Faber: The market may rise by 20% before the crash

Marc Faber, publisher of The Gloom, Boom & Doom Report, and known " bearish " investor attitudes, told CNBC, that massive speculative bubble of emergency liquidity is hanging over everything - from stocks and bonds to agricultural land and the virtual currency Bitcoin.

Faber says that the markets have reached record levels can rise even before the bubble burst , if you continue the program of the Federal Reserve massive bond purchases , as well as ultra-low interest rates.

"The market may rise by 20 % before the crash. Maybe more if you continue printing money, "said Faber.

He cautions investors that may see disappointing stock returns over the long term.
"Agricultural land has appreciated ten times in the last 10 years, and Bitcoin are up and who knows what are the limits," says Faber.


In recent interviews he predicted that European stocks will perform better than those of the U.S. and emerging markets.


Faber also believes that the credit boom in China puts the world in a worse situation than before the global financial crisis in 2008.

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.

Mark Faber Fears "Stocks Could Be Dead Money For A While" But "Gold Has Bottomed"

"Since September 2011's $1921 peak, gold has been in correction mode," Mark Faber tells Barrons in this brief clip, but the overhwleminly bearish sentiment combined with the major accumulation (most notably by China) means "gold prices have probably bottomed," and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that "stocks could be dead money for a while."

On Gold and Gold Miners:

Gold peaked at $1,921 an ounce in September 2011. Since then, it has been in a correction mode. Sentiment is bearish, but some countries are accumulating gold, notably China, which will buy an estimated 2,600 tons this year, exceeding annual production. Prices probably are bottoming.

Gold-mining shares aren't expensive either, although many exploration companies won't make it. If you buy the miners, look for companies that have raised capital already or have sufficient reserves. They are best-positioned to survive the next few years if there is no upturn in the gold price.

Full Barrons' Interview below:



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.

Faber: Apple could face bankruptcy

The famous investor Marc Faber believes that Apple is a problem the company that makes many " frivolous " products and therefore may be directed towards bankruptcy.

" Apple shares are those you are not interested ," Faber said in an interview quoted by Business Insider. " I'm not saying that they will sink , but may get there eventually ," said another prominent investor.

According to Marc Faber eventual fate of Apple has a similar example from the past.

" It's like a Polaroid of the 70s . Eventually she , like Apple, has been founded and led by renowned innovator who eventually left her," recalls Faber.

"Dr. Edwin Land, who is the founder of Polaroid, was the owner of more patents than any other in the world," said Marc Faber.

1982 Land left his seat on the Board of Directors of Polaroid, and subsequently dropped from his research position at the company. In 2001 and famous for its production of sunglasses company filed for bankruptcy protection and continue to sell its assets.

At present, Apple certainly is a far cry from the fate of Polaroid. The technology giant has current assets of $ 43 billion. Her only income in the second quarter of 2013 even reached $ 35 billion.

Faber argues that the technology industry is full of " tombstones " of ekspazarni leaders. "We and many other examples of high-tech companies that simply disappeared," said the investor.

According to Faber biggest issue of Apple is that its products are not suited to human needs.

" It's just a company that produces toys for grown-ups," said popular investor.

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: Growth in China is rather 4%

China's economy probably growing at an annual rate of 4 %, according to Marc Faber , known in the investment community with extremely negative outlook. " I told an economist , I believe that the second-largest economy is growing at a rate of 4 % per year, and he asked me, lest I mean rate of minus four percent ," said Faber to financial magazine CNBC. " I do not think that growth was negative in the amount of 4% , but must be included in the projection state of the credit market, which is at healthy levels ," says Faber. China's economy grew by 7.7% last year as projected on the side of growth this year of 7.5 %, according to government data. Big credit growth is one of the main risks to the growth of the Chinese economy , according to market observers. In recent months, the central bank of the country , apparently realized the problem, some efforts to address the poor state of the credit market. Contrary to the opinion expressed by Faber , retail , long-term investment and industrial production were better than expected. Faber motivate their negative expectations with other indicators, such as sales data with neighboring countries that might provide better information for the Chinese economy in the distorted statistics of the country. "You have to take into account other indicators that are more reliable , such as data export to countries like Taiwan and South Korea ," said Faber. Faber confirmed positive attitudes for gold, commenting that the precious metal is relatively cheap right now.

