Marc Faber – Precious Metals Will Outperform Other Commodities

Marc Faber : “I personally, I play the commodity market and the money printing exercise by central banks through the purchase of precious metals and not through the purchase of industrial commodities.” “Because if as I explained China slows down more than it’s perceived, then obviously the demand for industrial commodities will be weak.” - in Goldseek Radio interview
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Marc Faber : The FED Caused the Crisis not The Free Market

Marc Faber : Ben Bernanke says well the market occasionally fails and so on and so forth but at no time was it mentioned that actually the failure was not the free market the failure was that the free market was not allowed to operate because under the free market system , Mexico would have gone bankrupt in 1994 , LTCM in 1998 , we wouldn't have because of ultra expendituary monetary policies the housing bubble and the housing bust and the FED encouraging people to take out sub-prime loans and so forth and so on , so we had a series of interventions that led to the crisis , now the FED and other central banks just turn around and tell you 'well if we had not eased massively after 2007 the crisis would be much worse' what they are not telling you is that they caused the crisis - in Bloomberg Radio Interview
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Marc Faber : Investors do not Trust the System anymore

Marc Faber : The global economy is in the process of decelerating very significantly , and I at the present when you look at Asia there is no growth , and if Asia does not grow I do not think that the other regions are growing rapidly either , at the same time we have zero interest rates so as an investor you want to put all your money in cash at zero percent interest may be with an institution like MF Global so there is a risk in holding cash , I think a lot of investors are in equities in bonds and in gold and in real estate for the simple reason they do not trust the system anymore , they do not trust the market anymore and rightly so rightly so , there has been an incredible amount of abuse and manipulation particularly by the federal reserve - in Bloomberg Radio Interview
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Europe with the exception of Germany is in recession

Marc Faber : in Europe with the exception of Germany is in recession , so you can assume that the whole continent has no growth at the present time


- in Bloomberg Radio Interview
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The Chinese Economy Not Collapsing but Slowing Down more than the Official Statistic Suggest

Marc Faber : " All these indicators [which he discusses at length from electricity production to Macau gaming revenues and consumer spending habits to appliance and air-conditioning volumes] do not necessarily suggest that the Chinese economy is collapsing, but they reliably do suggest that the economic slowdown is more pronounced than official Chinese statistics would have you believe. In addition, these indicators do not imply that the Chinese stock market will decline further (but it could). Perhaps the weak performance since 2008 has already discounted much of the slowdown in economic growth." during a recent presentation about the possible impact of social and political unrest in North Africa and the Middle East
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The Iron Ore Bubble The Biggest Bubble Ever

Marc Faber, the Swiss investor and ultra bear, says there have been four mega bubbles in the past 40 years. In the 1970s it was gold; in the 1980s it was the Nikkei, and in the 1990s it was the Nasdaq. Bigger than all of them, though, has been the iron ore bubble, a tenfold increase in prices in less than a decade. - in The Guardian

Marc Faber : We have Money Counterfeiters at the Central Banks

Marc Faber on Bloomberg Radio 28 Aug 2012 " ...The facts are we have a global economy that is decelerating very rapidly , month on month here in Asia in July industrial production declined sharply , in Europe with the exception of Germany is in recession , so you can assume that the whole continent has no growth at the present time and in America considering the fiscal deficit the economy is not doing well , and in China we have a country that is at present far weaker than what the statistics have published so that is negative , on the other hand you have the money printers the counterfeiters at the central banks they're going to print money and more money and more money

Marc Faber : America only Produces Prostitutes and Beer

Marc Faber : “The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline, it goes to the Arabs. If we buy a computer, it will go to India. If we purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala. If we purchase a good car, it will go to Germany. If we purchase useless crap, it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US.” - Marc Faber said in 2008 commenting on the US Stimulus package

