Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 29, 2012
Gold is not bubble
According to Marc Faber gold is not in a bubble. He believes that It wasn’t in a bubble also in 1973, either, but it still corrected by 40% back in that period. He is not even sure it's near a bubble ... Marc points out that in a bubble the majority of people and investors are not only invested but overinvested in a specific asset. Still Marc mentions that there was a bubble in 1979–1980, when the whole world was trading buying and selling gold 24-hours a day,worldwide. Today less than 1.5% of all assets are invested in gold and the public is under invested.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 22, 2012
Marc Faber: We may have huge correction within the next three months
As we know Marc Faber has been recommending for quite some time that people keep about 25% of their portfolio in equities. Yesterday the publisher of the
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
Gloom Boom and Doom
report stated that even though he is not completely out of the stock market he believes that we may have a huge correction coming in the next three months. So he is warning about the possibility of market losses soon.
Marc Faber and now his “Love” for Central Bankers
Basically the U.S. had a significant increase in the average household income in real terms from the late 1940s to essentially the mid-1960s. And, then inflation began to bite and real income growth slowed down. Then came the 1980s and in order not to disappoint the household income recipients you essentially printed money and had a huge debt expansion.
So if you have an economic system and you suddenly grow your debt at a very high rate, it's like an injection of a stimulant of steroids. So the economy grew at a relatively fast pace, but built on additional debt. And this obviously cannot go on forever and when it comes to an end, you have a problem. But the Fed had never paid any attention.
The Fed is about the worst economic forecaster you can imagine. They are academics. They never go to a local pub. They never go shopping -- or they lie. But basically they are a bunch of people who never worked a single day in their lives. They’re not businessmen that have to balance the books, earn some money by selling goods, and paying the expenditures. They get paid by the government. And so these people have no clue about the economy.
And, so what happens is they never paid any attention to excessive credit growth -- and let me remind you, between 2000 and 2007, credit growth was five times the growth of the economy in nominal terms. In other words, in order to create one dollar of GDP, you had to borrow another five dollars from the credit market. Now this came to an end in 2008.
Now the Fed never having paid any attention to credit growth, they realized if we have a credit-addicted economy and credit growth slows down we have to print money. So that’s what they did. But believe me it doesn’t take a rocket scientist to see that if you print money you don’t create prosperity. Otherwise, every country would be unbelievably rich because every country would print money and be happy thereafter.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
So if you have an economic system and you suddenly grow your debt at a very high rate, it's like an injection of a stimulant of steroids. So the economy grew at a relatively fast pace, but built on additional debt. And this obviously cannot go on forever and when it comes to an end, you have a problem. But the Fed had never paid any attention.
The Fed is about the worst economic forecaster you can imagine. They are academics. They never go to a local pub. They never go shopping -- or they lie. But basically they are a bunch of people who never worked a single day in their lives. They’re not businessmen that have to balance the books, earn some money by selling goods, and paying the expenditures. They get paid by the government. And so these people have no clue about the economy.
And, so what happens is they never paid any attention to excessive credit growth -- and let me remind you, between 2000 and 2007, credit growth was five times the growth of the economy in nominal terms. In other words, in order to create one dollar of GDP, you had to borrow another five dollars from the credit market. Now this came to an end in 2008.
Now the Fed never having paid any attention to credit growth, they realized if we have a credit-addicted economy and credit growth slows down we have to print money. So that’s what they did. But believe me it doesn’t take a rocket scientist to see that if you print money you don’t create prosperity. Otherwise, every country would be unbelievably rich because every country would print money and be happy thereafter.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 21, 2012
The Perils Of Money Printing`s Unintended Consequences
March 18, 2012
Marc Faber Blog and the Money Printing’s Unintended Consequences
Not only Marc Faber is worried about the coming inflation due to gigantic money printing in many developed countries, but now it seems that he is worried also about building bubbles in many assets. The problem with that is when these bubbles burst they lead to social havoc. That’s why Marc Faber is defensive these days. He has expressed his caution about the stock market recently due to the huge non-stop rally that developed.
Marc Faber doesn’t believe central banks will revert their purchases of bad assets and comments on inflation:
“First of all, I do not believe that the central banks around the world will ever, and I repeat ever, reduce their balance sheets. They’ve gone the path of money printing and once you choose that path you’re in it, and you have to print more money.
If you start to print, it has the biggest impact. Then you print more - it has a lesser impact unless you increase the rate of money printing very significantly. And, the third money printing has even less impact. And the problem is like the Fed: they printed money because they wanted to lift the housing market, but the housing market is the only asset that didn’t go up substantially.
In general, I think that the purchasing power of money has diminished very significantly over the last ten, twenty, thirty years, and will continue to do so. So by being in cash and government bonds is not a protection against this depreciation in the value of money”.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
Marc Faber doesn’t believe central banks will revert their purchases of bad assets and comments on inflation:
“First of all, I do not believe that the central banks around the world will ever, and I repeat ever, reduce their balance sheets. They’ve gone the path of money printing and once you choose that path you’re in it, and you have to print more money.
If you start to print, it has the biggest impact. Then you print more - it has a lesser impact unless you increase the rate of money printing very significantly. And, the third money printing has even less impact. And the problem is like the Fed: they printed money because they wanted to lift the housing market, but the housing market is the only asset that didn’t go up substantially.
In general, I think that the purchasing power of money has diminished very significantly over the last ten, twenty, thirty years, and will continue to do so. So by being in cash and government bonds is not a protection against this depreciation in the value of money”.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 16, 2012
Marc Faber: Equities might correct
Right now, for the next one or two months, I don't think that stocks will go up a lot.
