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Monday, January 31, 2011

My preferred currency remains gold and silver : Marc Faber

Marc Faber : "..The dollar is somewhat oversold, and in the past 2-3 months, the sentiment about the US dollar was extremely negative. I would take a rather positive view of the US dollar, not because there is anything good about the US dollar but because the other currencies are no better. My preferred currency remains gold and silver..
in ET Now
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Sunday, January 30, 2011

I think natural gas is relatively inexpensive : Faber

Marc Faber : "...I wish I knew, but I think natural gas is relatively inexpensive. In general, entry prices will go up in the next few years. We may have corrections. I do not know which asset class will be the best performing in 2011. I just can give you asset classes that are relatively inexpensive. These would relate to markets like the Middle East, Vietnam and Russia, which is still reasonably good valued. The big move in equity occurred between March 2009 and the end of last year, and in some markets, it was earlier in April 2010. From here onwards, the upward move will be much more difficult. ..."
in ET Now
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber broader call for emerging markets for 2011

Marc Faber :"...Yes, they will go down first and then we will have to see what happens thereafter. We live in a very volatile environment and that we have to take step by step. There are no points to predict where the markets will be in a year's time. From this level, we will move in a trading range. I do not think we will make a new low below the March 2009 low, which was below 9000, but equally I do not think we will go up substantially. ...."
via ET Now


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

Correction in emerging markets on expected lines: Faber

In an interview with ET Now, Marc Faber , Editor of The Gloom, Boom & Doom, says the Indian markets will remain range-bound for the next few months and can retrace 16000 levels at least. He advises investors to accumulate gold and silver gradually.




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

Saturday, January 29, 2011

Marc Faber outlook for The Equity Markets

Equity Markets: Marc Faber believes a correction is imminent for the stock market as bullish sentiment (AAII sentiment) nears record levels and mutual fund cash positions remain very low. Furthermore, the latest upward move in stocks has occurred on declining volume, which is usually bearish from a technical point of view. The correction should occur in January. That being said, you should be buying into the correction as it represents a good buying opportunity. Faber prefers energy companies and speculative stocks such as home builders and even AIG. He goes on to say that the third year of a Presidential cycle is very good for speculative stocks versus traditional blue chip value plays.

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

Thursday, January 27, 2011

Bernanke Should Resign (25-Jan-11) - Marc Faber

Marc Faber on Bloomberg 01-25-11
Marc Faber gives a great interview where he explains what is happening short term & Long Term + his views on the so called "RECOVERY"!!


Marc Faber is awesome; he is one of the best intellectual economic minds of our time. His analysis of the U.S. & the world markets are dead on accurate.Marc Faber is a very big supporter of Austrian economics as is Jim Rogers, Peter Schiff, Lew Rockwell, and Ron Paul.He's right about Obama - he's done absolutely NOTHING to reverse any of the policies of Bush.Patriot Act still law, both wars are still going on, warrantless wiretapping still going on, Guantanamo is still running - NOTHING has changed, bailouts still are going on, nobody prosecuted in the financial sector.

Obama is a complete scumbag and he's everybit as bad as Bush.

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

Wednesday, January 26, 2011

Marc Faber Expects 10% Drop in S&P 500, Says Stocks Expensive

Jan. 25, 2011 Marc Faber : ....well I was very critical of Mr Bush but at least he had one line and he sticked to that line , he set out to do a scene and he was relatively straight on that scene that he did , he may have been wrong and I criticized him very frequently but at least he did not change his mind continuously and even prostitute himself ...we foreigners we just laugh , we just laugh at someone like president Obama ...well if you want me to be honest I think he has done a horrible job and I think that will continue I think he is basically a dishonest person and change ?!?! nothing has changed ...let's change the subject from politics to actually economics and to investment markets because in three days I have to go to the United States I do not want to be hasseled at the border

Marc the US government is going broke as fast as it can to keep this fraud laced market propped up Maybe now Obama will change the system, maybe now it will be RFID food stamp implant chips in the FEMA concentration camps serving a daily menu of monsanto death foods.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Marc Faber appeared on Bloomberg TV, in what may go down in history as his most scandalous interview ever.

