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
Commodity Surge With gold prices breaking several all-time records this week, you would think most would think it's getting expensive to acquire the yellow metal, but not Marc Faber, who says gold bullion prices aren't expensive in his view.
At a CLSA Investors’ Forum 2010 in Hong Kong, Faber said, “Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a read article >>>
Nouriel Roubini and Dr Marc Faber are both widely known in investment circles as ‘Dr Doom’ for their generally pessimistic views on markets. As both have called markets correctly ahead of some of the biggest bear markets of recent years, it is striking when the pair disagree. In this case, they are at odds on the future direction of the Japanese currency and its implications for Japanese equities.
Bullish on Japanese equities
Faber, author of the influential Gloom, Boom and Doom report, is relatively bullish on prospects for the Japanese stock market over the next 12 months because he is expecting the yen to depreciate in price. read article >>>>
While some point to the economically stable decades following the Great Depression as a triumph of the free market, Nobel Prize-winning economist Joseph Stiglitz begs to differ. In reality, he says, these years were made possible by careful government intervention and regulation.
Visiting Nobel Laureate and global economist Professor Joseph Stiglitz believes Australia's good fortune in being sheltered from the worst of the GFC means we may not fully comprehend its impact internationally.
On his tour of Australia, he comments on the state of the Australian economy, particularly in context of the Global Financial Crisis, the role of natural resources within this economy, and Australia's response to global warming.
Professor Stiglitz travelled all over Australia for three weeks as the inaugural speaker for the Eminent Speaker Series, hosted by the Economic Society of Australia. The series has been initiated to provide an opportunity for industry professionals, government representatives and academics to hear from the world's leading economists in an open forum. - Australian Broadcasting Corporation
Joseph Stiglitz was chief economist at the World Bank until January 2000. Before that, he was the chairman of President Clinton's Council of Economic Advisers. He was awarded the Nobel Prize in economics in 2001. He is currently a finance and economics professor at Columbia University. He is the author of Globalization and Its Discontents and The Roaring Nineties.
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On the sidelines of the Invest10 investment forum in Geneva, the editor of the Gloom, Boom & Doom Report told Reuters in an interview on Wednesday that ultra-low interest rates were making it difficult to value assets in developed economies, and that countries like Thailand, Singapore and Vietnam would do better short term.
“US and European interest rates are negative in real terms, the rate of inflation is significantly higher than what governments are saying,” Mr Faber said. “You can see it when you pay for your insurance premiums, your groceries, your child’s pre-kindergarten schooling in New York there has been a loss of pricing power for most people.” Read Full Story >>>>
Marc Faber: "I think that industrial commodities are not the most desirable. I think the commodities complex, which is most attractive at present time, are agricultural commodity and they should move up further in due course.
The industrial commodities are basically suffering from still relatively weak global demand. If something happens because Chinese economy, not just a minor slowdown, but a more meaningful slowdown then obviously would have a big impact on the demand for industrial commodity. "
Marc Faber :"I think that there are people who have extreme views either extremely bullish or extremely bearish. I think we maybe in a kind of a trading range whereby first we go down somewhat into October-November and then rally again towards the end of the year.
I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks." "We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. "
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) – Gold’s rise to a fresh record Friday won endorsement from financial advisor Marc Faber, who said the rally in bullion prices didn’t appear excessive in view of the inflationary backdrop and ongoing bias of the world’s monetary authorities towards weak currencies.
Faber, known as Dr. Doom for his bearish call on U.S. stocks shortly before the crash of October 1987, said he would continue to be a buyer of bullion at current levels.
“Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a bubble,” Faber told a CLSA Investors’ Forum 2010 in Hong Kong. Read Article at www.marketwatch.com >>>>
Marc Faber :"U.S. and European interest rates are negative in real terms, the rate of inflation is significantly higher than what governments are saying," Marc Faber told Reuters yesterday 15 September 2010.
"You can see it when you pay for your insurance premiums, your groceries, your child's pre-kindergarten schooling in New York there has been a loss of pricing power for most people." Via www.Reuters.com
Sept. 15 (Bloomberg) -- Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., talks about Japan's intervention in the foreign-exchange market to weaken the yen. El-Erian, speaking with Tom Keene and Ken Prewitt on Bloomberg Radio's "Bloomberg Surveillance," also discusses the ineffectiveness of economic policies. (This is an excerpt. Source: Bloomberg)
Celebrated analyst Dr Marc Faber told ArabianMoney he thought that the UAE stock market is ‘probably in a bottoming phase’ rather than at the start of a major rally as some market participants clearly hope.
