2020
Three Bank Stocks to Buy Whose Day Is Coming
Marc Faber is a legendary investment advisor and fund manager. He publishes a monthly market commentary, which carries his view on different investments and asset classes, including bank stocks.
In his September issue, Faber opines that “at some point, the Awesome 8 will turn down and that investors will move funds into value type of stocks including resource stocks and banks.”
The “Awesome 8” here refers to Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL,NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
I am bullish on the Awesome 8 for the long term. However, I do believe that bank stocks can outperform these names in the coming quarters as investors look for value.
Reuters points out that banks sector’s forward price-book ratio is significantly below historical average. Valuations have not changed in the last few months with most bank stocks remaining sideways.
The Federal Open Market Committee expects U.S. GDP growth to decline by 6.55% for 2020. However, GDP growth is likely to bounce back to 5.25% in the coming year. The banking sector is the backbone of the economy and if GDP growth accelerates, bank stocks are likely to outperform.
With these factors in consideration, let’s take a look at the following bank stocks. These three bank stocks are attractive for the coming quarters as the economy gradually crawls back to normalcy...
In his September issue, Faber opines that “at some point, the Awesome 8 will turn down and that investors will move funds into value type of stocks including resource stocks and banks.”
The “Awesome 8” here refers to Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL,NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
I am bullish on the Awesome 8 for the long term. However, I do believe that bank stocks can outperform these names in the coming quarters as investors look for value.
Reuters points out that banks sector’s forward price-book ratio is significantly below historical average. Valuations have not changed in the last few months with most bank stocks remaining sideways.
The Federal Open Market Committee expects U.S. GDP growth to decline by 6.55% for 2020. However, GDP growth is likely to bounce back to 5.25% in the coming year. The banking sector is the backbone of the economy and if GDP growth accelerates, bank stocks are likely to outperform.
With these factors in consideration, let’s take a look at the following bank stocks. These three bank stocks are attractive for the coming quarters as the economy gradually crawls back to normalcy...
- Source, Nasdaq.com, read more here
Friday, September 11, 2020
Gloom Boom and Doom Report: Precious Metals Are Overbought, But the Potential For Gains is High
By now, with the strong performance of Treasury bonds, equities, and especially precious metals, all my readers who even had just a small allocation in gold and silver, have earned far more than the subscription price of this commentary.
Although we gold holders should all be happy about its performance, other assets such as US equities have also done fabulously well and have actually outperformed gold over the long term – this especially if we were to include dividends.
I just read an interview by Kate Welling with Joel Greenblatt, a well-known deep-value investor According to Greenblatt, stocks like Amazon, Google, and Microsoft, all stocks which he holds in his portfolio, were inexpensive.
However, Greenblatt adds that, “it just seems quite unlikely that we have hundreds of companies that will match the performance of the best of all time. But people are giving them advance credit, in terms of their stock valuations, for being the next Amazon, the next Google. So, we are short hundreds of those companies.”
Maybe we are in a period during which a value stock is a company such as Microsoft, selling for 10-times sales and 31-times estimated earnings but not according to my value criteria. Noteworthy is that whereas the tech sector now accounts for 37% of the S&P market capitalization, aggregate sales for the sector make up for only 10% of the index. In other words, the ownership of FAANG and related stocks seems to be an extremely "crowded" trade.
Actually, I believe asset markets reflect closely what is occurring in the world. Take precious metals markets. They are moving up not necessarily because they expect high consumer price inflation but because investors realize that the purchasing power of paper money is being eroded through the excess creation of money and negative interest rates.
Also, a safe assumption is that central bankers around the world will continue to print money. In other words, the central banks' balance sheets will further expand. How does an investor protect himself from this monetary inflation? He seeks refuge in assets, which cannot be multiplied at the same rate that money can be printed, such as precious metals or crypto-currencies. The investor may also choose to move money into assets whose supply cannot be increased at all such as Rembrandt, Picasso, van Gogh, etc. paintings or old stamps.
I concede that precious metals are near-term overbought, and that the bullish consensus is high. But, at the same time, there is huge pool of potential investors which do not own any precious metals at all and could come into the market – most likely at far higher prices.
My advice is to hold a basic allocation to precious metals, and if desired take occasionally trading positions. Should confidence in the system erode (I am surprised there is still any confidence left) it would take little money in the context of the entire size of global financial assets and of the liquidity, which central bankers create, to boost precious metal prices much higher.
Although we gold holders should all be happy about its performance, other assets such as US equities have also done fabulously well and have actually outperformed gold over the long term – this especially if we were to include dividends.
I just read an interview by Kate Welling with Joel Greenblatt, a well-known deep-value investor According to Greenblatt, stocks like Amazon, Google, and Microsoft, all stocks which he holds in his portfolio, were inexpensive.
