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Marc Faber, dubbed Dr. Doom for his negative views on the global economy, said he is 100 percent sure that the United States will go into hyperinflation like that of Zimbabwe.
``The problem with government debt growing so much is that when the time comes and the Federal Reserve should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate,'' Faber said in a recent interview.
Prof. Nouriel Roubini at New York University, one of the few who predicted the ongoing economic turmoil, is talking about a milder but still severe inflation.
During a press conference last week on the sidelines of the Seoul Digital Forum, Roubini said double-digit inflation would wreak havoc on the U.S. economy.
``The U.S. inflation rate is at a very low level now. But even 10-percent inflation would highly damage the U.S. and may cause a decade of very mediocre economic growth,'' he said.
Marc Faber says we will see hyper inflation and he doesn't think that the threat of inflation is going to be bearish for the stock. (Taking Stock) "The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates" investor Marc Faber said "Prices may increase at rates “close to” Zimbabwe’s gains" Faber said “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
“The price of natural gas is so low at the moment, and production’s been cut back so much, that a slight rise in demand is enough to trigger a huge price spike,” Naeimi said by phone today. “While other commodities have rallied, natural gas has been left substantially behind in the energy complex.”
Speculation of a global economic recovery has driven oil prices in New York up 93 percent since Dec. 19, when futures settled at their lowest since February 2004. The price of natural gas has slumped by more than a quarter over the same period.
The number of oil and natural gas rigs operating in the U.S. has more than halved from a two-decade high of 2,031 in September as the recession eroded demand, according to data published last week by Baker Hughes Inc.
“Spot is trading at much lower levels than long-dated natural gas contracts,” said Naeimi. “That means the market is expecting prices to rise. Everyone’s storing natural gas to sell at a higher price in the forward market. You also have a push for clean energy globally, which should benefit natural gas.”
Natural gas is the most “undervalued” commodity, investor Marc Faber said in an interview with Bloomberg Television on May 27.
"Peak oil is a reality. It does not mean that prices will go up in the immediate future. There are other sources of energy like nuclear and Natural Gas. Natural Gas is the most undervalued commodity right now. "Said Marc Faber
Marc Faber known as Dr. Doom also trades currencies and commodity futures like Gold and Oil. Source Bloomberg
The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
Federal Reserve Bank of Philadelphia President Charles Plosser said on May 21 inflation may rise to 2.5 percent in 2011. That exceeds the central bank officials’ long-run preferred range of 1.7 percent to 2 percent and contrasts with the concerns of some officials and economists that the economic slump may provoke a broad decline in prices.
we are going to have a Zimbabwe like hyperinflation , Peter Schiff and Marc Faber the two Dr Doom agree on different degrees that we are going to have a severe hyperinflation and Bond bubble ...
Posted: May 27, 2009, 10:33 AM by Jonathan_Chevreau ETFs, Inflation, Asset Mix, gold
Over the past year, I've occasionally mused mostly in jest that the way the United States has been printing money to combat the financial crisis seems to rival Robert Mugabe's Zimbabwe. All this by way of wondering how it is that the result of running the presses has been rampant hyperinflation in Zimbabwe, yet the U.S. so far seems to have dodged the inflation bullet.
The difference, I point out, is chiefly that the United States can get away with it and Zimbabwe can't. But now comes a warning from Mark Faber suggesting that indeed, U.S. inflation may approach Zimbabwe level. The piece, which ran on Bloomberg today, is based on an interview Faber gave in Hong Kong. He said the U.S. will enter hyperinflation because the federal reserve will be reluctant to raise interest rates.
Certainly, fed chairman Ben Bernanke has never denied he would resort to running the presses: he was famously dubbed "Helicopter Ben" for his quip that he'd rain dollar bills from the skies if necessary. On Twitter, there a couple of fake Ben Bernanke identities that follow inflation and Bernanke.
