Diversification : Equities , Bonds , Real Estate , Gold and Silver

 "I would be diversified - some money in equities, some in bonds, some in real estate and some in gold and silver."


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : we are basically Buying Equities today on the greater fool theory, that someone will pay a much higher price for these Equities

David McAlvany : I don’t know if history can help us, but with the Treasury market essentially being a rigged market today, perhaps that can continue for some time.
Marc Faber : Yes, it’s like the NASDAQ bubble went up more than most people would have expected, or the NIKKEI in 1987-1989 went up more than most people expected, but when it eventually broke, the pain was substantial. I don’t know when the market will peak out. All I am saying is that we are basically buying equities today on the greater fool theory, that someone will pay a much higher price for these equities.
- in a recent interview with McAlvany
Click here to watch the full interview >>>>>>

One cannot be overly optimistic about Equities

Marc Faber : well, I don't know. I think that in general one of the reasons one cannot be overly optimistic about equities is if you go back to the period 1982 when the market bottomed out in august '82 up to year 2000, investors kind of worldwide trusted the regulators, they trusted the system and they were enthusiastic about owning equities. over the last ten years, the mood has changed a lot. investors and individuals in particular don't trust management anymore they are upset about executive compensation and they have low view of that. they are upset about the regulators. they think the markets are rigged. they are upset about rating agencies. there is a mistrust in paper. i think a lot of individuals will not come back to the share market and on rebounds they will reduce their positions. - in CNBC

I am not that negative about Equities

Marc Faber : “I’m not that negative about equities,” “If you’re bearish about the world, you’ll probably be better off in equities than in government bonds and cash.” - in ibtimes.com

Marc Faber : we have abysmal performance of equities in the last ten years

Marc Faber : Well, basically, I mean, I would say we look at different asset classes. So we cash, we have government bonds, we have corporate bonds, we have real estate, we have equities and we have commodities and precious metals. And so the question is, you know, where do you put your money if you and I go away to an island or to jail for ten years and we can’t make any transactions and we come back in ten years’ time? I think if the objective is the maintenance of purchasing power, in other words, you just don’t want to wake up in ten years’ time when you come out of jail and what you have is worthless, then I would say that probably gold is the best alternative. If the question is how do you maximize profit, probably there may be more profit in equities because, you know, we have abysmal performance of equities in the last ten years. And particularly in the US, as a result of the decline in the value of the US dollar, equities would seem to me to be not particularly expensive. I think what would be dangerous for you and me would be to put all our money in US dollar cash and in US government bonds for ten years and then come back and maybe find out that we can buy with a hundred thousand dollars just a cup of coffee -- or not even that.

Marc Faber : we need a shake out both for commodities and for equities

Dr Marc Faber asked by Carol Massar of Bloomberg TV in New York 25 May 2011 about what we are seeing in equities right now ? Marc Faber: "...well I think we had huge move (in equities) from march 2009 lows and then we made an intermediate peak in April 2010 and then we had a big correction in July first 2010 and since then the S&P rose from 1010 to a peak of 1370 the other day and so basically we had from the low in last July a rise of 35 percent and I think we need a correction period for these markets and we need a shake out both for commodities and for equities , and I think , people always ask why is the market is going up and why is the market going down and frequently you will know later on , I happen to think that the global economy is slowing down meaningfully at the present time and that earnings estimates are by in large too optimistic and that we will also have significant geopolitical problems in the world "

Marc Faber : you will be better off in equities and commodities than in government bonds and cash

Marc Faber : ..."...I am very negative about the world, because I think that what caused the crisis in 2008 was excessive credit growth, excessive leverage in the system, and now the private sector is deleveraging, but governments are printing money, and through huge fiscal deficits are creating even more debt growth. So in other words, what killed the economy is now being applied to revive the economy, and I think this will lead to a disaster. But if you think it through and you believe in the disaster scenario I’m envisioning, then you will be better off in equities and in commodities than in government bonds and cash....."
in  www.bbc.co.uk

Marc Faber : Money will flow into Equities and Commodities at least over the next couple of weeks,

In a phone interview from Thailand Marc Faber told Bloomberg that : "It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US,"

"Money will flow into equities at least over the next couple of weeks, and into commodities," Faber added.

"Over the last two years we eased massively in the US and where did the growth take place? In Asia".

"So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" he asked.

"No! they will build factories in Asia and hire people in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber explained.

