Marc Faber Investment Picks for 2012

Marc Faber : I still like my January investment picks. As a group, Singapore REITS look OK. Among them I like Mapletree Commercial Trust [MCT.Singapore], Frasers Centrepoint Trust [FCT.Singapore], K-REIT Asia [KREIT.Singapore], Mapletree Logistics Trust [MLT.Singapore], Ascott Residence Trust [ART.Singapore], Cache Logistics Trust [CACHE.Singapore] and Parkway Life [PREIT.Singapore].
I am also warming to gold shares. Gold corrected to $1,522 last December from $1,921 in September. It rebounded to $1,795 in February and is back down around $1,600. The correction could last longer, but given that governments will print more money, gold is relatively effective as a currency. My preference is physical gold, but I would also own some gold shares, which have been decimated. Goldcorp [GG] is attractive because most of its properties are in the U.S., Canada, and Mexico. The company isn't exposed to regimes that are talking about nationalizing resources. In general, stock markets are oversold. The U.S. government-bond market is overbought. The U.S. dollar is overbought, and gold is oversold near term. - in Barron's roundtable June 2012

Marc Faber : The breaking point could be three, four, five years away

Marc Faber : The breaking point could be three, four, five years away. The world is heading toward a major crisis. In the meantime, central banks can continue to print money and markets might move up. Since 2009 stocks around the world have more or less doubled. But the economy hasn't performed well, and the typical household hasn't been helped. With quantitative easing, money flows into the hands of relatively few people. I am very negative about the outlook longer term.
It is safest to buy U.S. Treasuries because the U.S. can print money. It will pay the interest. But you are earning only 1.6%, and the cost of living is increasing by about 5% a year around the world. You are getting a negative real return. - in Barron's roundtable June 2012

Outlook for The Stock Market For the Rest of 2012

Marc Faber : Most markets peaked in May 2011. The S&P 500 fell to 1,074 by Oct. 4 from 1,370. Then we had a strong rebound with the index making a new high at 1,422. This high wasn't confirmed by other indexes, such as the Value Line Index, the Russell 2000, and the Dow Jones Transportation index. The S&P 500 is vulnerable at this level. I anticipate further weakness in the second half of the year. Corporate profits will disappoint. Some 40% of S&P 500 earnings come from overseas, and a large proportion are generated in Europe. There is no resolution to the problem in Europe because no one wants to accept austerity. The best outcome for Greece probably would be to exit the euro zone. But the new Greek drachma would depreciate by 50% to 70% against the euro. The Greeks don't want their pensions paid in a depreciating currency. Nor do they want austerity, as their pensions and government salaries would be cut by 50%. - in Barron's roundtable 2012

Marc Faber Recommends Diversification

Marc Faber : You are asking a very good question because I have been thinking about this a lot. High quality government bonds of Germany, Switzerland, Japan and the US are at a very low level of interest rate and are no longer safe. So whereas I am not optimistic about asset prices, I think that if you take a 10-year view, then just as an example if you I have to to buy over the next 10 years and the holding period is 10 years, a US treasury note at the yield of 1.6% or I give you the opportunity to put your money in Johnson & Johnson that yields 3.5%. I happen to think that Johnson & Johnson over the next 10 years will outperform treasury norms or treasury bonds of 30 years maturity. But you live with volatility, may be the next 10 minutes or next three months or next six months treasuries may still outperform, but I believe the notion that US treasuries are safe is misplaced.

Government Bonds of Germany, Switzerland, Japan and the US are no longer Safe

ET Now: Do you think globally money managers are extremely risk averse? If I look at US bond yields, they are nearing 1%. If I look at German bond yields, they are also nearing 1%. Do you think it is a matter of time the world will be opening up to risk or do you think for the next two or three quarters risk off trade will continue?
Marc Faber: You are asking a very good question because I have been thinking about this a lot. High quality government bonds of Germany, Switzerland, Japan and the US are at a very low level of interest rate and are no longer safe. So whereas I am not optimistic about asset prices, I think that if you take a 10-year view, then just as an example if you I have to to buy over the next 10 years and the holding period is 10 years, a US treasury note at the yield of 1.6% or I give you the opportunity to put your money in Johnson & Johnson that yields 3.5%. I happen to think that Johnson & Johnson over the next 10 years will outperform treasury norms or treasury bonds of 30 years maturity. But you live with volatility, may be the next 10 minutes or next three months or next six months treasuries may still outperform, but I believe the notion that US treasuries are safe is misplaced. - in ET Now 21 June 2012