One former financial advisor and financial writer takes Faber seriously: "Faber’s got a great track record. His prognosticative abilities are second to none. Couple this with his impressive investment expertise and I’ll cast my lot with Mr. Mark." I've interviewed Faber in person myself: he's dubbed Dr. Doom because he publishes the Gloom, Boom & Doom report. It's certainly a sensationalistic prediction given that Zimbabwe's inflation rate reached 231 MILLION per cent in July. The Post also ran the item on its web site today here, including a package of other related Zimbabwe and inflation stories. Read entire article :
May 27 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom and Doom Report, talks with Bloomberg's Bernard Lo about the outlook for the U.S. economy.
Faber, speaking in Hong Kong, also discusses the performance of equity markets, gold and oil prices, and the prospects for a global economic recovery. Bloomberg's Mike Firn also speaks. (Source: Bloomberg) Marc Faber also speaks about nuclear proliferation the Hyperinflation The U.S. economy will enter “hyperinflation” because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.” “There are some concerns of a risk from inflation from all the liquidity injected into the banking system but it’s not an immediate threat right now given all the excess capacity in the US economy,” said David Cohen, head of Asian economic forecasting at Action Economics in Singapore.
“I have a little more confidence that the Fed has an exit strategy for draining all the liquidity at the appropriate time.” Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office. Faber still favors Asian stocks relative to US government bonds and said Japanese equities may outperform many other markets over a five-year period. “Of all the regions in the world, Asia is still the most attractive by far,” he said.
Faber, who said he’s adding to his gold investments, advised buying the precious metal at the start of its eight-year rally, when it traded for less than US$300 an ounce. The metal topped $US1,000 last year and traded today at $956.40 an ounce at 12.50pm New York time.
Hold onto gold as paper money will become worthless in the future, warns Marc Faber, editor & publisher of The Gloom, Boom and Doom Report. CNBC's Martin Soong & Sri Jegarajah ask Faber how he is gaining exposure to the precious metal.
Mongolia's opposition Democratic Party has claimed the victory in the country's presidential race. Marc Faber, editor & publisher of the Gloom, Boom and Doom Report discusses how this will impact the mining industry there, with CNBC's Martin Soong & Sri Jegarajah.
Naomi Fink, Japan strategist at Bank of Tokyo Mitsubishi, and Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, expect the Nikkei to rally to 14,000 and 15,000 in 2010 respectively. They discuss their bullish outlook for Japan, with CNBC's Martin Soong.
Now is the time to go into the South Korean market as it will not hit new lows, says Marc Faber, editor & publisher of The Gloom, Boom & Doom Report. He discusses investment opportunities there with CNBC's Martin Soong
Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, says the overbought market will correct but he is uncertain about the magnitude of the correction. He speaks to Sean Callow of Westpac Bank, CNBC's Martin Soong & Sri Jegarajah.
The Economy is Horrible The Stock Market is Horrible watch the Dollar Marc Faber today on CNBC Asia :
The U.S. dollar weakened broadly last week and whether that selling pattern will continue into this holiday-shortened week will be worth watching, says Sean Callow, senior currency strategist at Westpac Bank. He talks to Marc Faber of The Gloom, Boom & Doom Report, CNBC's Martin Soong & Sri Jegarajah.
The US is like a third world country with a financial oligarchy said Max Keiser , the US is a banana Republic replied Marc Faber the TARP money was almost all lost ...no one is quite sure where the 350 billion dollars have gone ...The regime in the US is bankrupting the country without any accountability said Marc Faber , he added the importance of the US dollar will diminish but the replacement of the US as a world's reserve currency won't happen over night ...Max Keiser called it the Dollar Euthanasia
Marc Faber on Gold and Silver China Asia Commodities and the Future of world's economy The Faith of the US dollar and Mister Ben Bernanke the money Printer
Marc Faber on GSR this Friday talking about the gold rush the hyperinflation how to save your portfolio by investing in precious metals and foreign commodities ...and the US dollar dropping to the floor in a short term
2009.03.16 Marc Faber when asked about investing in farmland said that he has a farmland in New Zealand and there they don't grow hashish obviousely , but in northern Thailand they grow good stuff, that makes you very happy...!!!
