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 : not necessarily for the corporations. for themselves. The problem is, governments in the western world -- and I'm not singling out the US -- they have grown like a cancer. And now they protect themselves to stay in power and they have a variety of alliances, like, for instance Mr. Obama he has no clue, but when he sees the protesters in Wall Street he immediately says yes, yes, yes that’s a good idea so he can target the minority so he can buy a few more votes. And of course the well to do people want to protect what they worked for and also what they're paying for because as you know in the US roughly 50% of the people don't pay any federal income tax. So actually to say that the rich have not contributed anything is actually wrong. - in CNBC
Marc Faber : I tell you what the u.s. needs. the u.s. needs a Lee Kuan Yew who stands in front of the u.s. and tells them, listen you lazy buggers , Now you have to tighten your belts, you have to save more,you have to work more for lower salaries and only through that will we get out of the current dilemma that essentially prevents the economy from growing - in CNBC
Marc Faber : Well I tell what you to do. I think a flat tax on everybody would be actually a good measure and I think to reduce the regulatory environment in the u.s. and create again an environment. we have expansionary fiscal and monetary policies. but we have restrictive regulatory policies. and it curtails any initiative by the small businessmen. and the large businessmen, he doesn't employ and invest capital in the u.s. does he that in china or somewhere else in the world where the regulatory environment is more favorable. if you look at net investments in the u.s., it's gone down for the last 20 years. and it's now negative. in other words, basically the capital stock of America is not being replenished. but it's being replenished somewhere else. and at the same time, the policies ofthe Keynesians have always encouraged spending. we're not going to get out of recession by savings. spend, spend, spend. that is wrong. the lack of saving is the problem of the united states - in CNBC
Marc Faber : well, my view is and you just heard the interview of the gentleman before, Basically we have the Keynesians and we have the democrats and I am not saying that all democrats are equal, but they want interventions and we had far too many interventions in the western world where the share of the total economy that goes to government and is government sponsored has grown. and that essentially makes it very difficult for the western world to grow substantially. add to that huge level of debts, I don't see how the western world, including the U.S., Japan, and western Europe can actually grow. they're going to stagnate. and when you have stagnation over a longer period of time, then people start to ask questions and then they go after minorities, and Wall Street is a minority they are a minority that anyone else would have done the same. they used the system. but they didn't create the system. the system was created by the lobbyists and by Washington. so they should actually go to Washington and also occupy the federal reserve on the way. - in CNBC 11th Oct 2011
Marc Faber : yes. well, I think the volatility arises because we had the NASDAQ bubble and then we had the housing bubble and the stock market bubble and then a commodities bubble. and usually when the bubble bursts like after 29 or like after the late '60s you have a period of very high volatility for about 10 to 15 years before the markets settle down and then reignite the uptrend. And as far as the dollar is concerned , the reason I am actually quite positive is that global liquidity, despite of the fact that the ECB and the European governments will flood the market with liquidity to bail themselves out that, global liquidity is tightening. and whenever global liquidity is tightening, it's bad for asset prices but it's good for the U.S.. dollar as was the case in 2008. - in CNBC 11th Oct 2011
Dr. Marc Faber of the Gloom, Doom & Boom Report, talks about his outlook for the global economy with Squawk Masters of the CNBC this morning 11th October 201 ha said that he expects volatility in the market to continue , and that he is bullish on the US Dollar because the global liquidity is tightening Despite of the fact the ECB and European governments will flood the markets with liquidity to bail themselves out, global liquidity is tightening," he says. "It's bad for asset prices but it's good for the US dollar.