However, Greenblatt adds that, “it just seems quite unlikely that we have hundreds of companies that will match the performance of the best of all time. But people are giving them advance credit, in terms of their stock valuations, for being the next Amazon, the next Google. So, we are short hundreds of those companies.”
Maybe we are in a period during which a value stock is a company such as Microsoft, selling for 10-times sales and 31-times estimated earnings but not according to my value criteria. Noteworthy is that whereas the tech sector now accounts for 37% of the S&P market capitalization, aggregate sales for the sector make up for only 10% of the index. In other words, the ownership of FAANG and related stocks seems to be an extremely "crowded" trade.
Actually, I believe asset markets reflect closely what is occurring in the world. Take precious metals markets. They are moving up not necessarily because they expect high consumer price inflation but because investors realize that the purchasing power of paper money is being eroded through the excess creation of money and negative interest rates.
Also, a safe assumption is that central bankers around the world will continue to print money. In other words, the central banks' balance sheets will further expand. How does an investor protect himself from this monetary inflation? He seeks refuge in assets, which cannot be multiplied at the same rate that money can be printed, such as precious metals or crypto-currencies. The investor may also choose to move money into assets whose supply cannot be increased at all such as Rembrandt, Picasso, van Gogh, etc. paintings or old stamps.
I concede that precious metals are near-term overbought, and that the bullish consensus is high. But, at the same time, there is huge pool of potential investors which do not own any precious metals at all and could come into the market – most likely at far higher prices.
My advice is to hold a basic allocation to precious metals, and if desired take occasionally trading positions. Should confidence in the system erode (I am surprised there is still any confidence left) it would take little money in the context of the entire size of global financial assets and of the liquidity, which central bankers create, to boost precious metal prices much higher.
- Source, Marc Faber via the Gloom Boom and Doom Report
Monday, September 7, 2020
Wednesday, September 2, 2020
Monday, August 31, 2020
Marc Faber: Guru's Mantra to Get Rich, and Stay Rich
Marc Faber has a simple, time-tested advice to get to those millions you've been dreaming of. Get a skill, and get better at it. This pandemic has upended the work culture as we know it, and finding your best talent can help you get ahead.
In a free-wheeling chat with ET NOW's Managing Editor Nikunj Dalmia, Marc Faber spells out a ready reckoner to get rich. Work, work and work, advises Faber. The secret sauce to becoming a billionaire is a heady mix of knowledge, focus, and acquisition of a new skillset. In Faber's words, posting pictures on Facebook thrice a day may score you 'Likes', but would add zilch to your bank balance.
You must ace that job, whatever you do, whether you are an economist or a computer technician. He adds, "If you want to be rich, money printing by the US Fed or the RBI isn't going to help you, that I guarantee you." The guru of investing believes hard work, focused discipline, and consistently improving knowledge and skills is the most certain path to become rich.
And if you already have millions stashed away in your account, should you be sitting tight? Well, Faber has a simple advice. Go buy land, or farmland in the countryside! With work from home becoming the new normal, more and more people are tilting towards finding an abode in the outskirts. The shift away from the city life is a trend worth betting on. Real estate in secondary locations could offer more potential than the ones in the heart of the city. He cites India as an example. Faber says, "the centre of Mumbai is not going to be particularly attractive but on the outskirts, maybe 1-2 hours from Mumbai, satellite towns offer property at a fraction of the price in Mumbai." In fact, he says, some people will also buy farms, and that can open interesting possibilities for the future.
In a free-wheeling chat with ET NOW's Managing Editor Nikunj Dalmia, Marc Faber spells out a ready reckoner to get rich. Work, work and work, advises Faber. The secret sauce to becoming a billionaire is a heady mix of knowledge, focus, and acquisition of a new skillset. In Faber's words, posting pictures on Facebook thrice a day may score you 'Likes', but would add zilch to your bank balance.
You must ace that job, whatever you do, whether you are an economist or a computer technician. He adds, "If you want to be rich, money printing by the US Fed or the RBI isn't going to help you, that I guarantee you." The guru of investing believes hard work, focused discipline, and consistently improving knowledge and skills is the most certain path to become rich.
And if you already have millions stashed away in your account, should you be sitting tight? Well, Faber has a simple advice. Go buy land, or farmland in the countryside! With work from home becoming the new normal, more and more people are tilting towards finding an abode in the outskirts. The shift away from the city life is a trend worth betting on. Real estate in secondary locations could offer more potential than the ones in the heart of the city. He cites India as an example. Faber says, "the centre of Mumbai is not going to be particularly attractive but on the outskirts, maybe 1-2 hours from Mumbai, satellite towns offer property at a fraction of the price in Mumbai." In fact, he says, some people will also buy farms, and that can open interesting possibilities for the future.