Faber, who appears to have had enough with all the bullshit, propaganda, and lies, replies: Ben Bernanke should be disposed, and as for the president, "I think he's done a horrible job and I think that will continue, I think he is a dishonest person, and nothing has changed"...

Some politicians are more honest than others. I don't think that I have a very high regard for politicians, I have a high regard for businessmen and for people who work, and not for people who abuse the system continuously.

In comparison to other politicians, I think he came in on a platform as a president that would want to change the government in Washington, and actually he's made it worse...

We foreigners, we just laugh at someone like Mr. Obama.I agree with Marc .. Obama has done a horrible job and it will only get worse .. Good luck at the U.S. Customs and Boarder Service, Marc!

Monday, January 24, 2011

Marc Faber : the US economy has contracted massively since the year 2000

Marc Faber :"...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms...."

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

Sunday, January 23, 2011

Its important to understand the cause of the crisis

Marc Faber :"....What I think its important to understand the cause of the crisis, the cause of the crisis is excessive monetary growth leading to excessive debt growth, to the Nasdaq bubble, to the housing bubble that then led to overconsumption in the US and a symptom of over consumption in the country is always growth in trade deficit that then shifts production overseas because one trade deficit in one country is offset by trade surplus somewhere else. And to simplify matters lets say it was China.


So actually, the US monetary policies have been very good for Asia, specifically for China because it fostered industrial production growth in China, employment growth, wage increases, domestic consumption, increased demand for raw materials, that then lifted commodity prices. For that actually the developing world, the emerging economies including China, India , Vietnam, Brazil and so forth should all send a thank you note to Bernanke.....:
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : Mirror, Mirror on the Wall, When is the Next AIG to Fall?

Presented by Marc Faber at "Austrian Economics and the Financial Markets," the Mises Circle in Manhattan on 22 May 2010 in New York, New York. Includes an introduction by Mises Institute president Douglas E. French.


Dr Faber has crammed so much information in this presentation that one really needs to either spend three hours watching it, pausing frequently to absorb all of it, or re-watch it several times. There are few investors in the world with a more lucid perspective than Marc Faber, as I believe this video shows.This is essentially the same lecture he gave in Slovenia in 2009, albeit updated. Excellent macro overview.
Dr. Faber is an amazing economist. I thought it was interesting he was saying not only hold investments in foreign countries but to also be able to access your wealth in other countries. I remember Peter Schiff discussing recently that US citizens can no longer open investment accounts in foreign countries. The dollar is worthless because it's just a piece of paper. There are trillions of U.S. dollars not entering the market. If they did the U.S. dollar would weaken substantially and eventually lose it's luster and spiral downward. The fact that U.S. dollars are accepted outside of the U.S. is a world-wide scam. The only reason people accept U.S. dollars is because it has reserve currency status.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Saturday, January 22, 2011

I have been very critical of the Federal Reserve for the last 20 years

Marc Faber :"...As you know I have been very critical of the Federal Reserve for the last 20 years because the Federal Reserve with its expansionary monetary policies and without the policy paying attention to excessive credit growth created first the Nasdaq bubble and later on the housing bubble and in 2008 the commodities bubble. So I have been very critical of these policies for a very long time, including of course now QE2 as I was also skeptical about the success of QE1 for the simple reason that the Federal Reserve can control the quantity of the money.

In other words, Bernanke as he said and wrote the US can drop dollar bills from helicopters onto the US, but what they don’t control is where these dollar bills will flow to, and as it happens it went into bubbles in US creating over consumption, and symptom of overconsumption was then the trade and current account deficit that shifted production and capital spending overseas and shifted economic growth to emerging economies and now QE2 what it will do is essentially it will foster bubbles, in commodities, in precious metals and in the capital markets of emerging economies where the capital will flow to....."
via www.moneycontrol.com

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

Marc Faber on QE2

A Lot Of QE2 Has Been Discounted says Dr. Marc Faber :
Back in July/ August, investors were bearish on the market and they talked about the Hindenburg Omen and that everything would crash. What then happened was, September was very strong, October was a reasonably good month as well and the market has gone from a low on July 1st of 1010 on the S&P 500 Index, to close to 1200.

And so, a lot of QE2 has been discounted, and if you were Mr. Bernanke, I suppose you would probably disappoint investors somewhat with QE2, and watch the market reaction. If the markets really sell off, you can then increase QE2, or launch QE3, QE4, QE5 and so forth. There will be many more QE`s.