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 Warns "The Endgame Is a Total Collapse - But From a Higher Diving Board Now"

Marc Faber on taper: 

"My view was that they would taper by about $10 billion to $15 billion, but I'm not surprised that they don't do it for the simple reason that I think we are in QE unlimited. The people at the Fed are professors, academics. They never worked a single life in the business of ordinary people. And they don't understand that if you print money, it benefits basically a handful of people maybe--not even 5% of the population, 3% of the population. And when you look today at the market action, ok, stocks are up 1%. Silver is up more than 6%, gold up more than 4%, copper 2.9%, crude oil 2.68%, and so forth. Crude oil, gasoline are things people need, ordinary people buy everyday. Thank you very much, the Fed boosts these items that people need to go to their work, to heat their homes, and so forth and at the same time, asset prices go up, but the majority of people do not own stocks. Only 11% of Americans own directly shares."

On Interest rates

"On September 14, 2012, when the Fed announced QE3, that was then extended into QE4, and now basically QE unlimited, the bond markets had peaked out. Interest rates had bottomed out on July 25, 2012--a year ago--at 1.43% on the 10-year Treasury note. Mr. Bernanke said at that time at a press conference, the objective of the Fed is to lower interest rates. Since then, they have doubled. Thank you very much. Great success."

On the final

"Well, the endgame is a total collapse, but from a higher diving board. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don't know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate."

On Janet Yellen:

"She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don't believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let's tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence."

On gold direction:

"When I look at the market action today, I would like to see the next few days, because it may be a one-day event. The markets are overbought. The Feds have already lost control of the bond market. The question is when will it lose control of the stock market. So, I'm a little bit apprehensive. I would like to wait a few days to see how the markets react after the initial reaction." On 10 year treasuries "I will confess to you, longer-term, I am of course, negative about government bonds and i think that yields will go up and that eventually there will be sovereign default. But in the last few days, when yields went to 2.9% and 3% on the 10-year for the first time in years i bought some treasuries because I have the view that they overshot and that they could ease down to around 2.2% to 2.5% because the economy is much weaker than people think…I think in the next three months or so." On gold prices: "I always buy gold and I own gold. I don't even value it. I regard it as an insurance policy. I think responsible citizens should own gold, period." Marc Faber: "Fed's Neo-Keynesian Clowns... Are Holding The World Hostage"

"There is nothing safe anymore, because the money-printing distorts all asset prices," is the uncomfortable response Marc Faber gives to Thai TV during this interview when asked for investment ideas. Faber explains how we got here "massive money-printing and ZIRP creates a huge pool of liquidity that does not flow evenly," as it washes from Nasdaq stocks to real estate to emerging markets and so on. Each time, "the bubble inflates and then is deflated as the capital (liquidity) floods out." The Fed, based on the doubling of interest rates since they began QE3 "has lost control of the bond market," Faber warns; adding that while he expects some "cosmetic tapering," the Fed members and other neo-Keynesian clowns will react to a "weakening US and global economy," and we will be a $150 billion QE by the end of next year, as the world is held hostage to US monetary policy. The interview is interspersed with Thai translation but is well worth the time (starting at 1:25):



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 predicts another "Black Monday" by the end of the year

Marc Faber again makes pessimistic forecasts, writes MarketWatch. , Known as Dr. Doom, author of The Gloom, Boom & Doom Report, warning investors to prepare for a drop in the markets of 20% or more by the end of 2013 Faber predicted market crash like the one seen in 1987

"In 1987 we had a significant increase in stock prices. Profits, however, did not grow at a stable rate. Markets were overvalued. There was a sharp decline, and on August 25 was the last day on which a large number of shares registered 52-week low. In other words, the number of shares that rose, curled up and saw a number of disruptions to trade with different shares, "said in an interview with CNBC Marc Faber

October 1987 was a period that investors can not so easily forget. YTD broader index S & P 500 added 20% to its value. Faber comparison with 1987, when the market grew by 30% at the same time of year.

