The optimism shown in the markets due to bailout and monetization

Marc Faber : “Basically the optimism arises from some sort of a bailout and monetization. But if you look at the market, OK it’s up, but gold is also up and oil is up.And I do not think it really helps it just postpones the problems like in the US, we monetized time and again and it’s just postponing the problem. In the end, crisis will eventually happen. The problem of the Western world is that there is too much debt and too many unfunded liabilities.” - in Fox Business News 28 Nov 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.

Europe will monetize the debt just like in the US

Marc Faber : “The big picture endgame in Europe is that they will also in one or the other form monetize like in the US and that will postpone the problems , but it will not solve them.” - in Fox Business news 28 Nov 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.

Marc Faber : do not expect too much from the current market rally

Marc Faber : “The rally came from a very oversold level. We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.”

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

Bonds are not attractive

Marc Faber : “A year ago I said that if the yield on the 10-year Treasury bond dropped to around 3% I would be tempted to short it again. The 10-year now yields 3.2%. You could short the TLT, the iShares Barclays 20+ Year Treasury Bond, an ETF of long-term bonds. It has rallied from 87.30 to 98. If we are in a deflationary environment in the U.S., the Fed will print money again. Therefore, bonds aren’t attractive.”



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

Shorting the Australian dollar as a way of playing the slowdown in China

Marc Faber : “Everything I recommended at the January Roundtable is still OK, but I wouldn’t rush to buy now because if China slows more, other Asian nations will suffer. I also recommend shorting the Australian dollar as a way of playing the slowdown in China, which will lead to reduced demand for industrial commodities. Australia, a major commodities producer, is like a warrant on China. I would rather short the Australian dollar because the Chinese market already has fallen 30% from its August 2009 high.

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

Government Bonds not 100 percent Safe

Marc Faber - Bloomberg Radio Interview 26 Nov 2011 : ...an increasing number of investors are becoming aware that actually government bonds are not as safe as they may have thought originally or previously and so they are moving probably money out of bonds and cash into equities

The S&P has done actually well and it will certainly continue to outperform the other markets ,

the market is oversold and we are set up for a December rally

I do not like government bonds of any sort , equities in my opinion are more attractive than bonds ...

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

Insider Selling concerns me

Marc Faber : I would just like to say about the insider selling, this is also something that I follow and that concerns me. But having said that, and being on the boards of different companies, let me explain to you what happens. Let’s say I am on the board of a company and I get stock options, and I exercise the stock options and then to diversify, I may sell some of the shares I own in that company through my stock option plan, and then I may go and buy other stocks in the market, or make other investments. Because of the proliferation of option plans in the last twenty years or so, there is a natural tendency that when a CEO sells shares, it is reported, but when he invests with hedge fund management, or buys shares in other companies, it is not reported. I think there has been a change in the validity of this statistic. But I agree with you, at the present, the ratio is so huge between selling and buying, that it is a rather negative indicator. Then, when you combine that with other indicators that are also negative, a hugely over-bought market, for instance, I think some caution is in order.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Its Going To Be Very Difficult For Markets To Make A New High

I think it`s going to be very difficult for markets to make a new high above (in the case of the S&P 500 Index), the May 2 high at 1370. I think there is a lot of supply between this level, 1260 and 1350, so I doubt we will see new highs. But that does not mean the market cannot rally another 5 percent or so.

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

Markets are very volatile partly because interest rates are at zero percent

Marc Faber : Markets are very volatile partly because interest rates are at zero percent...and in real terms, negative which essentially stimulates speculation. In addition, we have high frequency trading that lead to very wild swings in the markets. - in Bloomberg TV

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

QE3 Is Just A Matter Of Time

A third wave of quantitative easing by the US Federal Reserve is just a matter of time. - in Taipei Times

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

China Invented Paper, They Know How To Print Money

Chinese invented paper. They know how to print money. - in Taipei Times

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

Real Inflation in China is Somewhere Between 12 Percent And 15 Percent

Don’t believe China’s consumer price index stands only at 5 percent. The truth is somewhere between 12 percent and 15 percent... The real-estate bubble is so evident that Chinese property shares are very weak as the volume of real-estate transactions goes down and prices fall. - in Taipei Times

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 revisits Zurich University of economics

Marc Faber : If I could go back in life I would definitely study economics again. What I have noticed in life is, if you are a lawyer or if you are a medical person, you don`t have the geographical freedom as I had in economics. I could practice economics anywhere in the world, in Latin America, in the Middle East, in Asia...and I could travel a lot and see the entire world.