The Fed Will Have up to QE99

Marc Faber : Yes, that is quite a good assumption. I think that the Fed will not only have QE3, but QE4, 5, 6, 7, 8, 9, 10, up to 99 until the whole system collapses. - in ET Now 21 June 2012

Marc Faber: The Economy is Slowing Down Worldwide

Marc Faber : Stock markets around the world have given a very clear indication that not all is well in the global economy. As you said Europe is in a recession. In the US there is hardly any growth. If you look at all this data you have to assume that the slowdown is more pronounced. My personal observation is that presently there is no growth in Asia. It does not mean that we are in a depression, we had a boom and now we are no longer growing. It is just flat, but that is reflected in equity prices and I think a lot of corporate profits will begin to disappoint. - in ET Now 21 June 2012

Marc Faber Outlook For The US Dollar in 2012

Marc Faber : I think it is very difficult to be bullish about the US dollar or anything in the US economy. But, compared to other currencies, the dollar is now a relatively safe currency. Global liquidity is tightening and so the dollar probably will continue to appreciate, most likely also against Euro. But it is not that the US dollar is particularly good. It is just less bad for the time being. I have to specify for the time being compared to other currencies. - in ET Now

Marc Faber : Investors should Diversify not just Hold Gold

Marc Faber : I do not think it is necessarily the best asset. What I am suggesting is that people should diversify their assets and should own some gold compared to paper money. Over time central banks will continue to print money everywhere in the world. Therefore, the purchasing power of paper money will decline. So I would own some gold. We are in a correction period and we may still go lower. But on this weakness I would continue to accumulate gold. - in ET Now

Marc Faber : Commodities weakness is a clear indication of a global economic contraction

Marc Faber : “This weakness is a clear indication of a global economic contraction…fundamentals have been deteriorating for some time but now the eternal bulls have thrown in the towel,” Faber told CNBC on Friday. “In other words, the perception has changed.” Faber expects more weakness in industrial commodities, though he said agricultural commodities "look better". - in CNBC

These are The Stocks that Marc Faber Recommends

Question : So you're recommending equities, despite the poor backdrop?
Marc Faber : I still like my January investment picks. As a group, Singapore REITS look OK. Among them I like Mapletree Commercial Trust [MCT.Singapore], Frasers Centrepoint Trust [FCT.Singapore], K-REIT Asia [KREIT.Singapore], Mapletree Logistics Trust [MLT.Singapore], Ascott Residence Trust [ART.Singapore], Cache Logistics Trust [CACHE.Singapore] and Parkway Life [PREIT.Singapore].
I am also warming to gold shares. Gold corrected to $1,522 last December from $1,921 in September. It rebounded to $1,795 in February and is back down around $1,600. The correction could last longer, but given that governments will print more money, gold is relatively effective as a currency. My preference is physical gold, but I would also own some gold shares, which have been decimated. Goldcorp [GG] is attractive because most of its properties are in the U.S., Canada, and Mexico. The company isn't exposed to regimes that are talking about nationalizing resources. In general, stock markets are oversold. The U.S. government-bond market is overbought. The U.S. dollar is overbought, and gold is oversold near term.
- in Barron's Roundtable - June 2012

Marc Faber : The Germans could lose patience and decide to exit the Eurozone

Marc Faber : " I think the dollar had a very strong rally and the euro became very oversold , I think the Greek election will be favorable in other words the Greeks will decide not to leave the Eurozone and the problems will be postponed because they will not implement the austerity that is demanded by them , and I do not know what the actual outcome will be but I think it is quite possible that at some stage the Germans will lose patience and that They will exit the Eurozone " - in CNBC Interview
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Marc Faber : We Are Surely Approaching A Major Low In Interest Rates

Marc Faber :  The Nasdaq was in a bubble at the end of 1999. It still managed to rise 30 percent to the March 2000 peak. Thereafter, it was all the way down. Possibly Treasuries rally more, but after a bull market, which began in September 1981, we are surely approaching a major low in interest rates. I am sure that over the next 10 years investors buying today U.S. 10-year T-notes and 30-year bonds will lose a ton of money. - in FirstCoastNews

Marc Faber likes the Singapore Dollar The Thai Baht The Malaysian Ringgit and the US Dollar only in the Short Term

Marc Faber : " I think the Singapore Dollar is a relatively stable currency , I believe that the Thai Baht The Malaysian Ringgit are relatively solid currencies "
" I kind of like the US Dollar , we had a big move in the US Dollar I think it's correcting now I think the further move will come because as global liquidity tightens it's US Dollar friendly but longer term you cannot be very optimistic about the US Dollar "