Marc Faber : The Fiscal Deficit in the US is an insurmountable Problem

Marc Faber : ..I think the debt situation the fiscal deficit in the US is in my view an insurmountable problem , it does not matter who is in the white house the republicans will have a deficit of around 1.3 trillion next year and the democrats will just spend it on different things but the deficit will still be there and that deficit over time will have to continue to be monetized and eventually there will be a depreciation of the purchasing power of money as had happened over the past ten years eventually since the foundation of the federal reserve , so that paper money loses value over time is very clear because the temptation to print money and to have deficit is very high in democracies in particular , so I think there is a risk of hyperinflation , the question is this , if you print money you don't really where the money that is been printed will flow to , it can create inflation in India it can create inflation in China and eventually it will also create inflation in the western world , but it is conceivable that before we have this hyper inflation we would have a deflationary shock and then the central banks knowing nothing else will print money like water and don't forget say the political elite and their cronies who are in the corporate sector they all benefit from asset inflation so if there was a deflationary shock and the market sell off by thirty percent even the republicans will suddenly say well we need more money printing ..... - in Goldseek Radio interview
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I play the Commodity Market & the Money Printing through the purchase of Precious Metals

Marc Faber : ...I personally , I play the commodity market and the money printing exercise by central banks through the purchase of precious metals and not through the purchase of industrial commodities because if as I explained China slows down more than it's perceived than obviously the demand for industrial commodities wil be weak - in Goldseek Radio interview
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Marc Faber : Corporate Profits will disappoint over the next 12 to 18 months

"The corporate sector has recovered remarkably since the trough in earnings in 2009 and we are at record high earnings," Marc Faber said, but added, "Corporate profits will disappoint over the next 12 to 18 months." - in CNBC
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US Economy needs a Massive Easing, a Huge Balance Sheet Expansion

Marc Faber : "I think that if you look at the injection of liquidity and the intervention by the Federal Reserve and the Treasury with fiscal measures, it has already impoverished the U.S. economy," - in CNBC
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Marc Faber : Germany likely to go into Recession soon

Marc Faber : "Europe is already in recession," Faber said. "Germany is still growing very, very slightly, but is likely to go into recession soon." - in CNBC
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Marc Faber Interview on Goldseek Radio - Aug 23, 2012

Marc Faber :" If we break down the global economy into Europe China US and emerging markets most noticeably resource producers , the US is hardly growing at the present time , Europe is in recession and China has decelerated more than official statistics would suggest and so the global economy is not doing well at the present time ..." says Doctor Faber

Marc Faber : The Real US Fiscal Deficit is Over 4 Trillion a Year

Marc Faber : 'True' US Fiscal Deficit Is Over $4T Annually "...The way I feel it's going to play out is basically it doesn't matter whether if the republicans win the election or Mr. Obama. the fiscal deficit will stay around $1.3 trillion for a long time , and in my view it will go up. Either way, the fiscal deficit as published by the media, not have a true fiscal deficit, because the true fiscal deficit one would have to include the accumulated unfunded liabilities, and if you report that the fiscal deficit already today it would be in the order of over $4 trillion annually.

Corporate Profits will disappoint over the next 12 to 18 months

Marc Faber : “The corporate sector has recovered remarkably since the trough in earnings in 2009 and we are at record high earnings,” “Corporate profits will disappoint over the next 12 to 18 months.” in CNBC
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Marc Faber : US Deficit will go up

Marc Faber : “The deficit is $1.3 trillion and, in my view, will go up,” - in CNBC
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Marc Faber : 100 Percent Chance of Global Recession

Marc Faber : “Europe is already in recession,” “Germany is still growing very, very slightly, but is likely to go into recession soon.” “The U.S. economy has decelerated and I don’t see much growth in the next six to 12 months,”
“I think that if you look at the injection of liquidity and the intervention by the Federal Reserve and the Treasury with fiscal measures, it has already impoverished the U.S. economy,”

