Marc Faber`s Investment and Trading Ideas - A Tracking Blog About Dr. Marc Faber , Daily Tracking of Dr. Marc Faber Investment Strategy , Market analysis & Outlook and Media appearances
Dr Doom Marc Faber's Lecture, October 11, 2008 in Ljubljana Slovenija Marc Faber, who predicted this bear market along with other prominent economists and investors , gives a fantastic, detailed lecture on the economy, monetary policy, gold, and inflation. Needless to say, he is still a bear. These are must watch videos. Marc Faber goes in details and explains how the FED created one bubble after the other the dot com bubble them the housing bubble the credit bubble ...with ultra low interest rates which leads to strong monetary growth and in particular in the US to strong debt growth
Marc Faber , also known as Dr Doom editor and publisher of the Gloom, Boom & Doom Report says : Could Hit US In 5-10 Years "since the introduction of the federal reserve in 1913 The US Dollar have lost 95 percent of its purchasing power , we already had a lot of inflation and although it took 100 years to the dollar to lose 95% of its value the next 95% in value will be very quickly " "In every society, when you have large fiscal deficits combined with easy monetary policies … the likelihood that you will have high inflation is very, very high," Faber continued. "And it happens very quickly."he told today to CNBC "It’s a lie what they publish," said Faber. "If you underweigh education costs, and if you underweigh health care costs, then you come to a totally different result." "In such a volatile market, the safest place to invest is in equities or assets." Faber added
"I'm not very bullish about real estate prices in the U.S., but I'd rather be in real estate than in 30-year U.S. bonds.",from now on I am going to nickname dr Marc Faber , Dr Hyperinflation cause he is the only one amongst top range economists who warns the most about Hyperinflation , I hope you agree with me .
Jim Rogers hosts Marc Faber and Daniel Jurgen for dinner and discussion at his home. This video is from 2005. The foresight from these experts is incredibly enriching . Having these two men together, giving their perspectives on very key issues is priceless.In December 2007, Jim Rogers sold his mansion in New York City for about 16 million USD and moved to Singapore. The giant shift of capital to Asia is complete now. The next victim is the dollar.
Medvedev calls for use of national currencies in trade . Brazil Russia India and China BRIC Heads seek Financial Security Less dependency on US Dollar .The share of sovereign currencies in mutual trade within the Shanghai Cooperation Organization (SCO) should be increased to reduce dependence on international reserve currencies, President Medvedev has said.
In aninterview early this month on King World News, Dr Doom PhD economist and author Marc Faber called Ben Bernanke a “mad man”, a “destroyer of wealth”, and a “criminal”.
Dr Marc Faber said in an article he wrote for the dailyreckoning ” I really think that the U.S. and other Western governments are doing their very best to impoverish their countries." I wonder what Dr. Friedman would say 30 years later about our current predicament and the role government is assuming in our lives? The individual’s freedom and ability to choose and take risks to create value are, of course, all important life elements and a cornerstone of our country." The article is entitled : The Frame of Mind of American Economic Policymakers, Posted in Debt and Deficit, Dollar Decline, Featured, The Daily Reckoning, In 2 parts : Read the full article :Part I and Part II
If things deteriorate, the Fed will print more money. Mr. Bernanke talked a few years ago about dropping dollars from helicopters to stimulate the economy. It would be wrong not to take this statement seriously because that is the thinking among policymakers in the U.S. It is a disastrous policy but it can really make stocks go up -- commodities, too. Since the lows in December, oil is up more than 100%. A lot of liquidity has flowed into commodities, which is a sign investors are concerned about the value of paper money.
Marc Faber, editor & publisher of The Gloom, Boom & Doom Report says "Now is the time to go into the South Korean market as it will not hit new lows" . there are great investment opportunities there ..it is a leveraged economy ...Dr doom said he came to Asia in 1973 and South Korea was one of the first countries he visited and he later invested in South Korea in the late 70s and he made a lot of money there ...Dr Doom added " I have to say it is a country along with Singapore Taiwan Honk Kong that has developed enormously over the past 30 , 40 years . if you look at the Korean stock market in November as was the case for Taiwan they were at 30 years low , in other words , stock market was no higher than 20 years ago ...when you have a country that has achieved huge progress over that period of time , in my view that we have made in some Asian market major lows and that it won't break below these lows it is possible that here and there we can break these lows , it is possible but particularly in Korea and Taiwan we won't break these lows "in other words would you give your money to Bernanke and Geithner or would you give to Asian business men ? ...in order to start investing in Korea , if you do not know the market you better start by buying an ETF or give your money to a manager who knows the region .,...the problem here is Inflation
Marc Faber was the first investor to warn about a Zimbabwe like hyper inflation in America , this was early this month on Bloomberg Television "Prices may increase at rates close to Zimbabwe’s gains,"Faber said . by the way according to statistics Zimbabwe’s inflation rate reached 231 million percent last July,
“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.”Faber added ..this story was reported continuously on main stream media these last 2 weeks , even Peter Schiff talked about it on his Wednesday Wall street unspun podcast
Marc Faber recommends commodities in particular sugar cotton copper gold silver and precious metals
the government debt has is growing at very rapid pace during the last 12 months , it increased by 1.9 trillion dollar next 12 months I expect it to increase by about 2 trillion dollars or so , and then it will be very difficult to bring down the deficit in my opinion " said Marc Faber on June 6 2009 during an interview with radio host King World News ..." Economy is unlikely to recover much from the present level we have fallen off the cliff between September of last year and march of this year and we reached in March kind of low point in economic activity and what can happen from this low point is some kind of recovery for a couple of months or even a couple of years but I think the peak prosperity and the peak growth rate we had in 2006 early 2007 will not come back any time soon , The FED will be in a position in which they will be very reluctant to increase interest rates " Faber added "we have since march weakness in dollar and in bond but strength in stocks and in commodities and now I think for the next ten days the bonds can rebound in other words yields will come down somewhat and the dollar can rebound somewhat , but long term I am extremely negative about US treasury Bonds and the US dollar
Crude Oil, Natural GasGold, Copper speculative bubble is about to explode some experts warn Gold’s long-term rally may be reaching an end Gold price has increase 9.3 percent this year, heading for a ninth annual gain, caused by the investors fear of an hyperinflation scenario and the search for a better reserve currency alternative to the U.S. Dollar,and , The American FED has have literally flooded the world market with freshly printed US dollar bills , America Japan and Europe cut interest rates and increased liquidity added to the problem. early this month Marc Faber said he was still buying gold and forecast the U.S. economy would enter hyperinflation similar to Zimbabwe . another legendary investor also from Asia Jim Rogers said practically the same ...more gold commodities mining and farming assets and shares
“My personal view is that asset-price deflation and sluggish economic growth will prevail for the next year and a half,” Walker said yesterday. “Under that scenario, gold’s investment value starts to look far less interesting.” said Marc Faber during an early interview with Bloomberg
following is an interview done by bloomberg with Sumitomo's Takai a commodities trader from Tokyo about the Oil, Gold, Copperspeculative bubble 10 june 2009
Commodities are also about to top out said Marc Faber Marc Faber was Interviewed this morning by the asian TV CNBC-TV18 he says that commodities are also about to top out , so he does not think that they are an attractive entry point anymore "es, I have had positions. Many resource stocks have more than doubled from the lows. Some have even tripled. I don�t think that it is a very attractive entry point to buy these commodities and commodity-related stocks.