On October 19, 1987, the day known as "Black Monday", S & P 500 index dropped sharply by 20%. This event remains forever in the history of Wall Street as the biggest loss suffered in exchange for one day. It was the end of five years-long period of appreciation of the shares.

Faber notes that in just two days this week, when the S & P 500 hit historic high of 1,709 points, there were 170 issues, which were trading at 52-week lows. This means that only a few companies moving market.

Back in February, and then a few more times, Marc Faber make such negative predictions, but none of them came true. Analysts wonder how much longer he will play the role of the false shepherd before something actually happen?

Analyst at Schaeffer's Investment Research Ryan Detrick did make quite a different conclusion. According to him, just as in 1987, and now the index Dow Jones Industrial Average has almost doubled. Today, however, market participants behave differently compared to the year in question.

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: The Stock Market is Risky

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 Video: Gloom Boom & Doom - S&P 500 Could Fall 20% to 30%

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 Likes Bonds, Gold More Than Equities

"If you believe that Bernanke means what he says," says Gloom, Boom, and Doom's Marc Faber, "then you believe in Father Christmas." Faber adds that, "we are going to see QE99," and while he states that equities, bonds, and gold are "very oversold," he prefer to buy bonds and gold than equities. Marc Faber also warns that "the S&P could drop 20-30% from the recent highs – without much of a problem."

"The only thing that I know is that I want to own some physical gold because I don't want all of my assets in financial assets."

Marc Faber thoughts about the markets:

"Well, right now equities, bonds and gold are very oversold. They can easily rally on the S&P. We could rally 43, 50 points, but I don't expect a new high. Just in case a new high would be achieved in the next two months or so, it would not be confirmed by the majority of shares. In other words, very few stocks would lead the advance. In terms of bonds, they are also incredibly oversold. Where the sentiment about equities is actually still rather positive and all of these super bulls still predicting the market to continue to rise into 2014, 2015. In bonds and gold, sentiment is by historical standards incredibly negative. As a contrarian, I would rather buy bonds and gold than equities."

His comments on bonds and QE tappering:

"If you say that if he means what he says, then you believe in Father Christmas. He said if the economy does not meet the expectations of the fed in one years' time, they will consider additional measures. In other words, if the economy has not fully recovered by mid-2014, more QE will be forthcoming. As I said already three years ago, we are going to go with the Fed to QE99."

Is Marc Faber worried about inflation?

"Well, I think investors have a misconception about what inflation is because it is essentially an increase in the quantity of money and credit. We have wage deflation in the world in real terms, for sure. In other words, real wages are going down and the cost of living everywhere are going up. That is why you have social unrest in North Africa, in the Middle East, in Turkey, in Brazil, and it will spread because the average person on the street hasn't participated in the huge asset inflation that has been going on in high-end properties, Mayfair properties, Fifth Avenue, Madison Avenue, the Hamptons and in equities and until recently in bonds and commodities."

Marc Faber on gold down moves:

"To that I respond there are many people out there, they never owned an ounce of gold in their lives. They were bearish about gold at $300, bearish about gold at $700, bearish about the stock market in 2009 when the S&P was at 666. Now, they are bullish about stocks and they are still bearish about gold. The commercial hedgers - these are professional miners, mining companies and people involved in gold trading. They have the lowest short exposure, since 2001 when gold was at $300. Similarly, in the silver market, the commercial hedgers, again, the professionals have the lowest short exposure since 2001. I would rather bet on the commercial miners, the commercial hedgers than on some forecaster who knows about the future of prices as little as I know. The only thing that I know is that I want to own some physical gold because I don't want all of my assets in financial assets."

Comments on the US economy and stocks:

"First of all, I believe that today we are talking about the global economy. The U.S. stock market has just about outperformed any other market around the world in the last 6 to 12 months. We have big trouble coming into emerging economies. The emerging economies are not performing well, There is no growth at the present time. The Chinese economy, maximum is growing at four percent per annum. We have multinationals in the S&P. Their growth and global growth came from the last four years from the recovery in the emerging world. If the emerging world does not grow, the global economy will not perform well and corporate profits, as we just saw today from Oracle, will disappoint and stocks won't be the best investment in the world... I think the market is on the high side, corporate profits are inflated and we could easily, from the recent high, May 22 at 1687 on the S&P, drop by 20% to 30%, easily."

