Marc Faber : The World is heading toward a Major Crisis

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 Baron's round table June 2012

Marc Faber : The Economic Situation in the US worse than 10 years ago

Marc Faber : ...well very clearly compared to say ten , twelve years ago the financial condition of the US has deteriorated because A the medium household have lost money and B the real income are down for the majority of people in other words the medium household income is down and the debt level and as I just mentioned the unfunded liabilities are up very substantially - in a Slovak Radio interview
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MARC FABER : US Bonds like The NASDAQ In 1999 - The Biggest Bubble Ever

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about his strategy for global stocks, bonds, commodities and currencies. " If you had asked me about the NASDAQ in December 1999, I would have said this 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 and how have these people faired that invested in the NASDAQ in the final months of 1999 and early months of 2000? It's been a disaster. And I think the government bonds bubble will also burst, but I don't know if it's tomorrow or in three months. I suspect actually maybe sooner than later, because the consensus is now buy US government bonds...I can see why people buy US Government bonds " Marc Faber said

Marc Faber : Huge Fiscal Deficit in the USA overtime

Marc Faber : well basically we have a very large fiscal deficit and we have very large unfunded liabilities , The Democrats should cut the spending which is mainly on entitlement meaningfully and since the economy is very sluggish it will be very difficult to increase taxation so in my view essentially The fiscal deficit is going to become a huge problem overtime - in a Slovak Radio interview
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Marc Faber : a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone

Marc Faber : "If you put one or 100 sick banks in a union, it does not change the fact that they're sick. In my view the markets are rallying because they were grossly oversold. And when markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher. And so I think that combined with seasonal strength in July, the rally has carried on somewhat. But it is another cosmetic fix, a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone. And what it does, basically, it forces Germans savers to bailout and to continue to finance people in Spain and Portugal and Greece and so forth that are living beyond their means." - in Bloomberg
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Marc Faber: The European Banks Are Sick

Marc Faber :" ...If you put one or a hundred sick banks in a union it does not change the fact that they are sick , in my view the markets are rallying because they were grossly oversold and when markets are grossly oversold especially markets of Portugal Spain Italy France then any news that is not a disaster is propels stocks higher ..." says Marc Faber , publisher of the Gloom, Boom & Doom report, talks about his strategy for European stocks and the outlook for the EU debt crisis. Faber speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Marc Faber : We have a Spiral on the Downside

Marc Faber : We are in recession in Europe We have an economic slowdown in the U.S. and we have not really recovered in the U.S. from the lows of 2009 and we have essentially a slowdown in economic growth in Asia and we have sliding commodities prices , so the commodities producers they have less money to buy goods and so we have essentially a spiral on the downside - Click Here to watch the full interview>>>>>>

Marc Faber Bullish on Equities in Portugal Italy Spain and France

Marc Faber Bullish on Equities in Portugal Italy Spain and France

Marc Faber : ...In my view the markets are rallying because they were grossly oversold and when markets are grossly oversold especially markets of Portugal , Spain Italy France then any news that it is not a disaster news propels stocks higher " says Marc Faber adding that what Europe did is just a cosmetic fix that does not solve the long term problems of over indebtedness in the Eurozone , " ...in Portugal Spain Italy and France the markets are either at the lowest of March 2009 or lower and along with that companies and the banks also reasonably good companies have been dragged down and so I see value in equities regardless if the Eurozone stays or is abandoned

Marc Faber: Investing opportunities in Italy, Portugal & Spain

Dr Marc Faber is interviewed by a Slovak Radio via phone directly from Thailand,He talked about the situation in the U.S., EU and Asia, and gave his opinion on precious metals.

Question : Yesterday (05 July) The ECB cut its base rate to a historic low and the conditions for release of collateral to banks. This will help Europe?
Marc Faber : I do not think so. I think whatever now the government will undertake may postpone the problems but it does not solve them , and the problem is too much debt. I mean I would say how long would the Germans essentially be willing to finance the excess consumption in Spain, Italy, Greece and Portugal and so forth . And I would like to add that although the situation is not ideal in these countries and these countries are close to the lows in 2007-2008 and may even fall even lower, there are decent companies in Spain Italy and Portugal that are now relatively cheap and in which Today, in my opinion is worth investing. I see real value there.