The 2.4 per cent rise in the Dubai Financial Market on the first day of trading after Ramadan was fairly subdued considering that the Dubai $23.5 billion debt deal had been finally announced at the weekend. Trading volumes doubled, but then they have been very low. Abu Dhabi stocks also gained but by even less than Dubai. read article
Marc Faber :Geopolitical Problems Will Rise In The Next 10 Years "I believe geopolitical problems will rise in the next 10 years and could have a devastating impact on financial assets.""Gold and silver, in an environment of money printing and geopolitical problems, will one day be worth substantially more,"
The Swiss Stock market expert, Dr. Doom, crash prophet - or simply Marc Faber. Whenever the mood seems to tilt his analysis of the markets are in demand. The Language Resource interview he talks about the flood of money by central banks and crash trends on the stock exchanges. Sorry nu subtitles are available for now....
Marc FaberSays Prepare for October Stock Market Plunge to be followed by a rally into the end of the year. More Quantitative Easing may not please the markets. Marc Faber :"I think that there are people who have extreme views either extremely bullish or extremely bearish. I think we maybe in a kind of a trading range whereby first we go down somewhat into October-November and then rally again towards the end of the year.
I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks." "We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. "
Marc Faber : "I think that there are people who have extreme views either extremely bullish or extremely bearish. I think we maybe in a kind of a trading range whereby first we go down somewhat into October-November and then rally again towards the end of the year.
I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks."
"We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. "
"I think what is frequently overlooked are geopolitical tension and the relationship between India and China have deteriorated lately. I think we may have geopolitical events that could play a role in valuation of asset. That’s why I tell people they should have some money in physical gold."...etc...
Sept. 10 (Bloomberg) -- Pacific Investment Management Co.’s Mohamed A. El-Erian said business is booming at the world’s largest manager of bond funds and that isn’t a good sign for the U.S. economy.
Net inflows into bond funds reached $120 billion year to date at the end of August as investors became more risk averse, Pimco’s chief executive and co-chief investment officer said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. Newport Beach, California-based Pimco oversees more than $1.1 trillion of assets and runs the $248 billion Total Return Fund, the biggest bond fund by assets. read article on Businessweek >>>
Marc Faber :" I think that in general if someone has no money in India, I would over a time stimulate Indian shares. As I mentioned to you I think the market technically doesn’t look good. We may go down first before we rally further, if at all, maybe we don’t even rally as I said maybe we are in a trading range in India between 13,000 and 19,000. But if I had too much exposure in Indian shares I would definitely reduce the position."
Marc Faber :"We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. " Watch The Interview with Money Control >>>>
Marc Faber : "I think that there are people who have extreme views either extremely bullish or extremely bearish. I think we maybe in a kind of a trading range whereby first we go down somewhat into October-November and then rally again towards the end of the year.
I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks." "We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. " "I think what is frequently overlooked are geopolitical tension and the relationship between India and China have deteriorated lately. I think we may have geopolitical events that could play a role in valuation of asset. That’s why I tell people they should have some money in physical gold."...etc...
Colvin & Co. LLP today announced the appointment of Dr. Marc Faber, Dr. William Wilson, and Mr. Tom Olson to its Advisory Board.
"Dr. Faber, Dr. Wilson, and Mr. Olson are some of most respected experts in their fields. We are very excited to have them join Colvin & Co.'s Advisory Board," said Greyson Colvin, Managing Partner. "Their expertise and advice will be very valuable to Colvin & Co.'s investment strategy and its new farmland fund, Colvin Farmland LP." via www.marketwire.com
"It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US," Marc Faber told Bloomberg in a phone interview from Thailand. "Money will flow into equities at least over the next couple of weeks, and into commodities," Faber said.
"Over the last two years we eased massively in the US and where did the growth take place? In Asia". "So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" he asked.
"No! they will build factories in Asia and hire people in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber explained.
"It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US," Faber told Bloomberg in a phone interview from Thailand. "Money will flow into equities at least over the next couple of weeks, and into commodities," Faber added
"Over the last two years we eased massively in the US and where did the growth take place? In Asia". "So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" "No! they will build factories in Asia and hire people in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber added
"In my view over the next 10 years, Treasuries will be a disaster for investors,"
he said.
Sept. 3 (Bloomberg) -- Harvard University historian Niall Ferguson talks about the outlook for the U.S. and global economy. The August payrolls report may show the U.S. economy lost 105,000 jobs, the third straight monthly decline, according to the median forecast of 81 economists surveyed by Bloomberg News. Ferguson speaks in Cernobbio, Italy, with Francine Lacqua on Bloomberg Television's "Global Connection."