Marc Faber: Balanced Approach For the Coming Crash | McAlvany Commentary

Marc Faber sees two established trends in the last ten years one is the rally in commodities and the second is the rising of China " if you look at the years 1980 to 1998 / 2000 we were in a bear market for commodities and what has been striking for the last ten / twelve years is the very strong performance of commodities and obviously also of the Chinese economy that has really come a long way and is challenging now basically the largest economy in the world which is the United States , these are two well established trends " says Marc Faber

*Bubbles in Earnings and Treasuries
*Governments by nature are devious
*Gold as insurance against political stupidity

Marc Faber Forecasts for the Global Economy - Video Presentation

Marc Faber's forecasts for the global economy " ...In 1970 there was not a single investment bank that was a public company All of them were private partnerships (, and this is very important to understand , if you have a private partnership the risk profile or the risk that the partners will take are of course of a different nature than if you play with other people's money , and so the whole culture of investment business has changed enormously whereas a partner was liable with all his assets , today essentially if you are running a bank or a hedge fund and you go bust essentially that does not hurt you ..." says Marc Faber

Financial Survival Is about Diversification & Personal Survival

16.Aug.12 : Marc Faber on The Financial Survival Network with Kerry Lutz " for sure there will be a very big shoe to drop the question is when , if you have the printing presses you can postpone problems for quite some time but obviously not forever " says Marc Faber ....

Zero Growth in China and Asia this Year

Marc Faber : well I think we could argue do we have a cyclical downturn [in China] or more structural downturn , the fact is simply China's population is twice the size of that of Europe and America combined and the way that the US had recessions that occasionally were concentrated in one state say in California in the early 1990s or in Texas in the early 1980s we can have in China some sectors being in recession or having even crashes and other sectors and other provinces still growing so this is an important point to consider but overall I think that the growth rate we had in the last ten years which was around 10 percent 12 percent annually that this is going to slow down considerably and that at the present time in China and in the rest of Asia very little growth or no growth at all - in Bloomberg Radio Interview
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Marc Faber : The Stock Market Already Seen the Highs for 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 The Barron's roundtable

Marc Faber : Euro Equities better that Euros and Euro Bonds

Marc Faber : ....say you look at Spain Italy Portugal Greece , they were either at the 2009 lows or below the 2009 lows just recently , now they rallied somewhat but I think we seen a major low in the European markets we all know how bad the situation is it has been sufficiently documented and people analysts and strategists have now wasted one and half year time talking about the Euro will it break up not break up and so forth but in the meantime equities have become very very inexpensive because if you really think it through and you think of total disaster in Europe which would be the break up of the Euro as the media portrays it , I think that would be the best solution to get rid of the politicians and have again individual countries and a flexible exchange rate ...what is it better to be in the Euro in Euro denominated bonds or in equities ? I think equities are relatively more attractive - in Bloomberg Radio Interview
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Chinese Stock vs. European Equities

Marc Faber : “The [Chinese] growth rate we had in the last 10 years, which was around 10 percent annually, is going to slow down considerably.”
“I would rather wait to buy Chinese stocks until we see the result of the stimulus packages.” He added - in Bloomberg Radio Interview

Taiwan and South Korea Exports to understand the Real Chinese Statistics

Marc Faber : ...Well of course (I wouldn't trust the numbers coming out of the Chinese government) , I think this is a problem worldwide , I wouldn't trust the numbers coming out of the US either , but in general we have relatively reliable statistics about Chine coming from the outside and also inside in terms of physical production of goods and services so for instance Taiwan and South Korea these countries largest export markets are China by wide margin they are exporting to China as much as Europe and the US combined so if these countries exports are down year after year it tells you something about the Chinese economy then you look at the electricity production it was down in June and so forth and so on , so we have quite reliable statistics where we can essentially observe that there have been a very very significant slowdown in the Chinese economy , I am not saying the the Chinese economy is already in recession the way the rest of Asia , it is just not growing anymore at a very high level of business activity .... - in Bloomberg Radio Interview
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Marc Faber Warns a False Rally May Be Coming

Marc Faber : "We could go to 1450 or even 1500, " “we’re in the late stage of a mature market and not a new bull.” - in CNBC blog

Mark Faber - Financial Survival Is About Diversification

Marc Faber on the financial survival network with Kerry Lutz - August 16, 2012 : Survive Economic Calamity in 2013 : "A very big economic shoe is going to drop".