Click Here to watch The Interview>>>

Marc Faber : Printing will Create the Final Crisis

Marc Faber CNBC Interview 03 Aug 2010

Marc Faber : “Investors should’ve listened to me already six months ago, when I wrote that the Fed will continue to monetize, and this is my view , they will never let up ? ... they will print and print and print, until the final crisis wipes out the entire system,” Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, told CNBC. David Bloom from HSBC joined the discussion, adding, "I think we're not quite at those draconian points."
Marc Faber continues : "they are very bad forecasters of economic events , in particular that was the case for mister Greenspan , but Mister Bernanke is in the same boat , he has no clue what the economy's doing , and so they misread in 2007 the severity of the forthcoming crisis and then they misread in the last few months the strength of the economy which is unlike your commentator before just said shows no sign of strengthening but signs of of weakening everywhere in the world and therefor I would argue that the federal reserve with its policy and with the writings and papers mister Bernanke has published about the great depression that more quantitative easing will be forthcoming , and significantly more...."
Marc Faber continues : well i think that everybody in the world has concerns about the ultimate value of the US dollar and also obviously about the value of the US government bonds because if the fiscal deficit stays at this level , in my opinion they are actually going to increase overtime and obviously you will have a credit problem in the United States soon or late , it is not gonna happen in the next three years but thereafter , so I think that diversification out of the US dollar treasuries is desirable and that's why I am not all that negative about Equities , i think that if you look at the different investment alternatives Equities bonds real estate commodities and precious metals , I think that equities should be presented in a portfolio ...in particular if you are very bearish about the world in the long term , you probably be better off in equities than in bonds ......

Marc Faber : the U.S. will go to war in the next 10 years or so

Marc Faber does expect a Banking crisis for this year but in the next five to ten years ..."you see we had a financial crisis basically the financial system went bust , but it was bailed out by the government , the next time when the train stops is when the government goes bankrupt , and that day I really look forward when the government goes bankrupt because that really what they deserve..." says Marc Faber , Marc Faber believes that the US will go to war (in the next ten years or so ) regardless against whom cause the US has always been good at finding foreign enemies somewhere , Marc Faber also predicts that the US may stop paying the bonds to foreigners especially in case of war

Marc Faber on Money gold, commodities and equities

Bearish About Everything, But Quite Happy to Hold Physical Gold
Marc Faber, the legendary investor and the author of Gloom, Boom & Doom Report shares his outlook on various asset classes including gold, agri-commodities and equities.
Marc Faber : "In my view, the Federal Reserve has effectively demonstrated it is willing to risk hyperinflation in order to beat back the deflationary forces."
"Stocks could go up and the economy can deteriorate...Government official should stay out of the economy... Mr. Obama and his clowns around him don't understand... they're going to destroy the economy."
“It’s a race in the purchasing power of paper money to the bottom, and the only assets that will, for sure, keep their purchasing power are precious metals.”
“In the long term, as I always said, we are all doomed, but in the meantime, because of the volatility in the markets, you can make money. The key is to know when to stop, and when you stop, how and where to allocate assets.”

Marc Faber One-on-One Interview - The Mangru Report May 01, 2010

Marc Faber reveals for the first time his unique collection of Mao Zedong artifacts.

Marc Faber :"I do not think that China is a currency manipulator for the simple that China fixed its exchange rate in 1994 against the US Dollar at 1USD = 8.28 RMBs but after 2000 when the US implemented ultra expendituary monetary policies that led to the credit bubble and the housing boom that is non productive but it boosted US consumption above the trend line and a symptom of this over consumption was then the escalation of the trade deficit "
"In my opinion any import duty on Chinese goods will rather be negative for the United States than anything else because according to the trade minister in China 60% of exports from China to the US are actually from multinational companies that have subsidiaries in china , I do not think it is 60% but say at least between 40% to 50% of Chinese exports to the US are manufactured by subsidiaries of multinationals in particular American companies and what it will also do is increase the cost to the US consumer "
"It is very important to understand that the US economic policies and that have been a problem for the United States over the last 25 to 30 years that it has been geared towards stimulating consumption and not geared towards stimulating what I call capital formation , capital formation is capital spending on equipment and infrastructure on education on research and development and on innovation , I think that stimulus in the US is misguided because it always tells the consumer go and spend more when what they should do is actually to save more and to invest in productive capacities "
"well basically cash is not attractive because under Bernanke monetary policies interest rates will stay at zero or below zero in real terms for ever in other words what you could have is essentially one day a FED fund rate of 5% or 10% but by then inflation will be say 10 percent or 15 percent or 20 percent so in real terms by holding cash and US government bonds for sure in the long run you are bound to lose money , so what's next what do people do with the rest of the money if bonds and cash are undesirable they will buy real estate or commodities or equities , now for many people the real estate market is not particularly atractive because A they are already overweight in real estate and under water so they are not going to buy real estate but in equities there is a lot of money that can flow in because that money can come out of money market funds and it could come out of bonds funds and so the equity market could actually surprise on the upside before the next bubble forms and then you have the next collapse which then brings up another even bigger crisis"
Dan Mangru interviews Dr. Marc Faber (author of the Gloom, Boom, and Doom Report) on everything from China currency manipulation, import taxes, interest rates, stimulus, healthcare, and his collection of Mao Zedong artifacts.