Marc Faber prediction on where gold will be by year end:

"Well, I think we will be higher by year end but I am not worried where we are. I have said that I buy gold regularly. I just bought today at $1300 and I will buy more at $1200 and I will buy more at $1100." "I don't know, I am not a prophet, I don't know exactly where the price will be on a month by month basis, but I want to have some wealth, some of my assets in physical gold. I can see a lot of problems coming into the world including expropriation through taxation or through regulation or even through revolution and social strife."

His thoughts on where 10 year yield is going: 

"I am tempted to buy a 10 year treasury at a yield of 2.5%. I think we will rebound in the treasury market. Yields will go down first, and if they go up further, it will kill the economy including the housing market."

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's Favorite Singapore REITs

Marc Faber: That's right. I like stocks such as SIA Engineering (SIE.Singapore) and Kingsmen Creatives(KMEN.Singapore) in Singapore. As for REIT stocks, they rose 40% last year, and are up 10% to 15% this year. They won't keep rising that way, but yields of 5% and 5.5% compare favorably with those of U.S. REITs. Plus, if inflation picks up, the REITs can raise their rents. In a world of inflated asset prices, there is a competition to choose the least-ugly assets. - in Barron's

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 Video

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 Marc Faber Video - 2013 Gold Price Prediction

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 Video: On Sex & Nightlife in Thailand

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 "I love the Fact that Gold is Finally Breaking Down"; Gold vs. Apple; Patience, Gold, Japan

Marc Faber loves that gold is finally breaking down. The reason is not to gloat, or a prediction. Rather "gold will offer an excellent buying opportunity".

Marc Faber on Bloomberg TV on the Fall in Gold Prices

"I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity. I would just like to make one comment. At the moment, a lot of people are knocking gold down. But if we look at the records, we are now down 21% from the September 2011 high. Apple is down 39% from last year's high. At the same time, the S&P is at about not even up 1% from the peak in October 2007. Over the same period of time, even after today's correction gold is up 100%. The S&P is up 2% over the March 2000 high. Gold is up 442%. So I am happy we have a sell-off that will lead to a major low. It could be at $1400, it could be today at $1300, but I think that the bull market in gold is not completed."

"$1300. Nobody knows for sure but I think the fundamentals for gold are still intact. I would like to make one additional comment. Today we have commodities breaking down including gold. At the same time we have bonds rallying very strongly. If you stand aside and you look at these two events, it would suggest that they are strongly deflationary pressures in the system. If that was the case, I wouldn't buy stocks or sovereign bonds because the stock market would be hit by disappointing profits if there was a deflationary environment."

On gold falling lower if we have a deflationary environment:

"Yes, I agree. That's why I said if the gold market collapse is saying something about deflation and at the same time we have this sharp rise in bond prices and the signals are correct that we have deflation, I wouldn't buy stocks because in a deflationary environment, corporate profits will disappoint very badly."

On whether a deflationary environment is possible right now:

"Everything is possible…In the economy of the cuckoo people that populate central banks, everything is possible. What you have is gigantic bubbles, the NASDAQ in 2000, then the housing bubble and then commodities in 2008 when oil went from $78 to $147 before plunging to $32 within sixth months. That kind of volatility comes from expansionary monetary policies from money-printing."

"All I'm saying is that I think we're going to have a major low in gold in within the next couple of weeks. Gold, as of today, you should actually buy as a trade. I think it can rebound in the next two days by $40."

On why gold will rebound $40 in the next two days:

"Because we are about in gold as oversold and we were essentially during the crash in 1987. From there we have a strong rebound. All I am saying as a trader I would probably enter the market quickly for a rebound of $20 or $40. From a longer term perspective, I would give it some time. We may go lower. I am not worried. I am happy gold is finally coming down, which will provide a very good entry point."