Inflation has killed the middle class and provided a windfall to Wall Street. The financial sector has outgrown the real economy substantially over the past 30 years. The financial sector no longer exists to allocate capital but rather to act as the "house" in the largest casino that the world has ever known. This means that over time the sector will revert to the mean, which means that it is due for a large deflation. This means that geographical diversification is essential to preserving wealth. Real estate has a money-laundering component that makes it a magnet for black market income around the world. People don't trust the market any longer. Corzine and others have completely undermined the credibility of the system. And the debt collapse could occur at any time

MARC FABER: 2013 Will Be A Difficult Year For Equities

LEE: AND THEN WILL THE MARKETS BOUNCE ON QE3 OR 4 OR IS THAT TRADE OVER?

 MARC FABER: PROBABLY IT WILL BOUNCE BUT WE MAY HAVE SEEN KIND OF THE HIGH FOR THE YEAR. MAYBE WE MAKE A MARGINAL NEW HIGH AND THEN WE DROP AGAIN. BUT I THINK 2013 WILL BE A DIFFICULT YEAR FOR EQUITIES.

- in CNBC Interview 16 Aug 2012
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Marc Faber: S&P to Drop 10%, Sparking QE3

MARC FABER: WELL BASICALLY WE HAD QUITE A STRONG RALLY FROM A LOW OF 1266 IN JUNE WE ARE UP NOW TO ESSENTIALLY OVER 1400. SO WE HAVE A STRONG RALLY. THE RALLY WASN’T CONVINCING IN TERMS OF NEW HIGHS AND IN TERMS OF VOLUME BUT NEVER THE LESS WE HAVE THIS RALLY I THINK IN THE LAST FEW DAYS THE MARKET HAS TRADED AS IS THE CASE FOR GOLD IN A VERY NARROW RANGE. AND I THINK THE MARKET IS GOING BREAK OUT OF THIS RANGE. MY GUESS WOULD BE ON THE DOWNSIDE AND NOT ON THE UPSIDE BECAUSE THE MARKET IS ALREADY OVERBOARD HERE SO THAT’S WHERE I STAND. NOW HOW LOW WILL WE GO? I THINK IF THE MARKET DROPS 150 POINTS ON THE S&P WE WILL HAVE QE3 & 4.

Marc Faber : China Economy to Slow Considerably

“The growth rate we had in the last 10 years, which was around 10 percent annually, is going to slow down considerably,” “I would rather wait to buy Chinese stocks until we see the result of the stimulus packages.” Marc Faber told Tom Keene and Ken Prewitt in a “Bloomberg Surveillance” radio interview yesterday. - in Bloomberg Radio Interview
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Marc Faber on Bloomberg Radio August 13, 2012

Marc Faber on Bloomberg Radio August 13, 2012 : “The growth rate we had in the last 10 years, which was around 10 percent annually, is going to slow down considerably,” ” radio interview today. “I would rather wait to buy Chinese stocks until we see the result of the stimulus packages.” Marc Faber told Tom Keene and Ken Prewitt in a “Bloomberg Surveillance