In a phone interview from Thailand Marc Faber told Bloomberg that : "It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US,"
"Money will flow into equities at least over the next couple of weeks, and into commodities," Faber added.
"Over the last two years we eased massively in the US and where did the growth take place? In Asia".
"So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" he asked.
"No! they will build factories in Asia and hire people in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber explained.
Quotation from Marc Faber's Monthly Market Report: "A break out above $20 could lead to a powerful upside move " In the very short term silver could have more upside (if it breaks $20) but Marc Faber likes gold better because it is more of a monetary metal. Investors need to have a large amount of gold in their portfolio for proper diversification.
"It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US," Faber told Bloomberg in a phone interview from Thailand.
"Money will flow into equities at least over the next couple of weeks, and into commodities," Faber said.
"Over the last two years we eased massively in the US and where did the growth take place? In Asia".
"So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" "No! they will build factories in Asia and hire people in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber added
"In my view over the next 10 years, Treasuries will be a disaster for investors,"
Marc Faber believes the greatest risk to global economy is the impending inflation that will occur due to easy Central Bank policy and money printing . Faber says Friday’s “key reversal day” was a sign that markets will perceive further government intervention as inflationary and will result in higher prices for commodities, equities and gold:
Marc Faber : as the economy does not recover much the central banks around the world will print money and nobody really wants to have a strong currency , what is more important to recognize is the impact on asset market ....I think last friday was an interesting day , first of all we had over the last ten days a lot of negative news and front page articles about that the market strategist expect the S&P to drop and so forth and that government bonds will continue to rally and on Friday we had a key reversal day where stocks close up strongly on the day after having been down in the morning and when bonds tumble , first to understand the market in my opinion will perceive easy move by central banks around the world as being inflationary ...."
This transcript was done manually and is far from being accurate.... Marc Faber talks via telephone about the federal reserve money printing
Marc Faber : as the economy does not recover much the central banks around the world will print money and nobody really wants to have a strong currency , what is more important to recognize is the impact on asset market ....I think last friday was an interesting day , first of all we had over the last ten days a lot of negative news and front page articles about that the market strategist expect the S&P to drop and so forth and that government bonds will continue to rally and on Friday we had a key reversal day where stocks close up strongly on the day after having been down in the morning and when bonds tumble , first to understand the market in my opinion will perceive easy move by central banks around the world as being inflationary ...." This transcript was done manually and is far from being accurate.... Marc Faber talks via telephone about the federal reserve money printing
In sum, the current policy approaches here and abroad are unlikely to deliver a durable and robust U.S. recovery and, critically, create sufficient growth in jobs. Yet the main debate in Washington is whether to do more of the same — namely, another fiscal stimulus and another round of quantitative easing by the Federal Reserve. This clearly conflicts with evidence that a broader and more holistic response is needed. read the full article >>>
Marc Faber : “I think there isn’t much upside potential in Treasuries unless it’s for the short term. Even the short term is uncertain. But if I look 10 years ahead, where do I want to have my money? Certainly not in U.S. Treasuries.” "In 1999-2000, foreigners also wanted to buy the Nasdaq, and what happened after that was a massive collapse," Faber said. "So I don't see foreign buying as a very intelligent leading indicator." Marc Faber explained that he is 'not interested in buying an asset class that has been in a bull market for 19 years,' and that he would rather place his investments in farmland, agricultural commodities and of course gold.
Marc Faber : Even if the global equity markets including India continue to rebound over the next couple of weeks, I do not think we will be making new highs. It's quite possible that for the current year we have already seen the high made recently. I would be cautious about buying equity including in India. The upside is limited from these levels; the Sensex may make marginal new highs at around 18,000-19,000, but the risk has increased and the days of big moves are over. I think markets will correct. via www.business-standard.com
Aug. 26 (Bloomberg) -- Mark Zandi, chief economist at Moody's Analytics Inc., talks with Bloomberg's Margaret Brennan about the outlook for the U.S. economy and possibility for another recession. (This report is an excerpt of the full interview. Source: Bloomberg)
While some are worried about the risks of inflation, others fear deflation could be a threat. David Wyss, global chief economist at Standard & Poor's weighs in, with guest host Michael Yoshikami of YCMNET Advisors and CNBC's Martin Soong.
Marc Faber : The most common point about every crisis is that in that period there was excessive debt growth, excessive credit growth, excessive leverage and excessive speculations that came about because of the excess credit growth. But the Federal Reserve does not seem to understand that. That is the most common.