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

Marc Faber outlook for Oil

Looking at the dynamics of the oil market, I think that investing in oil is quite desirable for 2 reasons:

First of all, if the optimists are right, and we have a global economic recovery, and it would appear for the time being to be the case...because during the crisis of 2008 and 2009, oil consumption in the developed world went down, but in emerging economies it continued to go up. But now, in the developed world its picking up, so total global oil consumption is rising and that will put pressure on oil prices.

But if you believe in a horror scenario, which eventually brings about high inflation and then war, oil is also very desirable because it will lead to interruptions on supply. In either case, if you are very bullish or very bearish, you should own some oil or energy equities.
via CNBC

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

Friday, January 21, 2011

Indian stock market

Marc Faber “I wouldn't buy the Indian stock market today. It is not a bargain. If it goes too much higher, it could easily halve. Chinese shares, which were very expensive, are now more reasonable.”

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

Japan markets

Marc Faber : “I'm very positive regarding Japan's markets,”


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

The Japanese share market

Marc Faber : “The Japanese share market will strongly outperform New York in the next five years, ... The enormous cash reserves from private households and companies, the money they keep under their mattresses, will flow into the economy.”


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

Inflation has come to America

Marc Faber : “Twenty years ago, ... [a family] spent its income on housing, clothing, food appliances, cars, a radio and a TV. Today, it will spend additional money on a DVD player, computers, fax machines, printers, several cellular phones and a whole host of other new electronic gadgets...modern society requires people to continuously enlarge the 'basket of goods' that are considered necessary to lead a 'good life.'”
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Thursday, January 20, 2011

Marc Faber on prostitutes and beer and The US Economy

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer/Software it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part .
"

Contrarian Investor Dr.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 All Doomed

"I don't have a very high opinion of Mr. Obama," Faber said, adding "I was negative of Mr. Bush but I think Mr. Obama makes him look like a genius."

The unintended consequence was that "the annual expenditures for oil in the US increased… you had another US$500 billion tax on the consumer. That pushed the consumer down even more in his reduction of consumption," Faber said.

"Most people don't have money left after the policies implemented in theUS," Faber said. "These people, they should all send a thank you note to Ben Bernanke for printing money because it didn't benefit the US, it benefited emerging countries."

"When someone tells me the government should regulate the banks, they shouldn't. It's a disaster. But they should have interest rates that are high, that curtail speculation," Faber said.


"The average family will be hurt by that, and then in order to distract the attention of the people, the US governments will go to war," he said.


"In my opinion it's beyond repair. If the US were a corporation and had proper accounting, they would be 'Triple C, ' nobody would buy their bonds ," Faber explained.

"I think that sovereign debt is priced to perfection, you assume they will pay with the exception of maybe Greece, but that is a tall assumption," Faber told CNBC

"Having said that, in the near term I think the dollar could rally because the others are no better, the others are worse," said Faber. "I think that the dollar will rally now against the euro and against the pound sterling and probably against the yen."



"Investors who rushed into government-guaranteed debts in 2008-2009 in the belief that AAA-rated governments would always pay the interest on their debts and repay the creditor in full upon maturity could be in for a rude awakening sometime in the next 5 to 10 years," Faber wrote in The Gloom Boom Doom Report

"So, whereas it was wise to own long-term US government bonds between 2000 and 2009, for the next 10 years I expect a massive outperformance of equities compared to bonds," he said.

"I think both the US markets and Japan this year might outperform emerging markets," he said..

"When you look at the US… it's a total disaster, we're all doomed, we're doomed," he said.

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

The US Economy Will Not Double Dip For Now.