MARC FABER on Current and Future Asset Bubbles

EB: With more monetary easing by central banks around the world – where do you think valuation will be skewed? Which stock markets are going to be most prone to ‘bubble-like’ characteristics?
MARC FABER : Given that given that zero interest rates are in the US in nominal terms and if I take say a more realistic view of cost of living increases. Last week, NY taxi prices went up 19%. If I consider that, I think that US stocks may for the time-being actually rally but I have doubts that they will rally above the highs at 1422 we saw in April of this year on the S&P.
I think that it’s possible that the US may rally as the whole world thinks that the US has natural gas and there will be a re-industrialisation in America. The mood amongst international investors is that the US is the least bad choice.
I’ve always said if you give me the choice to buy a 10 year treasury at the yield of 1.5% or Johnson&Johnson, I’d rather buy Johnson&Johnson with a ten-year view. But as I said, if I look at all the options that I now have, I can see that European stocks are now terribly depressed.
I still own Asian shares and again the reason I own them is we have next to zero deposit rates and my portfolio of Asian shares has an average yield of say 5-6%. If I look at my investments, I think that they might go down 30% but I don’t think there will be massive dividend cuts – some here and there but not across the entire portfolio.
I still keep a lot of cash because if the markets drop another 30% - which I hope they will do – I will then invest in equities. - in citywire

Marc Faber: European Stocks a Great Investment Now

Marc Faber: ...what have happened is now the US market relatively high with 1400 and we were in June 4th at 1266 and the low last October 1074 so we had a very strong rally whereas in Italy Portugal France Spain Greece the markets are near the 2009 low that would be equivalent on the S&P 666 or they are below these low and so for the first time in my life I have been buying some European shares ...

Marc Faber Warns The Australians : Tough Times Ahead

Noted international contrarian Marc Faber has turned his gaze of doom on Australia, warning of tough times ahead for the nation as China slows faster than expected and the domestic “housing bubble” bursts.
In an exclusive interview with The Australian, Dr Faber — the editor and publisher of the The Gloom, Boom & Doom Report — warned that a downturn in commodity prices as China slowed would have damaging consequences for the mining industry and economy of Australia.
Full Story: Dr Doom warns of tough times – theaustralian.com.au

Marc Faber – You are Losing Money Right With Negative Interest Rates

Marc Faber : We have negative real interest rates practically everywhere. So if people keep their money on deposits, they are losing out in terms of purchasing power. - in CNBC TV 18

Marc Faber : A Possible 20% Decline in the Market after The Election

Q: Would you be a seller in the strength over the next few weeks and do you see the levels of the June lows that you alluded to being broken in the September to November phase?

Marc Faber : Yes, I think these lows could be exceeded and that it maybe October-November or after the US election we could have essentially a decline of around 20% in the market.


- in CNBC TV18
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Marc Faber outlook for India

Q: How about India which is pretty much in the same kind of description that you outlined which is that macro is weak, fundamentals are not great, but liquidity is keeping stock prices higher. Do you see it continuing that way in the foreseeable future?

Marc Faber : Yes, I think we can also rebound here somewhat. But I would use essentially strength in Asian emerging markets that have actually and India is not in that category, but say Indonesia, Philippines, Thailand have performed very well over the last 12 months. So I would use strength here as an opportunity to lighten up on positions. But it all depends on each individual investor. If someone has all his money in equities I would be aggressive seller at this level and on any rebound and if someone has only 20% in equities I wouldn’t worry about that. My approach is to have a diversified portfolio at this stage. - in CNBC TV18
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Marc Faber : Owning Physical Gold is an Insurance , an absolute necessity

Q: What's your view on gold right now?

Marc Faber : This is a controversial subject because some people think it’s a bubble. My view is it’s not a bubble but it’s obviously at the fair price. I think we can still move up somewhat, maybe another 10-20% in the next six months and then we will have to see. But I believe that investors will be faced with more and more regulation and scrutiny and that to own some physical gold is an insurance that is an absolute necessity.
- in CNBC TV18
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Marc Faber: Obama, Romney Are Undesirable Candidates for Fixing the Economy

Marc Faber: well I mean to tell you the truth , if you put a gun on my head and you tell me you must chose either Mr Obama or Mr Romney I'd say please shoot
I think both are undesirable , one is basically buying votes by distributing money through all kinds of subsidies as you know , now almost half of the households in America have one member that receives some subsidy by the government either food stamp or social security or God knows what , so Mr Obama is a big time spender at the same time you have Mr Romney he will also be a big time spender but less on social programs and more on the military and the deficit , people talk about the fiscal cliff , they have no clue there is not going to be a fiscal cliff it's the fiscal grand canyon , endless .....