Professor Steve Keen with Max Keiser's on The Edge to discuss Occupy Wall Street Movement his newest book Debunking Economics 2 and the Australian Housing Bubble . This mind-capped political/financial analysts doom-saying that gold bubble is gonna burst... LoL. First gold isn't a bubble, it's the dollar that's losing power... And second gold is undervalued currently by thousands of dollars. If the market wasn't manipulated by these financial terrorists, an ounce of gold would be around $5k at least by now, just judging by inflation since fiat money was introduced.Let the banks fail.It wont hurt anyone , but people with over 250k in the banks in the u.s. All this bank bail out crap is only bad for average people. The inflation is going to kill you in the end.Better to lose your Job, government,etc then to allow these bailouts.That is why the wealthy is calling occupy wall street people communist . They only giver a damn about their own capital in the bank..
Dr. Doom: Düstere Prognosen für die Weltwirtschaft . Der Schweizer Marc Faber gilt als einer der renommiertesten Börsenexperten der Welt. Weil er schon eine ganze Reihe von Börsencrashs und Wirtschaftskrisen voraussah, trägt er den Übernamen "Dr. Doom". Christoph Romer und Claudio Zanetti sprechen mit Marc Faber und Nationalrat Alfred Heer (SVP, ZH) über die aktuellen Finanz-, Währungs- und Wirtschaftskrisen, sowie über deren Folgen für die Schweiz.
Marc Faber : I think Gold has had a big move , and recently became very overbought , an dollar strength means like in 2008 that global liquidity is contracting and when you have a contraction in global liquidity it hits says industrial commodities a lot strengthens the dollar it hits assets prices and in 2008 the gold prices did not go down but the gold shares went down a lot and so it is conceivable that somebody will say copper is down this much gold is still relatively high I am going to take some profits on my gold positions , I am not selling mu gold because I think in the long run they will print money as soon as the markets in the world are down another ten twenty percent even the republicans will write a letter to the FED 'you have to ease' you understand ? now they can set back and say do not ease you have done enough but as soon as asset prices go down and the economy is weak everybody will again applaud the FED if the print money ....- in Reuters
Marc Faber : "But if you're a long-term investor, each time the market drops 40 percent from the peak, you should start buying. You will then have satisfactory returns in the long run. Not huge, but satisfactory returns,"
Marc Faber : ...and if the Recession occurs obviously all the industrial commodities will get hit hard very hard , and other countries in the world that benefited from rising commodity prices , the Middle East Central Asia Africa Latin America Australasia they are going to get hit very hard and then they are going to have less money to buy goods from Porsche and Mercedes and Ferrari and so forth so it then generates a downturn in global trade- in Reuters
Marc Faber: I would not take the risk to be long 30 year Government Bond in the US for another 3 weeks unless I am a trader , from an investment point of view I regard them to be completely unattractive , but as a trader as I said may be you can make some money in the next ten days or so I wouldn't take the risk and I would prefer to actually bet that we have a repeat of October 2008 to March 2009 when bonds peaked out the dollar dropped out and eventually asset market bottomed out in March 2009 , so I think that from here onwards the downside in Asia I'll be inclined to accumulate shares ...- in CNBC-TV18
Marc Faber : If you look at the environment we are in , there are a lot of similarities with 2008 where basically the financing for the exploration companies dried up the global liquidity shrunk asset prices collapsed but the US Dollar and the US government bonds were strong , and we have a repeat here of that situation ,my saying is that industrial commodities are vulnerable and still remain vulnerable . In the case of Gold and Silver I think increasingly they will be perceived as cash and increasingly they will move in strong hands- in CNBC-TV18
Emerging Markets--Stay away from these at all costs. All emerging markets are falling and making new lows. Even though Faber likes these longer term, they could still fall another 20%-30% before they would be good buys. These markets could even fall to their 2009 lows. However, this will represent a good buying opportunity because these markets will be the first to bottom. - in Seeking Alpha, from the Gloom, Boom & Doom Newsletter
Dr. Marc Faber zum Rettungsschirm und Untergang des EUROs. Die Billionenbombe Staatsanleihen wird platzen. Der Schuldentsunami und die Inflation kommt.