On whether investors should also stay in cash:

"My argument is that you should always have in this kind of high volatility environment a fair amount of cash because opportunities will always arise again and again and if you have cash you can then buy assets at a reasonable price. I think Patience is very important in this environment. The question is, how do you hold your cash? Hopefully not with a Cyprus bank.

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.

Faber: Cyprus Catastrophe 'Can Happen Anywhere in the World'

The banking catastrophe in Cyprus could be repeated in the United States and elsewhere, according to Marc Faber, the editor and publisher of the Gloom Boom & Doom Report.

“It can happen anywhere in the world, in Western democracies, because you have more people that vote for a living than people that work for a living,” Faber told CNBC.

Therefore, the wealthy in the United States should “be prepared to lose 20 to 30 percent. I think you’re lucky if you don’t lose your life,” he noted.

“If you look at what happened in Cyprus … people with money, they will lose part of their wealth either through expropriation or higher taxation.”

Despite equity markets reaching all-time highs, Faber is “very cautious” about the U.S. market.

"What concerns me really is that most foreign markets have performed very badly since January — emerging markets are down 10 percent and European markets have grossly underperformed the U.S. In other words, the U.S. is the only game in town," he stated.

"Each time there was only one game in town … it ended badly. So I am very cautious about the U.S. market. We could very well first rise and then have a crash from summer onward," Faber explained.

“We have this money printing, which obviously will lead to misallocation of capital.”

He cited concern over a “narrow leadership” concentrated in consumer stocks, such as Johnson & Johnson and Procter & Gamble.

But, Faber noted, 92 percent of financial wealth is owned by 5 percent of the population.

“The majority of people don’t own meaningful stock positions and they don’t benefit from a rise in the stock market,” he said. “But they are being hurt by rising costs of living and we all know that the real income of the median household is going down for the last few years.”

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 Video: Not Even Gold Will Save You From What Is Coming

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: "I Am Sure Governments Will One Day Take Away 20-30% Of My Wealth"

In a broke world in which the ridiculously named "muddle-through" has miserably failed, a global wealth tax seeking to expropriate some 30% of all financial assets is coming. As a reminder, back then we said that "all attempts to eliminate the excess debt have failed, and for now even the Fed's relentless pursuit of inflating our way out this insurmountable debt load have been for nothing.... The only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world's financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path."

Few took it seriously, and why should they - after all the market has been blissfully rising before and ever since then, which implies everything was ok, right? Wrong, as those who are lining up right now in the Cyprus late of night not to buy a shiny new iTrinket, but to access a measly €300 of their own money would promptly admit. Naturally, if more of our Cypriot readers had paid attention, they would have far more of their own money at their disposal right now, instead of having to beg Merkel's emissaries for a €300 handout tomorrow.

Now, a year and a half later, the realization that the global wealth tax is not only coming but is inevitable in practically every developed country, is finally sinking in, as this interview with Marc Faber confirms: "Until now, the bailouts in Europe and the U.S. were at the expense of the taxpayer. And from now onwards, in my view, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money I am sure the governments will one day take away 20-30% of my wealth."

He is correct, but probably optimstic.

The interview highlights:

Faber on whether he's participated in the equity rise in the U.S.:

"I think that I was relatively positive about U.S. stocks since March 2009. I haven't been shorting any stocks since 2009. The U.S. march is up and consumer confidence is down. Emerging markets are performing badly relative to the U.S., the dollar is strong, indicating a tightening of international liquidity. I do not think the U.S. market will go up a lot from here. I rather think there is now considerable downside risk."

On whether Europe can repair its house:

"They can repair it and actually Europe now has a current account surplus, which is positive. But obviously the economy is contracting. We are in recession in Europe. This will have an impact on the corporate profits of U.S. corporations as well because 40% of S&P earnings come from overseas, but the bulk actually comes from Europe and not emerging countries. I think that corporate profits in the U.S. will continue to contract as they have actually -- according to S&P -- contracted in the first quarter of 2012."

On why gold hasn't held up as a safe haven:

"When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn't flow evenly into the system. Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S. So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide."