MARC FABER : The S&P 500 Could Soar To 1,500 Before Collapsing

Marc Faber : In the near term, I believe that markets can still rally somewhat for the simple reason that in every market, you have a few strong stocks, and they are breaking out on the upside. Then, you have a lot of stocks that are down 40 or 50 percent and are very oversold, so they can also rebound…
I think that we may still rally somewhat into August – mid-August, end of August – and then probably we'll have a tougher second half. In other words, September, October, and November could be somewhat tougher months...
The high was this year on April 4 at 1422. I think it's possible, based on the few stocks that are strong and the rebound candidates, that we will exceed that high – maybe move to 1450 or even 1500.
"I think these lows could be exceeded and I think it may be October or November – or after the U.S. election – we could essentially have a decline of around 20 percent in the market." - in CNBC TV18
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Marc Faber : European Shares are a Great Investment

Q: Do you think the euro has seen its low against the dollar for the near-term or do you see the weakness coming back there?

Marc Faber : Yes, for the near-term probably and probably for the wrong reasons. But the one thing I want to say about Europe, for the first time in my life I have been buying some European shares, because if you look at the markets of Portugal, Spain, Italy, France, Greece they are either below the 2009 lows that would be the equivalent on the S&P at 666 or they are approaching these lows. So you have a lot of reasonably good companies that are very, very inexpensive and as a contrarian I think that there is some value in some of these companies.  - in CNBC TV18
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Marc Faber : The Global Economy Slowing Down

Marc Faber : The high was this year on April 4 at 1422. I think it's possible, based on the few stocks that are strong and the rebound candidates, we will exceed that high. That maybe we move to 1450 or even 1500. But the difficulty at the present time is you have ousted expansionary monetary policies, zero interest rates in real terms and you have a slowdown in the global economy. At the present time in Asia, we have practically no growth. In Europe, we are in recession. In the US, there is very little growth. So you are, on the one hand, faced with a lot of incoming liquidity created by central banks and on the second hand you have essentially a global economy that is slowing down where corporate profits will rather disappoint than exceed expectations. - in CNBC TV18
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Marc Faber - CNBC TV 18 - 06 Aug 2012

Marc Faber - CNBC TV 18 - 06 Aug 2012

Marc Faber : "In the near-term, I believe that markets can still rally somewhat for the simple reason that in every market you have a few strong stocks and they are breaking out on the upside. And then you have a lot of stocks that are down 40-50% and very oversold, so they can also rebound. We have a lot of liquidity in the world that has been created essentially by central bankers. We have negative real interest rates practically everywhere. So if people keep their money on deposits, they are losing out in terms of purchasing power. The sentiment among investors, at the beginning of June, was very negative when the S&P bottomed out. So I think that we may still rally somewhat into August -- mid-August, end of August and then probably will have a tougher second half. In other words, September-October-November could be somewhat tougher months."

Marc Faber : Market to Rally in Aug, but tough road thereafter

Marc Faber on CNBC TV 18 - 06 Aug 2012 : "In the near-term, I believe that markets can still rally somewhat for the simple reason that in every market you have a few strong stocks and they are breaking out on the upside. And then you have a lot of stocks that are down 40-50% and very oversold, so they can also rebound. We have a lot of liquidity in the world that has been created essentially by central bankers.
We have negative real interest rates practically everywhere. So if people keep their money on deposits, they are losing out in terms of purchasing power. The sentiment among investors, at the beginning of June, was very negative when the S&P bottomed out. So I think that we may still rally somewhat into August -- mid-August, end of August and then probably will have a tougher second half. In other words, September-October-November could be somewhat tougher months."

