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