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
Marc Faber on CNBC Tue 23 Aug : Marc Faber, Gloom, Boom, and Doom Report, who adds that everyone should hold some gold because it is a form of cash. : " I would expect a correction in Gold to occur Marc Faber :"I'm not certain that people should buy gold today because we have a huge run in precious metals recently and they need to consolidate or shake out the weak holder. I would expect the correction in gold to occur. I think that everybody should have some gold if they want to own some cash because gold is the most honest form of cash people can own" "well, it's (ETFs) a claim on physical gold. i prefer if investors hold physical gold in a safe deposit box ideally outside of the u.s. in various locations, Switzerland, Singapore, Hong Kong, Australia, Canada. " "I think it's important in today's very uncertain world to diversify not only the various asset classes, in other words equities, bonds, gold, real estate and also the custody of your assets should be in different jurisdiction , I don't trust anyone"
Marc Faber : " we had a rally from the low of the 9th of August at 1101 on the S&P , to almost 1200 and then we came right down again and basically we did not make new lows and now I think that we can rally again for a while " Marc Faber says " ...what I mean is I think a lot of people will think the market formed the double low and we have some technical indicators that are going to turn positive and so we could rally to around 1250 but as I said before for me we reach the high on the 2nd of May 2011, 1370 on the S&P that we will not go through "
Marc Faber : "I think this is a huge risk and it is a much larger risk for the global economy than it is for the US , because the US is no more a large commodity buyer China is , and If Chinese growth really slows down or if they have a crash as some analyst say they may have , then it obviously will impact the economies of countries like Australia the middle east Brazil Canada and so forth and of course also the property market of Vancouver Hong Kong Singapore Sydney and then it will back fire in the sense that these economies that produce commodities are falling commodity prices they'll buy less goods from China , so it could trigger a vicious circle on the downside and I would say there is a fairly good chance that this could happen,This would really be something that the world central bankers wouldn't be able to help with printing money , they may be able to print money but it wouldn't really help the real economy it may help the financial economy to support equity prices " "I do not think it will be a trade war , I believe and that's why I am ultra bearish about everything , that being ultra bearish about everything I think you better off in equities than in bond or in cash probably the best will be in precious metals , but basically I see that ten years ago a huge shift in the balance of the economic power begun from the western world notable from the US and western Europe to Asia and emerging economies , we have today in the goods market I am not talking about services because services are very difficult to measure but in the goods market the emerging economies are much much larger than western Europe and the US even combined , so this shift in the balance of economic power to emerging economies is accompanied by a shift in political and military power and that the west will not just set there and do nothing , I mean the Libyan expedition is the first shot , I think the western world want to control China by controlling the oil supplies from the middle east and then it will come to war and in war times the one thing you do not want to is in the US government debt bonds equities will do OK and precious metals and some commodities will do very well but I would prepare for the worst but when you think it is true in the worse scenario you do not want to be in Cash US Dollars and in the US Government bonds
Marc Faber : I think they did the right thing that they did not announce QE3 , so they can watch the reaction of assets whether they go lower , I think the market is more likely to move still lower , we are very over sold we can have a rebound like we have today may be we will have a rebound next week or so , but in general I thing we will test the July lows of last year , the S&P at 1010 after that probably we will get kind of QE3 announcement ....
I think the FED is underestimating the severity of the coming economic downturn , and also they've shot out essentially they've spent their bullets , it is very difficult to follow with QE2 right here because you have gold prices going ballistic and you have the dollar being very weak and so there are unintended consequences with implementing QE3 right here ,
....actually the best thing they could (The FED ) do for the market would be to collectively resign , this is my view ...everybody in the world have become a Keynesian everybody thinks the government should do this the government should do that the FED should do this the Treasury should do that , I think sometimes the FED should do nothing and I welcome the decision today that they are not doing anything worse of what they have already done ...
I want to ask you , what have QE1 and QE2 done to the labor market ? Nothing at all , it has done nothing for the housing market , it lifted stocks and it created wider wealth inequality in the sense that people that own assets have done very well and the people that are the lower income recipient groups they are hurt by rising energy prices and rising foo prices ....