Ein Bilck auf die aktuelle Wirtschafts- und Finanzlage mit dem renommierten Börsenexperten und Herausgeber des Finanzmagazins "The Gloom, Boom & Doom Report" Dr. Marc Faber.
Economist John Williams of shadow stats on the Financial Sense NewsHour Oct/04/2011 : the economy is no so strong , consumer confidence is at the lowest , unemployment is still rising the banking system is insolvent US is still stuck in a recession , and hyperinflation was delayed but still coming
It's true that the dollar has no intrinsic value and is being printed into infinity, but the US dollar will be your best friend for the next few months. As global liquidity contracts on EU debt concerns and a possible hard landing in China - Dr Marc Faber wrote in the latest issue of his Gloom, Boom and Doom Report Dr Marc Faber advises investors to long the Dollar For Now , as he believes that for the long term the dollar is going to zero
Marc Faber : gold could undergo a significant correction similar to what happened between 1974-1976, when gold fell 40% - in the latest issue of the Gloom, Boom and Doom Report
Marc Faber : I think we have a bear market in India, and it will go lower. But if you’re a long-term investor, each time the market drops 40 percent from the peak, you should start buying. You will then have satisfactory returns in the long run. Not huge, but satisfactory returns.
The Indian economy, like the Chinese economy, has very favourable prospects in the long run. We’re starting from a very low GDP per capita in India – some $1,200 against $40,000 in the US. To go from $1,200 to $5000 is not difficult. But from $40,000, it’s hard to go much farther unless you print money.- in www.firstpost.com
Marc Faber: We had a bank failure in 2008 and the financial system in the western world went bankrupt. It was bailed out by governments, but the banks have learnt nothing. This is partly driven by artificially low interest rates and zero deposit rates. The banks continue to speculate on all kinds of products. What happened to UBS in London (where a rogue trader caused huge losses) can happen to any other bank.I have lots of clients and readers of my newsletters, and I don’t know anyone who owns Greek bonds. So why do the banks – particularly French banks — hold Greek bonds and Portuguese bonds and Spanish bonds and Italian bonds? This shows the banks have learnt nothing.
There has to be a separation of banking activity. They can have, on one side, investment banking activity – they can call themselves UBS Giant Hedge Fund; on the other side, the banking sector has to be ring-fenced for depositors and made 100 percent safe. They shouldn’t use that to speculate – as is happening at present. - in www.firstpost.com
Marc Faber : Don’t forget the Chinese invented paper; they are very good at printing money as well. (Economist and commentator) Paul Krugman argues that the overall level of debt doesn’t matter because one man’s debt is another man’s asset. But the problem arises when one man’s debt cannot be repaid. That is going to happen in China because the underground lending market is larger than people perceive. That is a potential problem.
In China, for sure you will see a setback: in fact, it’s already started. Small companies are finding it difficult to get credit, and in the underground market, the lending rates are over 60 percent. That tells you something. The price of copper too is telling you something is not right…
The problem is that the local Chinese are selling and buying properties in Vancouver and in Singapore. They are shifting money outside. So, the insiders are selling and the stupid foreigners have been buying Chinese shares.
It’s very difficult to measure GDP growth in China. We essentially add up goods and services and we calculate an inflation indicator – say, the CPI. The nominal growth less the CPI gives you the real growth. But it’s not only in America that leaders are lying about the true cost of living increases. In China, the rate of cost increases is of the order of 10 to 15 percent a year. Pork prices have doubled over the past 12 months; rice prices are up; energy prices are up. I believe that China’s GDP figures are overstated. - in www.firstpost.com
Marc Faber : There is, for sure. In 2008, the financial sector went bust. In the future, the governments will go bust.
However, Asian governments’ finances are in a much better position than those of governments in the Western world, which have – aside from the published fiscal deficits, unfunded liabilities that are coming due. That will become a huge problem as the population is ageing, and fewer workers support more retirees.