Marc Faber Dollar will go to value Zero in a maximum of ten years

Marc Faber : Bernanke is a good money printer and we should give him a medal for that

Marc Faber, publisher of the Gloom, Boom & Doom Report, reveals his views on the inflation/deflation, of the US dollar. Marc says, cash and treasury bond will lose and the winners will be foreign currency and commodities. Equities have some power to hedge inflation
“There is this huge debate between the deflationists and the inflationists. The deflationists believe that the DOW will fall to 4,000 and the S&P to 400 and that bonds will rally and that we will have widespread deflation like in the 1930’s. I belong more to the camp that looks more at inflation and deflation from a different perspective in the sense that in every system you can have some prices going down and some prices going up. Say if you have a glut in consumer goods then consumer good prices can go down. But if you print money and have a zero interest rate, then home prices theoretically could go up or if they don’t go up then stock prices can go up or commodities prices can go up. But in any event, your cash purchasing power diminishes over time, like the U.S. dollar [which] is weak. That’s a symptom of inflation…to have deflation in a system you would have to have a strong currency.”says Marc Faber


Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.

Marc Faber : bullish on Japan and believes Gold can in general outperform Equities

The two perma-Bears Marc Faber and Mish Shedlock are both bullish on Japan

Marc Faber, editor of the Gloom, Boom and Doom Report. : we had more than 20 years bear market in Japan , and valuations compared to interest rates are low and I really feel that , that is a market that have been totally neglected , ten years ago and twenty years ago people were always rushing to Japanese stocks , now there is practically no interest says Marc Faber , but i like to mention one other point where I disagree with Mish , is that I do not think we will see another 666 on the S&P 500 ever again , if we go down by let's say 10-20% on the S&P 500, our money printer Ben Bernanke will flood the market with liquidity , so what will happen is that the dollar weakens again and thereby driving up stock prices. "I think that gold can in general outperform equities " Marc Faber added

Gold is my favorite currency Marc Faber

Equities and Gold Marc Faber Investments for 2010

In equities though, investors seem to be obsessed with “what the stock market will do” because they focus almost entirely on stock market indices. There is a possibility that equity markets will move, in 2010 and thereafter, into a volatile trading range as was the case in the 1970s. The point I wish to make is that good stock selection is at least as important as, or even more important than, “guessing” where the markets will go. Even in recessions and down-markets, some companies can continue to thrive.

I think it is important to understand that in emerging economies, where markets are far from being saturated, companies that execute well can continue to grow even in a poor economic climate. So, investors should focus on identifying well-run and promising companies, and fund managers who are conservative, disciplined, and focused.
The love for gold
I am not a perennial gold bug. But, when governments spend far more than they collect in taxes (large fiscal deficits), and when central bankers engage in reckless monetary policies and, instead of treating the causes of the problems (excessive debt growth), treat the symptoms (deflationary forces), gold as a currency does make a lot of sense. I need to clarify one point. When gold recently broke out on the upside above $1,000 per ounce I maintained that, whereas in the past the $1,000 level had been an area of resistance, with gold now above $1,000 it had become an area of support. I also said that if gold failed to hold above $1,000, I would become extremely concerned; and that in such a case a sell-off to $800 could not be ruled out, as failed breakout moves can lead to violent counter-movements. My feeling is that gold will hold above $1,000 and will trend higher over time. In fact, the breakout move of gold above $1,000 could be as significant as the decisive breakout move of the Dow Jones above the 1,000 level in early 1983.
in www.business-standard.com
Dr. Marc Faber also known as Dr Doom is an investment advisor, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
he became well known for advising his clients to get out of the stock market one week before the October 1987 crash. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"

Gold, Equities,credit, inflation, Bonds And The US Dollar

Money printing, debt growth and deficits don't create prosperity, says Marc Faber

“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber says.
"In the period, 2001 -2007, the Fed managed to do something that had never before been done - create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing - you name it; it went up. The only thing that didn't go up was the dollar," Faber said.
"Bubbles had been localized in the past," Faber explained. "A bubble in one area drew investment from another area. In one market, prices soared. In another they slumped. Overall, things didn't change much."
Read Article>>>

Cash as Risky as Commodities Equities and Real Estate Marc Faber on Bloomberg News 26 Oct 2009

Marc Faber on Bloomberg Television Risky Cash

Cash as Risky as Commodities Equities and Real Estate Marc Faber on Bloomberg News 26 Oct 2009 .Analysis and discussion with Editor and Publisher of Gloom, Boom and Doom Report Marc Faber; To hold cash today is a risky as holding equities, commodities or real estate; Weak U.S. dollar is a symptom of inflation. (Bloomberg News >


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