Marc Faber Call on the Euro - CNBC 15 Jun 2012

The Gloom, Boom & Doom Report author and publisher , Marc Faber thinks the final outcome of the Greek elections will be that the Greeks will decide not to leave the Eurozone, and the problems will just be postponed because they won't implement the austerity measures expected of them. " I think the dollar had a very strong rally and the euro became very oversold , I think the Greek election will be favorable in other words the Greeks will decide not to leave the Eurozone and the problems will be postponed because they will not implement the austerity that is demanded by them , and I do not know what the actual outcome will be but I think it is quite possible that at some stage the Germans will lose patience and that They will exit the Eurozone " says Marc Faber

Marc Faber : Things to get worse before they get better?

Marc Faber : Yes, possibly much worse. Central bankers will argue that more stimulus is needed. But the crisis has occurred in large part because governments have grown excessively large. The private sector produces growth. When government is 40%, 50%, 60% of the economy, the economy won't perform well. If you cut government spending meaningfully, you produce more growth, although this can be painful in the near term. Canada took this course in the mid-1990s. The outlook is grim for the federal deficit in the United States. Regardless of who wins the election, there will be compromises. But spending cuts will be back-end loaded and tax increases will be postponed. We won't see a federal deficit below a trillion dollars for a long time. - in Barron's 2012 Roundtable Report

Marc Faber - Barron's Roundtable - June 2012 - Markets Outlook

Marc Faber : The global economy has slowed considerably. Europe is in recession, and growth in U.S. GDP might owe more to statistical aberrations than reality. In Asia, the Chinese economy has been decelerating sharply, which impacts China's trading partners and industrial commodity prices. Lower demand for commodities hurts commodity producers, whether in Argentina, Brazil, Africa, or Russia. - in Barron's Roundtable - June 2012

Marc Faber : the Euro is Doomed , only Germany will stay in Eurozone

This is an interview of Marc Faber in french with the Swiss radio RTS
Marc Faber explains that the Euro is doomed that we should fire all the Eurocrats in Brussels and that only Germany will be able to stay in the Eurozone Marc Faber : il faut licencier les technocrates , l'euro nous a ruiné

below is an improvised translation for those who cannot understand french :
host:You predicted a war 2 yrs ago, are you still thinking of it now?
Marc Faber : I think that the economy will not improve in the world, and usually people cure a bad economic situation by waging wars. It is obvious that the geopolitical tensions today are growing.
host: under which shape this war will occur?
Marc Faber : It's hard to tell, but it is obvious that China is Middle East oil dependent and that concerning the West, it seems that they intend to control the Middle East oil sells. I think this will increase the tensions between China and the USA. It might not be a conventional war, but it can be a guerrilla style war in countries such as Pakistan or Afghanistan.

host: therefore, there will be some military involvements in it? Is this what you meant?
Marc Faber : yes, for sure. By the way , Middle East is already explosing. That is totally obvious.
host: Today, Europe is catching more attention than the USA, Let's go straight:is the Euro condemned?
Marc Faber : Yes, some countries will leave the Euro zone: Greece, Spain, Portugal ..and maybe all countries except Germany.

host: it is almost a joke, isn't it? Europe cannot go along this way.
Marc Faber : indeed,but IMO the european economic situation would be better without the Euro.

host: So, what u are saying is that all countries except Germany should exit the eurozone.Why Germany could be able to stay in?
Marc Faber:Germany doesn't have an excellent economic situation but surely much better than in other countries.The issue in Europe, The USA and many others western countries and Japan is too much debt. In other words, the debt increased more than the PIB during the last 20-30 yrs. It is simple, we have too much debt and too many future obligations concerning social welfare.

host: How long before the eurozone to explode?
Marc Faber : It depends on politicians/policy and on the way they want to manage the Euro. But IMO, there are bankrupt countries such as Greece, one should realize that.You can keep bailing them out which is IMO not particularly fair 'cos if they are bankrupt, there are some reasons for that, one should first deal with those problems.
host: what is "magic" recipe about it, people are talking a lot about austerity, we did some and we get now people like Francois Hollande the new French President talking about growth. What should be done?
Marc Faber : Listen, it makes me laugh when people are talking about austerity in Europe. In 2000, governments took 44% of the economy, since then it increased by 76% and now governments are providing 49% of the European economy. It is that the main problem, we have never seen austerity. We always tried to solve the problems with more interventions from the governments.Economy is dynamic if provided by the private sector and not by governments.
host: The government pro-growth measures as suggest Francois Hollande is something totally wrong and not credible?
Marc Faber : It is a catastrophe, IMO in order to restart the European economy, you have to cut the government spending by 50% and fire most of politicians in Brussels
END 