Asia reacted well to the 1997-98 crisis. A period of deleveraging followed: businessmen became conservative, they paid down debt. And banks became cautious in their lending. Asian banks are any day safer than banks in the Western world. I would deposit money in a Thai bank, no problem. They don’t know what a derivative is — because the derivative salesman was stuck in traffic in Bangkok! - in http://www.firstpost.com
Marc Faber : Nobody knows what the world will look like in 10 years. I’m always asked ‘where will the markets go?’ But there’s so much intervention through monetary and fiscal policies that it’s hard to say. My advice is for investors to be diversified: 25 percent in Asian real estate; 25 percent in equities; 25 percent in cash; and 25 percent in gold. - in http://www.firstpost.com
Marc Faber : ...the problem with China is that we do not have precise insights into the size of local lending and underground lending , because a lot of lending in China is unofficial lending that is essentially not carried on the books of Banks and that interest rates on this unofficial lending has been trending much higher recently indicating that market has tightened and that something is not well....I think some real estate markets in China will blow up and massively so we have prices could easily drop 40 , 50 percent - in Reuters...
Marc Faber :Well basically I look at China this way , between 2000 and 2007 the Chinese economy grew and credit expanded as about the same rate as the GDP , slightly higher but not excessively , but after the crisis of 2008 we had essentially a credit driven Boom in China , and whenever you have excessive credit growth and artificially low interest rates , because obviously inflation in China is much higher than what the government is publishing , you have symptoms of bubbles developing clearly in the real estate market there were some over investments and so forth , and therefor I think the slowdown in China is coming or possibly some sectors of the economy will crash , it dos not mean that China is unattractive from a long term perspective , in America from 1800 to 2000 we had 19 economic and financial crisis in the first hundred years in the 19th century we had a civil war we had world War One we had the great depression World War Two and so forth and so on but the country continued to grow , this can happen in China ......- in Reuters
Marc Faber: ...in my view we do not know yet for sure why stocks have been this weak over the last three four months , I think the stock market is a discounting mechanism , and particularly here in Asia the weakness in stocks say here in Hong Kong has to do with a force coming meaningful slowdown in the Chinese economy and disappointing news out of China , If we define a bubble as excessive credit growth and artificially low interest rates than China has had a gigantic bubble , now will it collapse or will it just slow down that is a different issue but I think some sectors of the economy will collapse .... - in Reuters
Marc Faber : I think the US Dollar will continue to rally not because it is a desirable currency but because it is better than many other currencies are ,... - in Reuters
Alessio Rastani a trader being more honest than usual spills the beans live on BBC : "Governments don't rule the world, Goldman Sachs rules the world." he said " markets are ruled right now by fear , investors the big money the smart money U am talking about the big funds the hedge funds the institutions they do not buy this rescue plan they basically , they know the market is toast , they know the stock market is finished , the Euro as far as they are concerned they do not really care they are moving their money to safer assets like treasury bonds 30 years bond and the US Dollar , so it is not going to work " he said regarding the EU bailout plan for Greece , Stock trader Alessio Rastani told the BBC he has been dreaming of another recession, saying that savvy traders would be able to cash in.
His statement shocked people. The clip went viral and he quickly became a poster boy for 'greedy traders'.
Traders thought Rastani was just pointing out the obvious. Others wondered if he was a hoaxer trying to damage the financial industry.The guy is telling the truth, so u can sit down and "ignore" the warning and regret it later, or "act NOW" and Prepare for the worst. Its been 3 years since 2008 crash, and the worse is Yet to COME.
