These are The Mining Stocks that Faber recommends...

Barron’s: Where in the world should we invest this year, Marc?

Marc Faber : If I could find a way to short central banks, that is what I would do. This is the year that people will lose confidence in central banks, mostly because of the failure of Abenomics in Japan. [Abenomics, the economic policies advocated by Japanese Prime Minister Shinzo Abe to reignite Japan’s economy, encompass monetary easing, fiscal stimulus, and structural reforms.] One way to short central banks is to go long gold. I recommend buying physical gold, silver, and platinum. If you are looking for bigger gains, I suggest either mining-company stocks or the Market Vectors Junior Gold Miners [GDXJ] exchange-traded fund. In last year’s first half, when gold rebounded by 15%, the Junior Gold Miners ETF rallied by more than 40%

Secondly, the U.S. market is expensive. Yet, the whole world seems to think it is the only game in town. That suggests it may be vulnerable to a selloff. I hate to short individual stocks because an activist could step in and send a stock soaring. Instead, I would short the SOX, or Philadelphia Semiconductor Index, through the iShares PHLX Semiconductor ETF [SOXX]. I would also short the Global X Social Media ETF [SOCL] and the iShares Nasdaq Biotechnology ETF [IBB].

While people think U.S. stocks are the only game in town, U.S. bonds are still attractive. Can someone on this panel explain to me why investors are bullish on the dollar, yet buy low-yielding European bonds instead of U.S. bonds? The market doesn’t believe the dollar will stay strong.






Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.

Gold & Silver Mining Stocks The Only Sector still attractive in The US Market

ET Now: US markets have been hitting record highs. Do you think that there is still some more steam left in US equities and if yes, which sectors do you like in US equities?

Marc Faber : In my view, there is only one sector that is particularly attractive and that is the mining sector. Gold and silver mining stocks are very depressed relative to the rates of the market and in absolute terms, in terms of valuations. So that sector is quite attractive.

I also think that coal shares have been oversold and they are now at a reasonably good value, but other than that, I do not see any particular value from a long-term perspective.

Now if you tell me that the market can go up another 10%, that may be the case, but it does not make for good value. Therefore if I look at the total return that I can expect from US shares over the next 5 to 10 years, it will be very disappointing. I would rather buy emerging market shares, which in terms of valuations are reasonably priced.

In the case of India, profit margins are at a historic low. So if there is an improvement in the economy and in the macroeconomic environment, corporate profit margins could expand.

Interest rates in India have a chance to come down at some point, which would be beneficial for corporate profits. So in general, I would rather invest in emerging economies than in the US from a long-term perspective. Now, as I said, if you tell me that the US market can go up another 10%, possibly it can then also drop 30%. - in ET Now July 2014

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.