On whether the raiding of bank accounts in Cyprus set a precedent for Europe:

"MF Global, the depositors were also raided. It is nothing unusual. Philosophically I believe that we shouldn't have deposit insurances, blanketed insurances by governments because it would force savers to be very careful with which bank they would deposit the money. The good banks would pay very low interest and take low risks and the banks that take high risks would have high interest. By the way, in Cyrus, banks were paying very high interest like in Lebanon at the present time I can get 6% on my deposits. So the depositors should have known that something is dangerous, but I would say that the principal now is very important to understand. Until now, the bailouts in Europe and the U.S. were at the expense of the taxpayer. And from now onwards, in my view, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money -- like I am concerned -- I am sure the governments will one day take away 20-30% of my wealth."

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 Video: Warns of Gold Confiscation

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 : The Market will push Interest Rates Higher

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 warns colossal credit bubble in China

The main risk for investors lies in the "colossal credit bubble in China," said Marc Faber, publisher of The Gloom, Boom & Doom Report, said on CNBC.

In 2012, investors were generally bearish towards the second largest economy in the world after China published the most anemic macroeconomic data for the last decade. In the last quarter of last year, investor confidence returned amid economic recovery and the news of the election of a new administration in Beijing.
This mood can be illustrated by the strong performance of the Shanghai Composite Index, which won 15 percent in December.

Faber warned that the growing credit bubble in China remains a key risk for investors in the country.

"If the Chinese government can ensure growth depends on reform and how to solve the problem of colossal credit bubble in the country. There are incredibly large amount of loans to black, bad debts and doubtful investments, "he said.

Western rating agencies warn of rapid expansion of the underground lending market, which is poised to become a real threat to financial stability.

Fears of Faber coincide with the request in December warning from the World Bank (WB), according to which the Chinese economy risks overheating because loose monetary policies of Western central banks leads to hot capital inflows to the region. They are the reason for the excessive growth of credit and investment bubbles swelling, according to a study of the bank.

Recent data on Chinese exports, which exceeded market expectations are also cause for concern, according to Faber.

Data on Chinese exports in January revealed a growth of 21.8% yoy, while analysts expect it to reach 10.1%. However, the reliability of this statistic is questionable because of discrepancies with the customs declarations in neighboring countries, including South Korea and Taiwan.

Faber said he believed the growth of the Chinese economy will actually be much lower and that some sectors will even fall into recession.

"I think the economy has slowed considerably, but they will announce that they have achieved the planned 7.5 percent. Real growth will be much lower. If you look at the data that can be relied on to a greater extent as those in Korea, Japan and Taiwan, statistics from China fits into the equation, "he said.

"China's economy will slow, and some sectors will even fall into recession ... The question is what will happen next. I think China will grow, but the road will be difficult, "said Faber.

In 2012, China's economy grew by 7.8 percent. The government in Beijing has set a growth of 7.5% in 2013, although most analysts predict that the expansion will reach 8%.

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 Warns: ‘Market Has Peaked Out’

If the stock market continues to climb into July or August, a crash is possible, says Marc Faber, publisher of the Gloom, Boom & Doom Report.

The stock market has "peaked out" and bonds may be on their way to a rebound, Marc Faber, publisher of the Gloom, Boom & Doom Report, said Thursday on CNBC.

"I think we have made an intermediate top, and it could be a longer-term top," he said on "Fast Money."

"I don't think the market is as overbought as it was in '87, so I don't expect a crash. But I think for the time being, the market has peaked out, and I think in the meantime, bonds, which are extremely oversold, could rebound," he said.

The S&P 500 closed at 1,502.52 Thursday. A level of 1,530 could prove to be a longer-term high, Faber said.

"What I maintained in earlier interviews is that either we have a correction now, and then we go up further or we go straight up high in July-August, from where we could crash, so I welcome a correction here," he said. "The question will be, after this correction, we have to watch the market's rebound, whether it can make a new high or not."

Faber's holdings are 25 percent gold, 25 percent equities, 25 percent corporate bonds and cash, and 25 percent in real estate.

Why should investors believe his bearish prognostications?