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

it is going to be very difficult for the market to make a new high

Marc Faber : well I think it is going to be very difficult for the market to make a new high above in the case of the S&P May 2 the S&P at 1370 I think there is a lot of supply between this level here between 1260 to around 1350 , so I doubt we will see new highs but it does not mean that the market cannot rally another 5 percent or so - 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.

High frequency trading leads to very wide swings in the market

Marc Faber : I have a view , my view is nobody knows , because markets now are very volatile partly because interest rates are now at zero percent and in real terms negative which essentially stimulate speculation and in addition we have high frequency trading that leads to very wide swings in the market because the high frequency traders are basically based on models that are momentum like models in other words the market goes up everybody goes long the market goes down everybody goes short and what we had is a peak as I mentioned on May 2nd at 1370 on the S&P and then we went down sharply in late July August and bottomed out on October the 4th at 1074 on the S&P when everybody turned negative and after we had this very sharp rally almost 20 percent and I think this rally may carry on somewhat and that the super bear that think the S&P drops to 400 for the time being it will have to go to hibernation - 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.

Marc Faber - Bloomberg TV - 14 Nov 2011

Nov. 14 (Bloomberg) -- Marc Faber talks to bloomberg about the Global Stocks, Europe Crisis, Fed Marc Faber, publisher of the Gloom, Boom and Doom Report," talks about the outlook for global stock markets. Faber also discusses Europe's sovereign debt crisis, the U.S. economy and Federal Reserve monetary policy. He speaks from Ho Chi Minh City, Vietnam, with Susan Li on Bloomberg Television's "First Up."(Source: 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.

Allocate 25 percent to Gold Bullion

"The best thing an individual investor can do right now is to hold 25% of his assets in equities, 25% in real estate, 25% in gold, and 25% in cash," "If equities, real estate, or gold drop another 10% to 20%, put more cash in." said Faber last week. - in Bullion Vault

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

Investors Should Accept Greek Writedown of 90 Percent

“Greece is bankrupt, whether they want to admit it publicly or not,”

“It will need a 90 percent writedown, but that’s not going to happen. What will probably happen is a 50 percent writedown.” - 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.

In America we have a tyranny of the masses

"So you end up with kind of on the one hand a tyranny of the masses where you distribute all kinds of goodies to people. Like in America roughly 50% of the population gets a handout one way or the other from the government. So by continuing to support these people, you get their votes. "And at the other side of the spectrum, you have the people that pay the tax, the big corporations, and the well-to-do people, and they also want to maintain their interests, which is natural." And so you have a completely dysfunctional political system -in 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.

No One Forced Banks And Insurers To Buy Greek Bonds

No one forced banks and insurers to buy Greek bonds. The crisis we have today won’t be fixed and the problems won’t be solved, they will be delayed. And then one day, we’ll see the final crisis, where numerous governments will go bankrupt. - in Bloomberg TV

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

Rising Living Standards In the Emerging World Will Keep Commodity Prices Well Bid

Rising living standards in the emerging world will support demand for commodities — and keep us paying through the nose. Faber observes that if you double someone’s income from $1 million to $2 million, their spending on raw materials “except maybe cocaine” doesn’t rise. Not so for someone on a few thousand dollars a year. They buy cars and the other trappings of middle-class living. - in WSJ Blog, covering World Commodities Week in London

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

Rates Will Stay Negative In Real Terms

Dr. Marc Faber, editor of the Gloom Boom & Doom Report, believes the Fed will keep rates near zero even longer than 2013. In his November commentary, he points to the opinion of Chicago Federal Reserve Bank President Charles Evans, who wants the Fed to “commit itself to keep short-term rates at zero until the unemployment rate falls below 7 percent or the outlook for inflation over the medium term goes above 3 percent.” If Evans has his way, Dr. Faber extrapolates that rates could “stay at zero for five or even 10 years (and negative in real terms).” - in DailyMarkets.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 Interview by Chris Martenson

Bad Medicine: Dr. Marc Faber on Bernanke's Quack Cures This podcast was originally published on January 16, 2011 "If there's one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution." So says famed investor Marc Faber in an interview he gave to ChrisMartenson.com this week. In it, Chris and he dive deep into the Fed activity (encouraged by Washington and Wall Street) responsible for the current severe health of our economic system. Both feel that once you understand the nature of the critical role the Fed now plays, you have much better clarity into what the most probable outcomes for our economy and financial markets will be.

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