I personally think they will correct.
But long term, I still like Asia. My concern is if the Chinese economy slows down meaningfully that we could have economic weakness spreading around Asia as well, as well as in countries that supply commodities to China, like Australia, Brazil, Argentina, and so forth.
Right now, say for the next two months, I'm very cautious. - in a recent interview with oilprice.com
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
I personally think they will correct.
But long term, I still like Asia. My concern is if the Chinese economy slows down meaningfully that we could have economic weakness spreading around Asia as well, as well as in countries that supply commodities to China, like Australia, Brazil, Argentina, and so forth.
Right now, say for the next two months, I'm very cautious. - in a recent interview with oilprice.com
March 13, 2012
Gold: There`s Significant Support Around 1500, But It Could Drop Lower
All I'm saying is that, in my opinion, the gold price correction is not yet entirely completed. I see significant support around the $1,500 USD/oz level, but it could drop even lower.
We could have a big correction if global liquidity tightens or they stop printing money said
We could have a big correction if global liquidity tightens or they stop printing money said
Marc Faber
in the Middle East Investment summit, Dubai.Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 11, 2012
Marc Faber: Chinese Government Statistics Are Fake
Marc Faber gave an interview to Abu Dhabi based Alarabiya TV where the editor and publisher of the Gloom Boom and Doom report said that China has no growth right now. Chinese government statistics are fake and if Chinese economy slows down more they will print more. Chinese government economic figures are meaningless, because they are manipulated, which confirms that there is no economic growth in China this year in fact China’s production of steel, cement and electricity as well as the volume of its exports and car sales are stable or declining compared to last year, which is incompatible with the growth announced by the government Marc said. China is headed towards a slowdown.
Marc Faber confirmed the 25% hike in the S&P in October and November last year happened despite a very low trading. I am watching the markets right now and not doing anything, I think the markets should correct, I believe investors should not hold 100% of their assets in paper.
Regarding Gold . Marc Faber says : Gold is in a long term correction, the Euro will be saved but not all the Eurozone countries will be a part for the EU, some of them will be evicted and will be in big trouble because of their currencies.
Note: The Video Embedded Below is in Arabic Language.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
Marc Faber confirmed the 25% hike in the S&P in October and November last year happened despite a very low trading. I am watching the markets right now and not doing anything, I think the markets should correct, I believe investors should not hold 100% of their assets in paper.
Regarding Gold . Marc Faber says : Gold is in a long term correction, the Euro will be saved but not all the Eurozone countries will be a part for the EU, some of them will be evicted and will be in big trouble because of their currencies.
Note: The Video Embedded Below is in Arabic Language.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 07, 2012
Marc Faber: Buy Gold. Israel-Iran War Imminent
Investors should buy equity and gold as the only relatively good way to hedge against political risk and Middle Easy and a war between Iran and Israel said the Swiss money manager and long-term bear Marc Faber.
“I think sooner or later, the U.S. or Israel will strike Iran—it's almost inevitable" Faber, who publishes the widely read Gloom Boom and Doom Report, told Reuters on the sidelines of an investment conference.
If war breaks out in the Middle East, Bernanke will print more money as there will be no other option.
They need to finance a war. Because war doesn’t destroy corporations it is a good way to hedge.
Of course, investors must be able to live with volatility and must have cash.
"The Americans and the western powers know very well they cannot contain China economically... but one way to contain China is to switch on and switch off the oil tap from the Middle East," he said.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
“I think sooner or later, the U.S. or Israel will strike Iran—it's almost inevitable" Faber, who publishes the widely read Gloom Boom and Doom Report, told Reuters on the sidelines of an investment conference.
If war breaks out in the Middle East, Bernanke will print more money as there will be no other option.
They need to finance a war. Because war doesn’t destroy corporations it is a good way to hedge.
Of course, investors must be able to live with volatility and must have cash.
"The Americans and the western powers know very well they cannot contain China economically... but one way to contain China is to switch on and switch off the oil tap from the Middle East," he said.
March 06, 2012
Marc Faber 2012 – Markets are overbought, a Correction is coming
Markets are overbought, technically they have deteriorated, and we have very heavy insider selling, so I think a correction is coming.
About gold, He is not convinced that the correction, which began in early September with gold at $1920, is entirely complete. Marc continues to recommend a simple allocation to 4 asset classes: 25% gold, 25% equities, 25% real estate, 25% cash. He also expects higher volatility in the next few years.
Marc Faber the author of the Gloom, Boom & Doom Report said also that Bernanke will initiate Q3 only when the market goes down 10-15%. He believes that Q3 depends on the stock market (equity prices), and the price of oil, which is still high.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
About gold, He is not convinced that the correction, which began in early September with gold at $1920, is entirely complete. Marc continues to recommend a simple allocation to 4 asset classes: 25% gold, 25% equities, 25% real estate, 25% cash. He also expects higher volatility in the next few years.
Marc Faber the author of the Gloom, Boom & Doom Report said also that Bernanke will initiate Q3 only when the market goes down 10-15%. He believes that Q3 depends on the stock market (equity prices), and the price of oil, which is still high.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
March 02, 2012
Marc Faber: Government Will Seize Gold
Economist Marc Faber, publisher of The Gloom, Boom and Doom report, said the government will seize privately held gold but that doesn't stop him from buying gold. He prefers owning physical gold among all commodities. He advices Americans to store it outside the USA. He expects gold price to rise expotentially. Even though Mr Faber is staying out of commodities because he is worried that China will collapse, he buys physical gold every month.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
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