"There was a correction between March, April 2012 and actually June 2012, so we had a correction, and then from September onward, when the S&P reached 1,474, we also had a correction into November, at which stage I said that the market would now rally. So I don't think I've been so totally wrong about the moves of the market, especially since 2009, and I can document those with the performance of my portfolio.

"But I think that the market has now become quite overbought and that is very significant or overextended, bullish sentiment. Everybody says, 'Sell bonds, buy equities.' And when everybody thinks alike, one has to be careful."

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 Video: 2013 Gold Price Prediction

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 Video: Buy Gold To Protect Against The Next Crisis

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 — Market Pullback Coming

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 Video: A Crash is possible in July or August

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 Warns 'Market Has Peaked Out'

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 Video

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: Enjoy while you stock rise

The euphoria of investors pushing prices up, but soon the mood may change. This analyst Marc Faber warns in an interview with CNBC.

He said the rally that lifted the broader index S & P 500 to its highest level since 2007, lost power and may soon be over.

"The market is very svrahizkupen. However it is possible to follow only a mild correction in February, after which the growth to continue, "said Faber.


His opinion is that this year we can see a movement similar to the movement in 1987. Then from January to August market jumped 41 percent, but in October and November, losing 40 percent. This shows that we will probably have high volatility during the year, says Faber.
Generally known for his gloomy predictions Faber rarely speak positively about the market.

The specialist said that currently exempts from its long positions. "In this situation sell. Restrict positions because euphoria gaining strength, "he explains.

"Corporate profits are likely to disappoint this year. Incidentally, there may be geopolitical problems, "said Faber, adding that recently returned from a trip to the Middle East, which is the" melting pot. "

Faber continues to hold a large percentage of its portfolio in shares of gold mining companies. "Buy gold because afraid of a systemic crisis, there will be wars and so on," he said, adding that he is optimistic for markets like Russia, Vietnam and China.

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 Fears 1987 Redux As "Markets Will Punish Interventionists"

"Regardless of what the markets do near-term, a correction is overdue," Marc Faber tells Bloomberg TV's Betty Liu. From discussing Europe's 'apparent' stabilization - "anything can go up when you print money"; to US equity exuberance - "a correction is overdue and February is a seasonally weak month"; Faber sees no change from Geithner's handover to Lew as he opines: "The only thing I know is one day the markets will punish the interventionists, the Keynesians and the monetary policy that the Federal Reserve and ECB has enforced because the markets will be more powerful one day. How will this look like? Will the bond market collapse or equity markets become a bubble, which would be embarrassing for the Fed's sake if the U.S. market became a gigantic bubble and at the same time the economy does not recover."


Faber: on whether he agrees with George Soros that Europe has been stabilized:
"It has been stabilized for now, but the big question as he said is the imbalances have not been solved and these could come back and harm the markets and the euro at some point in the future. In terms of stock markets, I have advocated one year ago between April and June of last year to buy European stocks in Portugal, Spain, Italy, Greece and France because they were extremely depressed. Since then, the markets have rallied very sharply. Greece is up from the lows by 100%. That tells you anything can go up when you print money."

On whether he's getting out of European markets:
"Not really because we made the secular low roughly one year ago, but I have argued that it is the time right now to reduce equity positions. I think the markets are at the difficult juncture between overbought and a euphoric state. I am not ruling out that they could go up somewhat more like in 1987, going up 40% between January and August, but we also fell 40% in two months' time. So the gains were wiped out quickly. In March of 2009 we are close to 1500. We had already a huge bull market, and a lot of the good news has been discounted already." On whether there will be a correction on the S&P: "I think regardless of what the markets do, near-term, a correction is overdue and usually February is a seasonally weak month…It will be interesting to see how the correction unfolds."

On why he's not going big on any short in the market:
"The problem with shorting the markets nowadays is that you have this huge intervention by governments. Look at bonds of Italy Portugal and Spain--they rallied last year, there was a huge profit opportunity, and I admit that I missed it, but the profit opportunity came about as a result of government intervention. I feel the markets are -- some people say it is intervention. I can call it manipulation. If manipulation continues, you do not know how far they will go. The only thing I know is one day the markets will punish the interventionists, the Keynesians and the monetary that the Federal Reserve and ECB has enforced because the markets will be more powerful one day. How will this look like? Will the bond market collapse or equity markets become a bubble, which would be embarrassing for the Fed's sake if the U.S. market became a gigantic bubble and at the same time the economy does not recover."