"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild
Marc Faber : I do not think the markets around the world are down because of Greece , it's just a symptom of a problem , I believe the Asian markets are weak the Asian currencies are weak and he economic sensitive stocks like the BHP REITs of this world are weak , because there is a more meaningful slowdown or even a crash in China occurring , the copper price has little to do with Greece it is an insignificant player in the global economy but China is the significant player and so when these economic sensitive assets collapse people should notice and I believe that for now the Asian market remains quite vulnerable , there may be a rebound from an oversold condition but I agree that the markers are probably headed lower having said that if you take a long term view I still believe that the Asian economic growth story is intact i other words following a meaningful slowdown in China , following a set back in China that could be a recession or a crash I think that the Asian economy have some very valid and long term exciting growth potential - in CNBC
Marc Faber : Both equity markets and gold markets have become very oversold, and I think a rebound is occurring,
Following this rebound, which I expect to get underway this week, there will be a longer slowdown. - in CNBC
Harry Dentwith Kerry Lutz 26 Sept 2011 : the baby boomer generation the largest generation in our history which has been driving up our economy and productivity and have been buying homes and driving home prices up in the last 20 years , there was a peak in that around 20097-2008 ans baby boomers stopped buying homes started to save for retirement and eventually retired
Legendary investor Marc Faber, author editor and publisher of the Gloom, Boom and Doom Report, was this morning on CNBC , he talked about the outlook for the Gold market and how he thinks gold price will continue to fall to as low as $1100/oz by the end of the ongoing sell-off he also announced that he is looking to increase his equity exposure and he thinks that gold at this level is quite oversold and that he considers buying some gold in the next two days
Dr Marc Faber told CNBC this morning that he expects Gold to continue to fall "We overshot on the upside when we went over $1,900," he said "We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200." he added
Marc Faber : ...My view has always been that if the S&P drops to around 900 - 950 we get QE3 for sure , but one investors are looking at the stock market and that stocks overseas and it went down yesterday sharply but on the other hand I am very happy because the dollar went up , I think for the US it is more important to have a strong dollar than to have a strong stock market- in Reuters
Marc Faber : I have to say after having been critical of Mr Greenspan and Mr Bernanke for the last fifeteen years for creating the NASDAQ bubble and then creating a gigantic housing bubble and then a commodities bubble and printing money and keeping interest rates artificially low that led to misallocation of capital at least this time around Mr Bernanke did the right Thing , you may debate the technicality of shifting their assets from short into long term bonds , I think one of the problems will occur sometimes in future because let's say the FED had only thirty years bonds and a time would arrive when they should increase short term rates due to whatever , weakness in the dollar or inflationary pressures or rising sharply escalating commodity prices It would be very difficult for them to increase short term rates because then the bond market will tank and they will have a huge loss of their balance sheet , but let's put it this way what they said yesterday is better of what that have said for the last twelve years ...- in Reuters
Marc Faber : you do not need the FED to tell you that something is wrong , the stock market in the US peaked out on May 2nd of this year when the S&P went to 1370 and since then most stocks are down 20 percent , the Banks have collapsed yesterday some of them made new lows and the economic sensitive sector like the materials copper shares iron ore steel have been very weak so you do not need the FED to tell you that something is wrong with the economy the stock market is telling you globally that something is awfully wrong ,
Marc Faber : ....I have lots of clients and readers of my newsletters, and I don’t know anyone who owns Greek bonds. So why do the banks – particularly French banks — hold Greek bonds and Portuguese bonds and Spanish bonds and Italian bonds? This shows the banks have learnt nothing.
There has to be a separation of banking activity. They can have, on one side, investment banking activity – they can call themselves UBS Giant Hedge Fund; on the other side, the banking sector has to be ring-fenced for depositors and made 100 percent safe. They shouldn’t use that to speculate – as is happening at present. - in www.firstpost.com
Marc Faber : “Best decision I have seen for a long time from a U.S. central banker. People say the stock market went down, but the dollar went up. We want to see a strong dollar, never mind the stock market.” - in Fox Business
Marc Faber : Mr. Obama wants to get reelected. We are not talking about economics here. He will do anything to get the vote; to get votes, you have to hand out things.” - in Fox Business
Marc Faber : “The Greeks cannot pay, but lots of people in the U.S. can’t pay either; most banks worldwide are bankrupt. The world is cold. There is not a lot of inflationary pressure on consumer goods but energy prices are up, food prices are up. With zero interest rate, you know what will happen to your insurance premiums? They will go up dramatically.” - in Fox Business News
Marc Faber : ..It is going to be huge but we do not know when because the Central Banks around the world they are going to print print and print , whereby I have to say that today the decision of Mr Bernanke not to expand the balance sheet is the best decision I have seen for a long time from a US central banker , and people say the stock market when down WOW ! I lost some money ! but the dollar went up we are international investors we want to see a strong dollar never mind the stock market ...