Marc Faber forecasts Economic Armageddon , the author of "The Gloom, Boom & Doom Report" foresees a litany of unpleasant events ahead , living up to his reputation for bearishness . His key message is: buy real assets. He thinks it will take years for the global economy to recover, but when it does the effect of governments' printing money will ultimately reignite inflation.
"If you're in any field, you should own a farm because one day you will be grateful that you are able to grow your own agricultural produce."
Recovery will be slow because government meddling in the markets will postpone it. He argues that the final low for markets and for growth will only come when the debt and losses have been cleaned out of the system.
Unless the system is cleaned out of losses, "the way communism collapsed, capitalism will collapse."
"The best way to deal with any economic problem is to let the market work it through."
The Fed is destabilizing, it's creating "enormous volatility".
Marc thinks the yields in government bonds bottomed out in December 2008 – rather than lend money to the US government he suggests buying a portfolio of large, quality blue chip stocks. They will grow and survive – and reposition to take advantage of the rising importance of the emerging economies.
"I think we are living through a major transition in the world… the economic bloc of emerging countries will be more meaningful than before."
"I think that in Asia we have lots of sectors that are quite attractive. The banks, they don't have the toxic assets that we have in the rest of the world."
While not an optimist on the Chinese economy near term – Marc likes Asian currencies, and banks ex-Japan. He also thinks the real estate markets are improving. Both Russia and Turkey get a positive mention.
In Faber's world the US dollar will weaken, and the Yuan and commodity currencies like the Aussie dollar will appreciate.
Isn't there anything in the US he likes?
With just the slightest hint of irony (check gun sales numbers!) – Marc points to gun and ammunition makers. Prison builders also face better prospects he says – after all where will they put all the politicians!
Given the apparently extreme nature of Marc's calls, the question he poses in his May newsletter gives an interesting insight into his complicated mind.
Apparently he was asked by an Executive Director at Goldman Sachs how he remained so optimistic about life...
He writes in response:
"(he)...saw me smoking and thought that I should have already gone to hell (even under the 'Black Swan Theory', Heaven isn't an option), or because I ride fast motorbikes in Thailand (where there are no traffic rules), drink, and go out in the early hours of the morning? Or was it...my philosophy on life...to enjoy life even in the darkest times and most horrible situations..."
Capitalism Could Fail Like Communism said Marc Faber
"A sustainable recovery will occur only when the corporate system will be cleaned of losses and capitalism risks collapsing if this does not happen " said Marc Faber, the author of "The Gloom, Boom & Doom Report said . "The central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries , The years 2006 and 2007 were "the peak of prosperity" and the world economy is not likely to return soon to that level, Faber added , "I think the final low in markets will occur when the system is cleaned out," Dr Doom added "economic problem is to let the market work it through." "The US government for sure will go bust. That I guarantee you. Not tomorrow, but it will go bust," he added. "I think this is the beginning of a long-term bear market. And I think the government will have to keep interest rates artificially low because deficits will be too high," Faber said. "People said fundamentals are bad and markets are going up for no reason. But money printing is a reason," he said "The worse the statistics will be, the more money will be printed. Believe me, globally all the central banks will print money like there's no tomorrow." He concluded
NEW YORK -(Dow Jones)- Hedge fund firms Paulson & Co. and Lone Pine Capital made big bets on gold during the first quarter, becoming the No. 1 and No. 2 shareholders, respectively, in the SPDR Gold Trust (GLD) exchange-traded fund, according to regulatory filings.
Paulson & Co. - run by John Paulson, who had already been beefing up his exposure to gold companies - bought 31.5 million shares of the ETF during the first quarter, according to its mandatory end-of-first-quarter holdings report with the Securities and Exchange Commission. That stake would be worth more than $2.8 billion if Paulson still holds all those shares at present.