On Tim Geithner's legacy and whether anything will change under Jack Lew:
"I doubt there will be much change. To be fair to Mr. Geithner, he inherited a colossal mess. he is involved in politics and he has to listen to what the politicians want to do. He did an ok job. Where it is not ok is that basically nobody that has committed financial fraud or contributed to the fraud was prosecuted."

Source: Zerohedge

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.

Faber To Shiller: “You Keep Your U.S. Dollars And I’ll Keep My Gold”

“Everyone should keep gold in their portfolios” as the precious metal will be able to offer value to investors even in a worst-case scenario, said Marc Faber, the publisher of the Gloom, Boom & Doom report.

“In the worst case scenario, in the systemic failure that I expect, it would still have some value,” Faber, who is also the founder and managing director of Marc Faber Ltd., said today at an event hosted by Evli Bank Oyj in Helsinki.

Faber said his outlook was so bleak that he is “hyper bearish”. He joked that “sometimes I’m so concerned about the world I want to jump out of the window.”

He wisely said that `I advise everyone to have some gold.'

Faber said that he thought there could be a flight out of cash and overvalued bonds and into equities and gold.

In response to a question from Yale University’s Robert Shiller querying the recommendation to hold gold, Faber said: “I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.”

Faber, whose advice has protected millions of investors in recent years, warned of a global systemic crisis possibly due to massive size of the global derivatives market which is now worth over an incredible $700 trillion.

He warned “when the system goes down,” and only plastic credit cards are left, “maybe then people will realize and go back to some gold-based system.”

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.

A new dose of sunshine from Marc Faber

FABER: `I'M HYPER BEARISH, SOMETIMES WANT TO JUMP OUT WINDOW'
FABER: `PLACE FOR KEYNESIANS IS NORTH KOREA'
FABER: GOLD WOULD STILL HAVE VALUE IN WORST-CASE SCENARIO
FABER: `I ADVISE EVERYONE TO HAVE SOME GOLD'
FABER: VERY CONCERNED ABOUT LARGE SIZE OF DERIVATIVES MARKETS
FABER: SOME VALUE IN EASTERN EUROPE, BULGARIA, UKRAINE
FABER: PRINTING MONEY WON'T HAVE EQUAL EFFECT ON ALL PRICES
FABER: MAY SEE FLIGHT TO EQUITIES AWAY FROM CASH AND BONDS

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 couldn’t attend the Barron’s Roundtable 2013

Marc Faber, editor of the Gloom, Boom & Doom Report, couldn't make it to this year's Roundtable, but they are keeping his seat warm for 2014. They have a good hunch there will be even more to talk about then.

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 Video: Why I will Never Sell Gold

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: The US Dollar is a very Sick Currency

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: Still holds gold as an insurance policy

Similarly to Kyle Bass who holds gold as an insurance policy against political stupidity, Marc Faber is also very concerned and holds gold. He recommends investors to accumulate gold every month and to hold significant percentage of their portfolios in the yellow metal. Even though he is not worried about USD collapse in the short term, he continues to like gold long-term.

He still believes that governments will do competitive devalutions pushing the price of gold higher and higher and that's why he wants insurance. Gold prices probably won't increase soon and there may be a correction of "10 percent or so on the downside," said Faber, managing editor and publisher of the Gloom, Boom and Doom Report.

Marc points out that he feels "deeply uncomfortable" about the future of the global economy, the geopolitical situation and social unrest in different countries. "I don't particularly like any assets at this stage. I mean have I a diversified portfolio, I'm not liquidating anything, but I have a lot of cash."

In his January Market Commentary of the Gloom Doom and Boom report, Marc Faber predicted that gold would fall to $1,550 to $1,600 an ounce, according to CNBC. Still, he wrote that he planned to increase his gold position on any further weakness, despite his concerns that strength of the U.S. dollar could be a headwind for a strong gold rally.

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.