"I don`t think it will double dip for now, we are living in a global economy today and you have parts of the world that are relatively weak, like the US and Europe, although from the lows they have recovered somewhat. Than you have other parts of the world that are very strong, emerging economies, especially China and India. The big question is what will happen to that part of the world."

in Bloomberg

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

Bullish On Energy Companies

"Faber likes energy companies since the long-term trend in oil is up, as supply fails to keep up with surging demand from emerging markets. Notes that emerging markets have surpassed the developed world in oil consumption and that this trend should keep demand strong for the foreseeable future. Faber likes the majors like Exxon Mobil (XOM), Hess (HES), and even Chesapeake Energy (CHK) as natural gas is too cheap on an inflation adjusted basis. Continuing the energy theme, coal and uranium stocks should be gradually accumulated on weakness as the world looks for alternative sources of reliable energy. Peabody Energy Corporation (BTU) on the coal side and Cameco Corporation (CCO) for uranium should outperform over the next few years." - in Commodity Online

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

The Next Correction In Stocks Is A Buying Opportunity.

"Faber believes a correction is imminent for the stock market as bullish sentiment (AAII sentiment) nears record levels and mutual fund cash positions remain very low. Furthermore, the latest upward move in stocks has occurred on declining volume, which is usually bearish from a technical point of view. The correction should occur in January. That being said, you should be buying into the correction as it represents a good buying opportunity. Faber prefers energy companies and speculative stocks such as home builders and even AIG. He goes on to say that the third year of a Presidential cycle is very good for speculative stocks versus traditional blue chip value plays." - in Commodity Online

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

The Only Emerging Market That Looks Attractive Right Now Is Vietnam.

"While he is very bullish long-term on emerging markets, investors should avoid (or at least lighten up on) emerging market stocks right now. They should only be bought on corrections which would represent favorable entry levels. Overall, Faber thinks the SP 500 will outperform emerging markets in 2011. The only emerging market that looks attractive right now is Vietnam (VNM)."

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

US Treasuries Outlook: Bearish Long Term, May Rally Short Term

"Us Treasuries Outlook: Dr Marc Faber reiterates his bearish long-term view on US Treasuries, but notes that they are currently oversold and could be a good trade at this point. But this would only be a short-term bounce as rates have likely bottomed and higher inflation will erode future returns." - in Commodity Online

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

Bullish On Japan

"While everyone is still bearish on Japan, Faber likes Japanese equities and thinks they have the potential for more upside. In particular, he likes Japanese financials such as Nomura and Mizuho Financial." - in Commodity Online

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

In The Near Term There Is No Danger Of An Implosion In China

“It may be a painful adjustment, but in the near term there is no danger of an implosion in China. If I was negative about China and the credit implosion in China, I would short the Chinese banks.” - in Bloomberg

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

Long Term US Treasuries Are A Suicidal Investment

“This [long-term U.S. Treasuries] is a suicidal investment. Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.” - in Bloomberg

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

The Eurozone Is Worse Off Than The United States

The Eurozone is worse off than even the US at this point because they lack a single fiscal authority. Difficult to implement a federal/super-sovereign approach in the Eurozone due to challenge of implementing a single taxing authority with supervisory and enforcement powers. - in Seeking Alpha, from a Marc Faber Luncheon - January 11, 2011

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

Bullish On Oil. Going Long Nymex Oil Futures.

"Faber seemed most bullish on the price of oil and pointed out that Chinese consumers consume only 2 barrels of oil per capita/year while US consumers consume over 20 barrels of oil per capita/year." - in www.robertsinn.com, in "A Lunch with Dr. Faber"

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

Emerging Markets Will Underperform.

"The emerging economies’ stock markets have outperformed the US significantly over the last 18 months since March 2009. We might have a period in which the more mature economies like the US and Europe can outperform emerging markets." - in CNBC TV18

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

Commodities: Period Of Consolidation Or Serious Correction Could Unfold

"Each commodity is differently placed. In general, the price of natural gas is cheap while cotton price is on the high side. Grains will move according to supply issues. If the floods or droughts continue, then we will face disruption and prices could go higher. The asset markets are quite extended and the period of consolidation or serious correction could unfold." - in CNBC TV-18

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

The Federal Reserve Repeatedly Messes Up Everything

“If there’s one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution.” - in www.favstocks.com

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

The Sensex Will Go Down to 16,000 At Least

"We are down almost 10% from the peak and will go down on the Sensex to around 16000 at least." - in Economic Times


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

We Have Inflation In China And Vietnam

"We have high inflation in Vietnam and China. If each of the central banks does not do anything, inflation will accelerate and eventually cause even more problems. If the central banks step in and tighten monetary conditions, it would not be very good for equities."- in Economic Times
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