Stephen Mandel's Lone Pine bought 26.5 million shares of the ETF, which would be worth $2.4 billion if it still holds those shares. Lone Pine didn't immediately return a message seeking comment.
Many hedge fund managers have been increasing their gold investments lately. More than 28% of the SPDR Gold Trust ETF's outstanding stock was owned by hedge funds as of the end of the first quarter, according to Factset Research Systems.
The increased bets on gold come as the price of the yellow metal have remained high, above $900 an ounce. Funds also see hard assets as insurance against further turmoil in the financial system, including a decline in the value of paper currency.
The Fed printing presses are turning at full speed as the government is monetizing the debt by printing more money said Marc Faber yesterday . "from 2002 to 2007 We had this huge bull market in asset prices, during which everything went up. Commodities, equities, real estate worldwide , even bond prices and art.
Then came the big awakening, credit growth began to slow down and in 2008 everything collapsed except for bonds and the US Dollar, because global liquidity was shrinking and that was dollar supportive. And then we had the beginning of the recession at the end of 2007 and the global economy fell off a cliff between September of 2008 and March of 2009.
I think the rate of deceleration is now diminishing, we still have bad news, the global economy will not recover in a long time but it is not going to deteriorate much more. And we have a huge effort by governments worldwide to create fiscal deficits, in other words to print money. For that reason even if the world economy does not recover you will have a strong recovery in asset prices."
Asian banks don't have the same problems with toxic assets that are affecting Western markets, says Marc Faber, editor & publisher of 'The Gloom, Boom & Doom report, he was interviewed this morning by CNBC. Faber and Bob Parker from Credit Suisse discuss their investment strategies and how can you save your assets and saving in a hyperinflation scenario and a probable dollar collapse ....Marc Faber says that Asia has still many attractive sectors and its banks are sound unlike the West...good investmenst opportunities also in Turkish funds and Russia according to Marc Faber .... Marc Faber says that his investment strategy is based of the fact that we are going to have a hyperinflation in the next 10 years much worse than anybody can expect , so you have to buy assets , cheap assets NOW before the tsunami hits ...the mining sector is a good investment opportunity
After GDP data showed countries within Europe contracted again in the first quarter, Marc Faber, author & publisher of 'The Gloom, Boom & Doom Report, doesn't see the global economy recovering "anytime soon." Bob Parker from Credit Suisse joins the discussion and says that German economy is collapsing dragging with it the whole Euro zone , German economy which is the second exporter in the world after china , has hit a brick wall with 20% contraction in its export
Agricultural commodities offer great opportunity Going against the grain may be costly. Investing in agriculture today will be like investing in oil in 2001 to 2002 when oil prices halved to US$17 per barrel says Marc Faber editor of The Gloom, Boom & Doom Report. Agricultural commodities fell by half from June 2008 highs, but fundamentals remain strong says Faber.
Faber points to a weak build in agricultural stocks (supplies) during the bumper harvest year of 2008. Low stocks, declining productivity, and increased demand persist from a long term perspective says Faber and will drive prices higher. Population growth is rising until 2030 and will have produced an additional billion mouths to feed between 2000 and 2012 alone. Read entire article
really funny : Dr. Marc Faber concluded his monthly bulletin (June 2008) with the following:
' 'The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part.' Marc Faber
Marc Faber a commodities super boom is inevitable , with high risks of Hyperinflation as Mister Bernanke is running the printing press at full speed , What's going on in the stock market is temporary Marc Faber expects demand for stocks, commodities and gold to rise as the increase in global money supply spurs inflation Marc Faber is The author and publisher of the Gloom, Boom and Doom report he is also is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
May 13, 2009 Agricultural commodities offer investment opportunity, says Marc Faber
Going against the grain may be costly. Investing in agriculture today will be like investing in oil in 2001 to 2002 when oil prices halved to US$17 per barrel says Marc Faber editor of The Gloom, Boom & Doom Report. Agricultural commodities fell by half from June 2008 highs, but fundamentals remain strong says Faber.