The Federal Reserve launches Operation Twist it says it will sell $400 billion of its shorter-term securities to buy longer-term holdings,in efforts to make business loans cheaper. its latest effort to boost a weak economy.The Stocks close at session lows following the Fed's decision to leave rates unchanged,
Marc Faber : ...Well I think it is pretty obvious to anyone except may be the Federal Reserve and the ECB and the IMF that the global economy has decelerated very considerably over the last three months already and I expect further weakness in the economic activity in the second half of this year and that basically the share market which had a huge rally between the end of 2008 and the low in March 2009 that carried the S&P from 666 to 1370 on May 2nd of this year that this bull market is over for now and that we are now in a bear market ....
Marc Faber : The concept of valuation is very difficult when you have zero interest rates , I can make a case that actually the price of gold is still undervalued compared to say the mid 1980s when it was traded at $400/oz , so it is very difficult to say what is valued in this environment , is Picasso a good value or is it over valued ? I do not know , but stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint , may not be quite as cheap as all the strategists claim- in FBN
Marc Faber : “ I am not selling any gold but traders should realize the gold price is extremely overbought,” , “and that it could easily drop toward the 200-day moving average – that is, between $1,500 and $1,600 .” - India-based Business Standard reported Faber saying at a Mumbai conference
( In German ) Interview zur Finanzkrise mit Professor Max Otte und Dr. Marc Faber.
Fast über Nacht hat die Finanzkrise Professor Max Otte berühmt gemacht und zum Bestsellerautor. Als 2006 sein Buch mit dem Titel „Der Crash kommt erschien, nahmen nur wenige davon Notiz.
Interview über Ursachen und Folgen der Finanzkrise.
Themen:
* expansive Geldpolitik (Kreditwachstum) als Ursache der Blasenbildung
* die Unverantwortlichkeit und Dummheit der Regierungen und der Notenbanken
* drohende hohe Inflation
* Unsicherheit von Staatsanleihen
* soziale Umbrüche & Revolutionen
* drohender Staatsbankrott
Gerade über wirtschaftliche Krisen hinweg erweist sich dies für den Anleger als äußerst vorteilhaft.
Marc Faber : «Wir sind alle dem Untergang geweiht, weil uns die Regierungen vollständig übernehmen werden. Die Regierungen werden uns alle in den Bankrott treiben»
Marc Faber : I said earlier this year that the S&P high of 1370 will be the highest for this year then we dropped to 1102 and now we rallied to over 1200 I think the super bears will be wrong and the super bulls will be wrong and that the market will kind of have a trading range , but obviously if the FED prints money like war which is not totally unlikely , then the value of money will lose in other words the S&P could go from this 1200 level here to say 2000 but in gold terms and in inflation adjusted terms it could go down , so I am not a heavy short seller but I can understand the arguments of the isolationists who argue that the private debt collapse in other words the private debt construction will exceed the government debt creation and that therefore the S&P will collapse to 400 , I can understand that and I have sympathy for that that's why I am telling your listeners you should have about 25% of your money in stocks, 25% in real estate, 25% in gold and silver and 25% in cash. - in Yahoo Finance
Marc Faber
: I have to make here a distinction , in Asian societies , if you do
not work you have nothing nobody will give you anything government does
not come in and helps you , the problem is that the baby boomers were
born into a generation of entitlement , whatever you do if something
goes wrong the government will step in and give it to you , you are sick
the government will pay , you cause an accident in the highway ,
insurance paid by the government will pay , and and and ....All I am
saying is basically if you want to have a properly functioning economy
it has to be a market economy , if you believe in a market economy and
capitalistic system you don't believe in government intervention, If you
want to have a properly functioning economy it has to be a market
economy with all its drawbacks and disadvantages and the pain for
individuals. That is the only way it will function. - in Yahoo Finance