Marc Faber : Markets Oversold Especially in Europe

Q: What did you read first of the kind of reaction global equities had to the Euro Summit and the notes that came in from there?
Marc Faber : To start with, I think markets were oversold especially in Europe. When there was moderate good news, there was a lot of European short covering and a lot of stock rebounded by 5-7% in just one day.  - in CNBC TV 18 interview
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Marc Faber : We are still in a High Risk Environment

Q: Would you say the rally is probably short-lived and saw the best part of it play out by last week itself?
Marc Faber : This is too early to tell. Basically, we made a low in early June and at 1261 on the S&P and then we rallied and we came down again, but we didn’t test a new low. We may rebounce to around 1400 on the S&P. Don’t forget July is a month of seasonal strength and that we are coming into the election, there maybe some more money printing and fiddling with statistic sense of ours. So the market may actually rally a bit more. But it doesn’t change the global picture, which is essentially for a global economic slowdown, for an increasing number of companies that are reporting disappointing sales for forecast, for earnings.
When there is a minor disappointment that’s what the case on Friday in the case of Nike, the stock then drops very significantly and erases essentially all the gains of the last three or six months. So we are still in a high risk environment. Eventually, I think that in the next 12 months, you will be able to buy most markets at a lower level than today. The only stocks I bought in the last 10 days are from the fresh issues in Portugal, Spain, Italy and France. - in CNBC TV 18 interview
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Marc Faber : Not a particularly Happy Time for Investors Recently

Marc Faber : We have to be very specific. The total return of equity if you include dividends since 2007 hasn’t been a disaster. It hasn’t been particularly good, but it hasn’t been a disaster and the return from bonds have been very good and for commodities depending which ones you owned was also reasonable. So I think for investors, the situation was not all that bad. But I concede that a lot of people lost a lot of money because they were badly positioned, either overweight, stocks that went down a lot or they were in the case of the US heavily geared into the property market that tumbled and reversed. So I agree that it hasn’t been a particularly happy time for investors. - in CNBC TV 18 interview
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Marc Faber : The Euro Not a very desirable Currency

Marc Faber : In my view, the euro is not a very desirable currency, but the US dollar is not much better. I think if you look at the action of central banks around the world, it is very difficult to find any paper currency with which you can be particularly happy. If the Chinese economy slows down more as I expect it will then you will also have easing in China and capital flight and maybe the Chinese RMB will weaken.
Among the context of who is the least ugly currency I would say probably the US dollar for the time being, but that doesn’t change the fact that the US dollar was overbought recently and sentiment surrounding both European stocks and the euro was extremely negative. So I think a rebound in the euro may continue very well and then will have renewed weakness in my view. - in CNBC TV 18 interview
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Marc Faber Video Interview - CNBC TV18 - 02 July 2012

Marc Faber : “Don’t forget July is a month of seasonal strength and that we are coming into the election, there maybe some more money printing and fiddling with statistic sense of ours. So the market may actually rally a bit more. But it doesn’t change the global picture, which is essentially for a global economic slowdown, for an increasing number of companies that are reporting disappointing sales for forecast, for earnings.”

Marc Faber : Global markets to plunge further in 12 months

Marc Faber : Basically, we made a low in early June and at 1261 on the S&P and then we rallied and we came down again, but we didn’t test a new low. We may rebounce to around 1400 on the S&P. Don’t forget July is a month of seasonal strength and that we are coming into the election, there maybe some more money printing and fiddling with statistic sense of ours. So the market may actually rally a bit more. But it doesn’t change the global picture, which is essentially for a global economic slowdown, for an increasing number of companies that are reporting disappointing sales for forecast, for earnings.
When there is a minor disappointment that’s what the case on Friday in the case of Nike, the stock then drops very significantly and erases essentially all the gains of the last three or six months. So we are still in a high risk environment. Eventually, I think that in the next 12 months, you will be able to buy most markets at a lower level than today. The only stocks I bought in the last 10 days are from the fresh issues in Portugal, Spain, Italy and France. - in CNBC TV18 02 July 2012

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