Faber points to a weak build in agricultural stocks (supplies) during the bumper harvest year of 2008. Low stocks, declining productivity, and increased demand persist from a long term perspective, says Faber, and will drive prices higher. Population growth is rising until 2030 and will have produced an additional billion mouths to feed between 2000 and 2012 alone.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
This is an interview by Marc Faber all in German , following is a translation made by our friend Pascal Maucher :
This is an Interview with Marc Faber and Prof. Max Otte, who is pretty much "godlike" in Germany since he predicted the last crash correctly in his 2005 arrived book "Der Crash kommt" which can likely be translated to "The crash WILL come".
Faber: Central Banks are like a bar tender, who gives his guests alcohol for free. They encourage the people to speculate by giving out easy money.
Otte: The System as it is right now boosts bubbles all the time. It’ll be a huge act of power and courage to change it.
Faber: Central banks never handle the problem correctly, they just paint new color over cracks in the walls.
Interviewee: What should they’ve done?
Faber: Basically, they should have noticed, that bubbles arise because of their expansive monetary policy, which enlarges the debts of a state. When the point has come, where there’s no more debt-growth, economy will collapse.
Otte: If you want to break up this cycle, you definitely come into a long recession. We’ve got much cheap money and the people are buying everything e.g. cars they can’t afford on credit. To change this behavior, something’s got to happen, which usually is a recession.
Faber: The alternative is, to print money so you have to bear the pain over 5 up to 10 years instead of one or two years within a recession. But even a non-economist must understand: You’re not getting rich by money-printing, otherwise Robert Mugabe would be the richest person and Zimbabwe would be the richest nation in the world. You can’t solve problems by money-printing, you’re only able to move them into the future. Right now, you’re still able to solve problems by borrowing much more money than you did the last time, but that’s not going to work forever.
Interviewee: But why is this always done? These people aren’t dumb, are they?
Faber: Well, that’s what I’m asking myself whether central banks are actually intelligent. I assume they are dumb, because they represent a theory which is unsustainable.
Otte: You can’t burst the circuit of more money, low interest rates, crash, even more money, even lower interest rates, even more crashes, because the politicians can’t retrieve the volume of money in circulation. A German law by the year ’68 told the state to spend money in bad times, but to save some other money in good times. Of course they didn’t, so the central banks don’t do that either.
Faber: All those bailout-packages and the ongoing expansive monetary policy, will in my opinion provide us large inflation rates after a short period of deflation.
Interviewee: How high?
Faber: Well, Zimbabwe’s got millions of percents per day, such as it had been in the further republic of Weimar, but I don’t think we will reach that. But 10 to 20 percent should be possible.
Otte: At the moment there is much money getting pumped in the economy, at least 5 trillion all over the world. As soon as the banks no longer hold this money in their pockets, this will generate new demand and let prices go up. I think 5, 10, even 15 percent a year is definitely possible.
Faber: Usually, the rich people benefit from inflation and the governments can hide very much by inflation.
Interviewee: Because then they can pay back their debts..
Faber: Yes, governments and companies can pay back debts with money, which has lost a lot of its value. But inflation is an awkward kind of taxation and it creates social grievance. After some time, high inflation rates lead to political issues, in the end there are usually revolutions and social changes.
Otte: The next bubble is right now in the market of government bonds. These are monetary claims, which lose their value due to high inflation rates.
Faber: The American economy will provide huge deficits in the next years. Last year there was at least one billion; this year will be, I think, at least 2 billion. How shall that ever be paid back? The only way to do so is inflation. When inflation goes up, fixed-interest papers of, let’s say 30 years, are certificates of confiscation, they are worthless.
Otte: Government-bonds are the biggest asset class of the world. Even every community emits some papers. Even small declines in prices will cause damage.
Faber: Central banks are a catastrophe. They are the worst thing that happened in the 20th and 21st century. They will lead the whole system to the collapse. Communism collapsed and the collapse will be the capitalism, because of irresponsible central banks and governments with huge deficits.