Marc Faber : ( Stock Market volatility ) well I do not think it is a sign of a healthy market but it's let's say a Consequence of Zero Interest Rate , I have argued for years that the Federal Reserve with its artificial low interest rate instead of creating monetary and economic stability has created more instability by creating the NASDQ bubble the housing bubble the commodities bubble and now creating a giant government debt bubble and so we are going to have a lot of volatility every year for the next few years where markets will go up and down for at least thirty percent per anum and I think in real terms , inflation adjusted terms it will not make much headways - in Yahoo Finance
Marc Faber : I have to make here a distinction , in Asian societies , if you do not work you have nothing nobody will give you anything government does not come in and helps you , the problem is that the baby boomers were born into a generation of entitlement , whatever you do if something goes wrong the government will step in and give it to you , you are sick the government will pay , you cause an accident in the highway , insurance paid by the government will pay , and and and ....All I am saying is basically if you want to have a properly functioning economy it has to be a market economy , if you believe in a market economy and capitalistic system you don't believe in government intervention, If you want to have a properly functioning economy it has to be a market economy with all its drawbacks and disadvantages and the pain for individuals. That is the only way it will function. - in Yahoo Finance
Marc Faber : I think cash and bonds are not very desirable. Equity and precious metals look okay. However, there will be more volatility. The prices of anything, whether commodity or stocks, depend on many factors. As far as commodities are concerned, I think the global economy is slowing significantly and the demand for industrial commodities will not grow that fast.
Marc Faber : We never really had a recovery in the Western world. The stock markets went up because of the money printing and support in 2009. My view is that they can probably muddle through for another two-three years by piling up the fiscal deficit or printing more money. I do not know when it will happen in 2012 or in 2018, but the next crisis will be worse than the one in 2008. - in business-standard.com
Marc Faber : I think the Indian markets will not go lower to those 2008 levels, but would go lower from the current levels to, may be, 12,000-15,000 levels. From their low in 2009, the Indian markets till recently rose to 21,000, which is almost 100 per cent returns. I do not call this a bear market rally, but a bull market. We now have had the beginning of a bear market.- in business-standard.com
What will drive the gold price? Marc Faber : Gold bottomed out in late January and peaked out on August 23. My first thought was that the closely correlated move between treasury bonds (T-bonds) and gold was illogical. Then, I considered that investors panicked into T-bonds because of a scare that the financial system would implode (flight to safety). For the same reasons, investors rushed into gold. In other words, the gold buyers were not buying gold because of inflation fears but because they were afraid of a systemic failure.
I think it is important for investors to understand the role of gold as an insurance against a systemic failure and not necessarily as a hedge against inflation. I should add that I own gold for both reasons, believing that it will perform well in both an inflationary and deflationary environment. In addition, I am not selling any gold but traders should realise the gold price is extremely overbought and that it could easily drop toward the 200-day moving average – that is, between $1,500 and $1,600 (not a prediction). As I just said, I am not selling my gold because I expect much higher prices in future. But, near term, both T-bonds and gold appear vulnerable to a more serious correction. - in business-standard.com
Marc Faber : I have a reason. I have been writing every month that people should accumulate gold. Yes, there is more room for gold to appreciate further. Most people do not own gold. Most people think gold prices are very high. Today, the gold price is cheaper than in the 1980s when it was around $400 an ounce, considering the increase in global monetary base and the US money printing.
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.
The Fundamentals Have Never Been Better For Gold
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"The fundamentals have never been better for gold. The fact that there’s
so much negativity...
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