The other point I would like to mention is that during such crisis, governments should actually do nothing and let the market adjust from the downside. This is because as prices decline and drop, the affordability improves again and at some point buyers come in and as a result the system is cleaned.
However, if governments intervene with fiscal and monetary measures as the US has done, it sows the seeds for the next crisis. The crises in the post 1980s period such as Tequila, 1994, LTCM, 1998, Nasdaq bubble 2000 are all indicators of this trend. The measures led to formation of a bubble which then caused bubbles in other sectors of the economy. Therefore in my view the interventions which always happen nowadays in the Western democracies are actually not desirable.
source smartinvestor.in
Marc Faber, the publisher of Gloom, Boom & Doom Report, and Peter Schiff, investment strategist at Euro Pacific Capital, discuss US Treasuries with CNBC. “The bond market is the mother of all bubbles right now,” Peter Schiff says. “This decade is going to be the worst decade for bonds in US history.” If you want own Treasuries, Schiff suggests owning them in Switzerland or another country where the government isn’t as reckless as in the US. Marc Faber also advised to avoid US Treasuries he told CNBC recently : "If you look at the different investment alternatives Equities, bonds, real estate, commodities and precious metals ... I think that equities should be represented in a portfolio, in particular, if you are very bearish about the world long-term, you probably be better off in Equities than in bonds. Somebody said before that markets are now highly correlated and that’s true to some extent but not true from other perspective. Say 2008 everything went down and the US dollar rallied and the US government bonds rallied and more recently it’s been when you have a strong day in the stock market bonds go down and so forth. So not everything is correlated and the same applies to agricultural commodities." "I think eventually inflation will accelerate," he said. "Whenever food prices go up, and grains have been very strong recently, with the sum delay, you get inflationary pressures."
10-year treasury yields fell to 2.570%, the weakest level since March 2009. While, the 30-year bond's yield reached 2.719%, the lowest level in 16 months.
Marc Faber cited a weakening U.S. dollar as a second reason to decrease holdings in the US debt.
"(The) U.S. dollar will weaken, that's the policy of the U.S. government to weaken the dollar in order to cushion the downturn in the American economy."
Peter schiff : I am sure I can speak for Mister Marc Faber as well I have met him several times and we agree on this , I think The Bond Market is the mother of all bubbles right now when it burst the loses will dwarf the losses of the combined losses of the stock market bubble and the real estate bubble , no the problem is there is no way for the government to pay this money back the only way they can do that will be a tax increase which is just horrendous and can never be accomplished , or the government gonna have to tell people on social security or medicare that they are not gonna get their checks because the government needs it to pay interests on the debt , and it is not only paying the interest , what i am afraid is that when people realize that we cannot pay this money back we're going to be able to roll all these short term debts so it's not just paying the interest , we gonna have start retiring the principal and that just impossible so it's going to be massive inflation ...."...."this decade is going to be the worst decade for bonds in history , bonds holders are going to be wiped out..."
Marc Faber :"India's long term economic growth should get supported by its huge and growing population. But in the case of China, after it's really incredible economic growth over the last 25 years, the country will slow down. For China, 10 per cent economic growth rate is not sustainable in the long run. India has been built up on much lower level of economic development and has the large growth potential. So far in India, infrastructure has not been put in place, I mean the country's infrastructure has improved but still needs to go a long way. And unlike China, the consumer markets in India are not saturated. For instance in China everybody already has mobile phones and refrigerators. But in India, markets are still not saturated therefore the growth potential is high probably for the next ten to fifteen years." via smartinvestor.in
Marc Faber the publisher of the Gloom, Boom & Doom report, said at a forum in Seoul on last June that cash and bonds will be “very dangerous” in the next 10 years as governments increase money supply to cover fiscal deficits “There’s no other way out but to print money,” . “In the long run, all paper money will go exactly to its intrinsic value, which is zero.” Marc Faber as usual advised investors to protect themselves with assets such as gold and silver. via www.economictimes.indiatimes.com
Marc Faber : "if the Robert Prechter's scenario of the Dow Jones below 1000 comes about which I do not believe but just in case it comes about then Gold may be at $5000 may be it would have gone up who knows , I would rather imagine that in a huge debt contraction that everything will be down then something will be down to zero like paper cash in US dollars , the government bonds will be worthless shares will have some value and gold will have some value "
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.
Jim Rogers betting against JPMorgan
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Investor Jim Rogers is betting against JPM...
This is an excerpt only please visit http://www.JimRogersInvestments.com
for the full story , Thank You >>>>
The Currency War Is Bullish For Gold
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On April 12, the Fed's agents hit the market with 500 tons of naked
shorts. Peter Schiff is a...
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