Otte: When you’re looking into the future, it’s possible that a state which has such huge debts, such as the US, has to announce bankruptcy. They didn’t have to in their whole history, but once it’s always the first time.
Interviewee: What will happen then?
Otte: I don’t want to imagine that, but foreign creditors would be stuck with their government-bonds. The confidence would be destroyed and had to be reconstructed by a currency reform and stronger market rules. This would be very hard for the world economy.
Faber: Well, I guarantee, that the US will be bankrupt. Not tomorrow, but in ten to fifteen years I see a 100-percent bankruptcy of the United States.
Marc Faber was recently interviewed by Howestreet.com in Vancouver Canada ,Asian stocks have bottomed out , The Copper have bottomed out ... The government is massaging economic statistics , flooding the system with liquidity and creating large deficit The worse the economy is the more money they print , Obama is a disaster , USA is unlucky first Bush and now Obama , Bush plus Obama equals zero says Marc Faber
Part 1 of 2 :
Part 2 of 2 :
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Even Dr Doom Marc Faber, in his latest monthly newsletter to clients, concedes that perhaps, just perhaps, the S&P500 has bottomed out and things may improve from here. Not only that — after boosting gold consistently for months, he warns that precious metal prices may correct further on the downside in coming months.
Commodities and the Kondratiev Wave ``I agree that commodity prices move in long cycles,'' said Faber, who manages $300 million at Marc Faber Ltd. ``The up wave of the Kondratiev cycle is likely to last for at least another 15 to 20 years.''
Faber devoted a 35-page chapter of his 2001 book ``Tomorrow's Gold'' to Kondratiev and other long-wave theorists, writing that once the cycle turned higher, ``it will change the entire rules of investing, because in a rising wave, commodity prices will rise, inflation will accelerate and interest rates will increase.''
The Reuters/Jefferies CRB index of 19 commodities has surged 139 percent since October 2001; copper has jumped five-fold, while oil prices have more than tripled. The U.S. Federal Reserve has raised its benchmark interest rate to 5.25 percent, from a low of 1 percent in 2003.
Faber owns mining stocks, which he declined to name, as well as gold, rare metals and agricultural land. He's underweight bonds, which he said don't perform well in a rising Kondratiev wave.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Copper is generally a leading indicator of economic growth because of its use in new construction (housing and commercial property).
Dr. Faber might be in agreement with Dr. Copper (as copper is sometimes called for its ability to 'diagnose' the economic conditions). Dr. Marc Faber's latest letter landed in the mailbox yesterday. There were some real gems in this month's Gloom, Boom, and Doom Report. One was this quote from Charles Kettering, "Success is getting what you want, happiness is wanting what you get."
Dr. Faber also has quite a bit to say about whether the large rallies in global stock markets since March (and earlier in some cases) constitute a recovery in the economy or just a "bear market rally." He says that, "At least in nominal terms, the global printing presses being run by the world's central banks and fiscal deficits have begun to impact asset prices positively."
This is a concession that the big quantitative easing efforts of the Fed have found their way into bond prices and certain other sectors. Also, by trashing cash the Fed has made stocks look relatively more attractive. Dr. Faber also thinks that, "In the case of resource and mining stocks, as well as Asian equities (and, for that matter, most emerging and other stock markets around the globe), the lows that were reached between October and March of this year are likely to hold-that is, for now."
And what about Australia specifically? He did not single the country out. But he did say that, "The markets that have the highest probability of having made major longer-term lows are resource-related equities, emerging markets, and Japan."
"Conversely," he writes, "the asset market that has the highest probability of having a made a secular high (such as Japan in 1989, or the NASDAQ in March 2000) is the U.S. long-term government bond market. Despite a still-weakening economy and massive quantitative easing, long-term bond yields appear to be on the verge of breaking out on the upside."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil. Source News
Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager.
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``The problem with government debt growing so much is that when the time comes and the Federal Reserve should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate,'' Faber said in a recent interview.