Oil is up almost 100% from the lows. The demand for oil is still rising but not as much as before. There is plenty of flight. So, I just don�t think it is a very good time to buy." and speaking about India he said that he would rather sell India than buy it " I think that India has of course good growth potential, but there are still lots of uncertainty, both political and economic. As a trader, I would rather sell India than buy it. But as a long-term investor, I would hold here in India." and speaking about the Asian equities he said : "I have taken some money off the table. In Asia, we have lots of stock markets and lots of stocks that have reasonable valuation. I wouldn�t say very cheap, but reasonable valuation. If you have a long-term time horizon and have cash flow whereby you can buy more shares if they should go down, then I would say hold them. But as a trader, I think as of today I would rather sell than buy." he also mentioned that no paper money and at the top of the list the US dollar is desirable at this point :"In the long-term, the dollar would be a weak currency. But we have a lot of volatility and can go either way. No paper currency is very desirable. That is the problem." speaking about global markets and the high risk at entering equities at this time he said the gravy is out of the market and added :"I would say that the entry point for people who want to buy equities around the world is a high risk entry point because the global economy has bottomed out. There is little potential to grow very strongly. So, there will be disappointments in terms of earnings in the second half of 2009. The gravy is a bit out of markets. India was below 8,000 on the Sensex and has gone up almost 100%. I don�t think it is a very good time to make an entry into the markets except for traders"
The oil prices will continue to rally despite the depression is it speculation peak oil or something else that pushes the oil prices to sky rocket again ? some experts predict 80 to 90 dollars a barrel before the end of the year , peak oil is a reality said Marc Faber because the reserves are in decline , but what it is more scary is not the peak oil but the peak demand...Marc Faber was interrogated today among a panel of other experts by Bloomberg about the oil prices continuing to soar despite the economy is still not out of the tunnel , this is not probably a sign that the economy is picking up again it simply reflects the weakness of the dollar and the fact that countries with huge dollar reserves are trying to dump those dollars in the market purchasing commodities and oil in particular before the dollar crashes under the weight of the trillions that have been printed out of thin air lately by the FED ....so it is not the economy that is picking or the peak oil scenario it is simply the fact that countries are trying to get out of the dollar bill
Back to the inflation/deflation/hyperinflation debate. Marc Faber raised a lot of fuss last week with his bold warning on Bloomberg TV that US hyperinflation will approach Zimbabwe’s levels. His warning - as Credit Writedown’s Edward Harrison noted - raised the question: Is this headline-seeking exaggeration or serious punditry? We suspect a bit of both. Faber struck a chord with his evocation of the “Z word”, setting off frenzied debate. This week, things look different, as unexpectedly strong US output data and other economic figures elsewhere drove equity prices higher as risk appetite improved and the dollar plunged against both the euro and the pound. And lo and behold, Faber’s latest monthly client newsletter takes a far more - er, sanguine - view of things, relatively speaking. In fact, we’re wondering if it’s the same Marc Faber doom-meister of last week. It’s not that the uber-bear has become a mega-bull. Indeed, citing a variety of factors including the overbought condition of stocks, “heavy insider selling” and an increase in the supply of equities due to debt to equity conversions, Faber warns that the buying of equities right now “does not seem to be particularly timely”. It’s rather that Faber is more tempered than he has been in a while. No mention of Zimbabwe at all. Equities could go either way but more likely bottom out. US inflation will be irksome, of course, as a result of the disastrous economic policies of Tim Geithner and Ben Bernanke. But US government bonds have tumbled and the US dollar has been weak. Both are near-term oversold and should shortly rebound, he says. As for equities, a correction should “unfold” in the short term, he says, but market lows reached either towards the end of last year (in most emerging markets) or in March of this year (in most developed markets) also should hold. Any such correction, he adds, could take the shape of a sideward movement in the major averages, “or even not occur at all”. Read entire article:
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
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.
Nouriel Roubini : UK Economy still Fragile
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Nouriel Roubini : I am in London for business meetings....
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Jim Rogers : We Are Bailing Out Incompetence
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"Japan faced problems such as we’re facing now,...
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