Marc Faber : Corporates Bonds better than Government Bonds

Marc Faber : ...You can have a recession that has some inflationary symptoms in the system and so in a global recession what will also happen is that tax revenues will collapse and the fiscal deficit will go ballistic , so the quality of government paper will deteriorate , I think may be if you believe in bonds you might be better off in corporates bonds of high quality companies " says Marc Faber in 07 June 2012 on Bloomberg TV
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Marc Faber : we are surely approaching a major low in interest rates

Marc Faber, editor of the Gloom, Boom and Doom report, says this in an e-mail: "The Nasdaq was in a bubble at the end of 1999. It still managed to rise 30% to the March 2000 peak. Thereafter, it was all the way down. Possibly Treasuries rally more, but after a bull market, which began in September 1981, we are surely approaching a major low in interest rates. I am sure that over the next 10 years investors buying today U.S. 10-year T-notes and 30-year bonds will lose a ton of money." - via USA Tooday

Marc Faber: Europe is in recession today

Marc Faber: "I'm convinced that Europe is actually in recession today ... There is a meaningful and more substantial slowdown in China than the official statistics would suggest. At the present time there probably is hardly any growth at all, so that slows down the demand for industrial commodities. That then slows down the production in countries that produce industrial commodities. So you have essentially a chain, a vicious spiral going through the global economy, which means that corporate profits in the U.S. ... will disappoint" - in Fox Business News

Marc Faber : US Government Bonds is the Biggest Bubble ever

Marc Faber : ...If you had asked me about the NASDAQ in December 1999 I would have said it is the biggest bubble ever and yet the NASDAQ continued to go up 30 percent until March 21st 2000 , and then what happened to the NASDAQ ...it's been a disaster and I think the government bonds bubble will also burst but I do not know tomorrow or in three months I suspect it actually may be sooner than later because the consensus is now buy US Government Bonds , I can see why people buy US Government bonds .....
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Marc Faber : U.S. Bond Bubble to Burst

Marc Faber :  " ....so in Europe what you have are many shares of good quality companies that are yielding 5 to 7 percent , so I am saying they are relatively attractive compared to cash and to bonds , I am not saying that they will go up and in fact I think the global bear market has begun and we are gonna go lower , but if you look ten years out , I think if you buy a ten years US treasury at a yield of 1.6 percent that is the maximum you will earn whereas companies who have dividend yields of 4 to 7 percent I think they will provide you with higher returns ..." says Marc Faber on this 07 June 2012 on Bloomberg TV

June 7 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about his strategy for global stocks, bonds, commodities and currencies. Faber speaks with Sara Eisen on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

MARC FABER: The Best Outcome For Greece Would Still Be Absolutely Horrible For The Greeks

Marc Faber : The best outcome for Greece probably would be to exit the euro zone. But the new Greek drachma would depreciate by 50% to 70% against the euro. The Greeks don't want their pensions paid in a depreciating currency. Nor do they want austerity, as their pensions and government salaries would be cut by 50%. " Marc Faber explains in the new issue of Barron's

Marc Faber : Warming to Gold Shares

Marc Faber : "I am also warming to Gold shares. Gold corrected to $1,522 last December from $1,921 in September. It rebounded to $1,795 in February and is back down around $1,600. The correction could last longer, but given that governments will print more money, gold is relatively effective as a currency. My preference is physical gold, but I would also own some gold shares, which have been decimated. " - In the new issue of Barron's

Marc Faber : Europe Should Accept Austerity

Marc Faber : "There is no resolution to the problem in Europe because no one wants to accept austerity."
"The best outcome for Greece probably would be to exit the euro zone. But the new Greek drachma would depreciate by 50% to 70% against the euro. The Greeks don't want their pensions paid in a depreciating currency. Nor do they want austerity, as their pensions and government salaries would be cut by 50% " - In the new issue of Barron's

Marc Faber : The Gold Price have Bottomed

Marc Faber : "I'm not sure that Gold will not make a new high this year, but I think we've bottomed out and some gold mining shares have become very very inexpensive compared to the reserves they have. And i think that in the current environment where it is clear that the worse the economy becomes the more the money printers will be at work, that to own a currency whose supply can not be increased at the will of some clowns that occupy the central banks is a desirable investment." - in Bloomberg TV