Marc Faber : Copper Zinc & other Raw materials still provide Opportunities

Marc Faber : “Markets are very volatile and requires a lot of courage to borrow short position,” “I do not wanna be” short “in terms of copper because its price can be manipulated, because there are so many players in this market.” “Oil, copper and gold prices rose on Friday after the GDP growth in China for the second quarter from 7.6% expectations and hopes for that government will continue to lower interest rates to stimulate the economy. “I think investors should realize that the effect of the slowdown in China, which I think is much greater than what the Government reported, talked about quite a weak economy,” said Faber. - in a recent interview with CNBC

Marc Faber : US GDP Growth is Insignificant

Marc Faber : In the US, growth has slowed down and it is insignificant in my opinion. The growth is insignificant. The statistics are published by governments and government agencies. I don’t believe that the US economy is growing much at the present time. The way that GDP is calculated is that you put in some figures about sales and production and then you deduct the inflation rate which they calculate. But if you took unofficial costs of living increases, then I would guess that there is no growth because rents nationwide, for residential rates, the rates have gone up by 9%. Insurance premiums are going up and healthcare rates are going up and if you look at employment it is a disaster. In the meantime, the government is essentially throwing $1.3 billion at the economy annually through the budget deficit and through the household deficit. Without these payments by the government, I think there would actually be actually negative economic growth. - in citywire

Marc Faber : Buy Real Estate for Cash

Marc Faber : I would Buy (Real Estate) for Cash , you understand my view is this , I think investors over the last thirty years certainly since the low of the stock market in august 1982 when the Dow Jones was at 800 , I have become accustomed at asset crisis whether it is real estate or equities or bonds always go up and I think we are in a period which it will end and I do not know when it will happen whether it happens tomorrow or in five years or in ten years but at some stage there will be a huge wealth destruction now as an investor , of course I have also long positions in equities not so much actually hardly in the US but equities here in Asia I have real estate in Asia and I have some cash and bonds and of course a large position in gold but basically I believe that we have to start to think what will protect us best from a complete wealth destruction in other words if the credit bubble really burst and everything collapses what is relatively safe , so I look at say , I was in Atlanta and I was in Phoenix , I look at homes they're selling say 70% below construction cost , yes they can still go down in value and may be they will but all I am saying is in a complete collapse they'll still have some value because people will have to live somewhere they won't be all empty where as equities and bonds who knows ? may be a lot of bonds will default and will pay you back in money that is worthless that's the real threat say in the United States , the US will always be able to print money and so if you buy a treasury for sure you get the money back the question is what will the value of that money be ? because as you may know Janet Yellen another genius that is at the federal reserve vice chairman she said it is possible we would take interest rates into negative territory I would be voting for that , well interest rates are negative inflation adjusted , your inflation is I think between five and ten percent per annum

Marc Faber : in a Bubble everybody will be right and wrong at some point

Marc Faber : we have had bubble economies for the last fifteen years first the NASDAQ bubble then the housing bubble then we had the commodities bubble in 2008 then we had emerging markets bubble and so forth ...and in a Bubble everybody will be right and wrong at some point in other words the bulls on equities they have been wrong essentially since 2007 but one day they'll be right and the bears on bonds have been wrong but at some point they will be right because interest rate at some point will rise again so this is a very challenging investment environment where you can't be overly dogmatic in other words from time to time you have to make major allocation shifts or you take the view that we all don't know what the future holds and then you diversify with some money in gold and some money in bonds and some money in stocks and some money in real estate - in The Money and Wealth Show
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Marc Faber : Gold Bubble is Nonsense

Marc Faber : “Talk of a gold bubble is nonsense,” “There is no sign of the price surge you saw with the Nasdaq bubble or oil stocks in the late 70s, or the jump in the gold price from $380 an ounce to $800 between November 1979 and February 1980.” Marc Faber said Wednesday during the Agora Financial conference in Vancouver