- Source, Times Now
Thursday, August 27, 2020
Marc Faber: The Value of Money Will Diminish Moving Forward
We have had a recovery but if you look at the recovery in equity prices in the US, it has been mostly concentrated in FAANG and FAANG related stocks. The New York stock exchange FAANG Index is at all-time high but there are just 10 stocks in that index and one of them is Tesla. That is not representative of the entire stock market.
Some stocks have made new highs although the semiconductor stocks and some other stocks have languished. Going forward, investors should look at stocks that have languished or are very depressed. Since you are talking so positively about stocks, let me just point out to you that no stock market in the world has outperformed gold and silver. This year gold is up 28% and silver 53%. So instead of talking and telling me that stocks are doing so well, you should be pointing out that gold and silver have done much better than any equities.
Let me point out some differences and similarities. In 1999 and 2002 and 2003, commodities had been in a bear market essentially since the 70s and in the case of precious metals, since 1980.
In other words a 20-year bear market. Now we were in the bull market until 2008 for oil and for gold and silver until 2011 and for agricultural commodities a little bit differently. But basically after 2011, commodities did not perform well. So we have been in a bear market until in the case of precious metals since December 2015.
After 2015 gold and silver have done well but they just made the new highs in the case of gold and in the case of silver, it has not made a new high yet. So I can say precious metals are relatively inexpensive.
What is really very depressed are agricultural commodities and industrial commodities. Lumber for example is some kind of an industrial commodity and that has gone ballistic recently. It has got up a lot but to answer your general question, if the Federal Reserve and other central banks are printing money, the value of money will diminish and that is not difficult to see.
Some stocks have made new highs although the semiconductor stocks and some other stocks have languished. Going forward, investors should look at stocks that have languished or are very depressed. Since you are talking so positively about stocks, let me just point out to you that no stock market in the world has outperformed gold and silver. This year gold is up 28% and silver 53%. So instead of talking and telling me that stocks are doing so well, you should be pointing out that gold and silver have done much better than any equities.
Let me point out some differences and similarities. In 1999 and 2002 and 2003, commodities had been in a bear market essentially since the 70s and in the case of precious metals, since 1980.
In other words a 20-year bear market. Now we were in the bull market until 2008 for oil and for gold and silver until 2011 and for agricultural commodities a little bit differently. But basically after 2011, commodities did not perform well. So we have been in a bear market until in the case of precious metals since December 2015.
After 2015 gold and silver have done well but they just made the new highs in the case of gold and in the case of silver, it has not made a new high yet. So I can say precious metals are relatively inexpensive.
What is really very depressed are agricultural commodities and industrial commodities. Lumber for example is some kind of an industrial commodity and that has gone ballistic recently. It has got up a lot but to answer your general question, if the Federal Reserve and other central banks are printing money, the value of money will diminish and that is not difficult to see.
- Source, Marc Faber via Economic Times
Monday, August 24, 2020
Marc Faber: Emerging markets including India will begin to outperform US
What a fabulous recovery we have seen not just for the developed markets but for emerging markets and India as well from the March lows! It seems like the doom is over, but is this the gloom or is it the boom which has played out?
Economically it is not over yet. As you know the economy fell off a cliff and whereas it has kind of recovered somewhat from the low point in April, they are far from where they were say a year ago. So to say that everything is hunky-dory is a wrong statement. The markets have recovered and if you had an index of mom-and-pop stores or small businesses, it would look disastrous, a complete collapse.
There are many small businesses in the western world that will not re-open, there are many businesses in emerging markets they will never re-open, maybe a new crop of businesses will come up. But if you say that everything is fine, it is sticking your head in the sand.
The reality asset markets have done well and the Federal Reserve has said repeatedly that they will address one of their concerns of wealth inequality. Well, so far that they have been very successful at making the rich people richer and the poor people essentially poorer...
Economically it is not over yet. As you know the economy fell off a cliff and whereas it has kind of recovered somewhat from the low point in April, they are far from where they were say a year ago. So to say that everything is hunky-dory is a wrong statement. The markets have recovered and if you had an index of mom-and-pop stores or small businesses, it would look disastrous, a complete collapse.
There are many small businesses in the western world that will not re-open, there are many businesses in emerging markets they will never re-open, maybe a new crop of businesses will come up. But if you say that everything is fine, it is sticking your head in the sand.
The reality asset markets have done well and the Federal Reserve has said repeatedly that they will address one of their concerns of wealth inequality. Well, so far that they have been very successful at making the rich people richer and the poor people essentially poorer...
- Source, Economic Times
Wednesday, August 5, 2020
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