Marc Faber : The Chinese Economy is hardly growing

Marc Faber :   .......Well I think that if you look at electricity production, cement production , steel production, it's essentially flat to down vis a vis a year ago  and these are very important indicators the housing market and construction has slowed down,  so i think these are very meaningful signs indicators that the economy is hardly growing at the present time. and then you look at the demand for iron and for copper coming from china, it essentially all flat to down, otherwise prices wouldn't be so weak. so i think that i would rather rely on those statistics. but I'd just like to mention one point and i think you should ask Jeremy Siegel about this, you know, everything looks bad at the present time and people are relatively bearish. at the same time you have the ten years note at less than 1.5% and you have say a stock like Johnson & Johnson yielding almost 4%. I'm not saying that Johnson & Johnson won't go down along with the rest of the market, I'm just saying if you have a time horizon of ten years, i believe you're going to make more money in Johnson & Johnson than in u.s. government bonds - in Squawk Box CNBC
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Marc Faber : Europe is in a Recession , China is Slowing Down

Marc Faber : I am convinced that Europe is in a recession today, if you add every country. and I think there is a very meaningful and more substantial slowdown in china than the official statistics would suggest, probably there is at the present time hardly any growth at all. and so that slows down the demand for industrial commodities and that then slows down the production in countries that produce industrial commodities and their demand. so you have essentially a chain, a vicious spiral going through the global economy, which means that corporate profits in the and don't forget about 40% of corporate profits are outside and of that I would imagine about 50% is in europe, that corporate profits will disappoint.” - in Squawk Box CNBC
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Marc Faber & Jeremy Siegel : Buy Stocks Not Bonds

Marc Faber, Siegel Agree: Buy Stocks Instead of Bonds ,"The ECB should ensure all the deposits of the major banks in the euro zone," says Jeremy Siegel, of the Wharton School at The University of Pennsylvania. Meanwhile Marc Faber, "The Gloom, Boom & Doom Report," shares a bearish view on China. Harry Wilson, former Silver Point Capital partner, weighs in.

Marc Faber : The FED to announce QE3 only if The S&P drops to 1200

Marc Faber : I find it quite funny this talk about an exit strategy or an exit point because that they don’t have. And I think there will be no exit, but continuation of money printing. But I have to give credit to Mr. Bernanke. If I were in his shoes in the current situation, with the S&P having risen to 1422 the other day, I wouldn’t have embarked on QE3. I would rather wait and announce there won’t be any QE3 for the time being or depending on market conditions or on economic conditions and wait what happens, and if the market sells off 100 points on the S&P or 200 points, say it dips down to 1200 on the S&P, then come up again as the big savior of the whole financial system by implementing QE3 - in financialsense

Marc Faber : in Asia we have more inflation than what the governments publish

Marc Faber : Well, basically in Asia we have a lot of inflation and much more than what the government published. I mean prices are going up substantially and the economies are still doing reasonably well because we have a competitive advantage and we have to make the consumption growth. But, basically there’s a difference, I mean everywhere I go in the world there’s one thing that strikes me. You go to a luxury hotel, there’s Maserati’s, Ferraris, Bentleys, Jaguars, and so forth in front of the hotel and the ordinary people are struggling. I see that everywhere. And, so I think that in Asia we have also imbalanced growth and we have widening social divisions and rising social tensions and I also think that the Chinese economy, which grew a trend line between 2000 and 2007, and they printed money, had huge fiscal debt, and so forth and they are now in a significant slowdown period. I’m not talking about the stock market. Maybe the stock market goes up because of money printing. All I’m saying is the economy is slowing down very significantly which will have implications on the global economy. - in chrismartenson interview

Marc Faber : The Greek issue has been completely overplayed and misinterpreted

Marc Faber : Personally, I think that the Greek issue has been completely overplayed and misinterpreted. The climax of the Greek issue was in, say, October/November of last year and everybody was very bearish on what happened because of the bailout of Greece. And the market’s rising very strongly: we have more than 25% from the October 4th low when the S&P was at that one thousand and seventy-four. So I think that the Greek issue is not market determining. In other words, the market focuses on other issues that are more important. - in chrismartenson interview

Marc Faber : The Chinese Economy is much weaker than what analysts suggest

Marc Faber : ...But how the Chinese economy is doing, you only need to watch at the industrial commodity prices and how weak they have been , because if you look at the year's 2000 to today, industrial commodity prices and the chinese stock market correlated very closely. Ande so when industrial commodity prices are weak, it tells you something about the health of the Chinese economy and I think the Chinese economy is much weaker than what analysts suggest - in CNBC
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