Marc Faber : "...An investor has the choice to invest in real estate, in equities, in bonds, in commodities, and I separate precious metals from commodities, from industrial and agricultural commodities, because I consider it money. Also we can buy art, and stamps,and other collectibles.I have a large subscriber base for my Gloom, Boom and Doom Report , and I asked each one of them to let me know if they have the impression that the cost of living increases,in other words, the percentage of how much they pay every year, more, for their families,is less than 5%. So far I have not received a single email, so I think inflation is around 5%. The return on deposits is essentially zero. And then people begin to worry, because paper money is no longer a store of value, and at the same time, it is a bad unit of accounts, because it is debased by the central bank.So people buy paintings, they buy real estate, they buy stocks, they buy, to some extent,bonds – last year, we had large inflows into bond funds– and they buy precious metals.The problem with all these easy monetary policies and artificially low interest rates, is that not everything goes up at the same time. In other words, we had a bubble in the NASDAQ in 1997 to March 2000, then the bubble burst. Then we had a real estate bubble 2000-2006. Then in September 2007 and July 2008, oil went from $78 to $147and the CRB went ballistic, so we had a commodities problem. In 2008 everything collapsed. Oil, in an unprecedented move, went, in July 2008, from $147 to a low of $32in December 2008. In other words, in six months, oil fell from $147 to $32 a barrel.These kinds of moves are brought about by the Federal Reserve monetary policies, and for the investor, there is no point to be overly dogmatic. From 1999 to 2007 and 2008,gold outperformed equities by a huge margin. Also, silver outperformed equities by a huge margin. In 2009, equities outperformed gold, and from here onward, it is going to be the same pattern. There will be suddenly other assets that appreciate, and some assets go down.I happen to think that some prices will go down, but they have become oversold on a year-term basis, because over the last three months, the whole world became overly enthusiastic with the inflation phase, so the thinking was, government bonds are bad, and equities are good. That may reverse for a little while, but I think long-term if you look at ten years, one of the worst investments will be long-term U.S. government bonds."
This was an extract of the long interview that Dr. Marc Faber did with McAlvany on 23 February 2011 , below is the full interview :
Tuesday, March 1, 2011
Bill Fleckenstein : The Fed is Printing Money to Cover Bank Theft Leading to Food Inflation
The FED printing Money is causing food riots worldwide :
Bill Fleckenstein hedge fund manager and investor based in Seattle , president of Fleckenstein Capital, a money management firm . He also writes a daily Market Rap column for his Web site, Fleckensteincapital.com.
Bill Fleckenstein hedge fund manager and investor based in Seattle , president of Fleckenstein Capital, a money management firm . He also writes a daily Market Rap column for his Web site, Fleckensteincapital.com.
Elizabeth Warren : Assault on Middle Class (March 1, 2011)
Elizabeth Warren : “The middle class has been under assault now, really, for a generation.” The middle class got hit by a "one-two punch" of rising daily living expenses plus flat wages, Elizabeth Warren says
Marc Faber: Buy Oil, Energy U.S. stocks, like KB Home
Marc Faber: Buy Oil, Energy U.S. stocks, like KB Home
Marc Faber :..".well I think from here onward stocks will move very selectively I happen to like energy because if the economy surprises on the upside demand will pick up , in actual facts the demand in developed countries has picked up and in emerging economies it continues to go up " "I think in a, let's say Goldilocks outlook, you have to own some oil,If you're very bearish about the world, it's a nightmare scenario in the Middle East and I don't think that Saudi Arabia can affect production shortfalls of Libya and Saudi Arabia itself is very vulnerable and so I would say under any scenario, I would own some oil and energy shares , but they have rallied a lot and they are overdue for a correction "...etc...
Marc Faber :..".well I think from here onward stocks will move very selectively I happen to like energy because if the economy surprises on the upside demand will pick up , in actual facts the demand in developed countries has picked up and in emerging economies it continues to go up " "I think in a, let's say Goldilocks outlook, you have to own some oil,If you're very bearish about the world, it's a nightmare scenario in the Middle East and I don't think that Saudi Arabia can affect production shortfalls of Libya and Saudi Arabia itself is very vulnerable and so I would say under any scenario, I would own some oil and energy shares , but they have rallied a lot and they are overdue for a correction "...etc...
Marc Faber : I am advising people to accumulate gold
Marc Faber : "...In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.
That is why I am advising people to accumulate gold. Can gold have a correction? Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia...."
in a recent interview with McAlvany
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.
That is why I am advising people to accumulate gold. Can gold have a correction? Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia...."
in a recent interview with McAlvany
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