Avoid Government Bonds

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for stocks versus bonds and his investment strategy. He speaks with Sara Eisen and Erik Schatzker on Bloomberg Television's "InsideTrack." (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.

Marc Faber Sees Bubble in Safest Government Bonds

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for stocks versus bonds and his investment strategy. He speaks with Sara Eisen and Erik Schatzker on Bloomberg Television's "InsideTrack." (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.

Extremely volatile Markets

Marc Faber : "we are in extremely extremely volatile times " , " and exactly why it happened , there is not one single factor but a range of factors , the intervention inside the governments and artificially low interest rates " says Marc Faber the market rally will not benefit the average household ,Mark Faber explains

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 Bonds Should Be Rated Junk Status

Dr. Marc Faber, editor and publisher of the Gloom, Boom and Doom Report, told CNBC, "Between 2000-2011 US debt has grown three times and the expansion of the debt will continue and what the official statistics don't show you are the un-funded liabilities that are growing at a much faster rate than the official deficit."

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 - Fox Business News - 17 January 2012

Marc Faber - Fox Business News - 17 January 2012 : Expect More Quantitative Easing in Europe, U.S. Marc Faber of the Gloom Boom and Doom report believes there will be a QE3, and discusses how to position oneself for that. Highlights: The news follows events. In other words, the downgrades were already discounted by the bond markets in Europe. So when the news came out, it had no impact. Actually, the markets were kind of relieved. Eventually, you want to be positioned more in equities than in bonds. And you want to own some precious metals as well.

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

We have worsening geopolitical and economic conditions

Marc Faber : essentially what you could get in the world is worsening geopolitical and economic conditions. Let's say Israel attacks Iran. It's a negative event basically but it could be counted by monetisation everywhere in the world in other words liquidity injections. So stocks could go up while conditions worsen. This usually happens when you massively inflate the quantity of money but from the mentally sound market in my opinion will only come about when the system has been cleaned and moved down after the financial crises of 2008 is essentially just painting the building with fresh paint but we haven't addressed the fundamental problems of the Western world which is an over indebted society.



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

Gold correction phase is not completely over

Marc Faber : We have to distinguish between precious metals and industrial commodities. My concern is that the Chinese economy is going to be weaker than is expected and that the demand for industrial commodities will probably disappoint. So I am not particularly keen on buying industrial commodities at this stage. In the case of gold, as you know we had a 10-year bull market and we peaked out in dollar terms on September 6. 2011 at USD 1,921 per ounce at which stage the gold price had somewhat overshot on the upside and we are in a correction phase. I happen to think that the correction phase is not completely over but recently sentiment on both silver and gold have turned very negative. We may have a trading rebound year -trading rally and then some further weakness into possibly February-March and then probably a major low. Then the question will be whether the precious metals rally again and will they exceed the peak of 2011 or not.



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 : The ECB is already monetizing

Marc Faber : .....I think what's happened through back door actions the ECB is already monetizing.Because if the ECB wasn't already monetizing, then the euro would be strong. they have increased their balance sheet and so forth. so I think that much of any downgrade is already priced in. the question is whether the downgrades will be sufficient. - 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.

S&P downgrades 9 Eurozone credit ratings

Marc Faber - CNBC 13 January 2012 : Standard & Poor's has downgraded several of the eurozone's leading economies, which means that it will be more expensive for them to borrow in future. It's stripped France of its AAA credit rating. The ratings of Italy, Spain and Portugal have also been cut by two notches. Dr. Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, discusses the S&P downgrade of France and other European countries. He believes they should be downgraded even further.

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 geopolitical and economic conditions in the world are wosening

Marc Faber : This is a good question because essentially what you could get in the world is worsening geopolitical and economic conditions. Let's say Israel attacks Iran. It's a negative event basically but it could be counted by monetisation everywhere in the world in other words liquidity injections. So stocks could go up while conditions worsen. This usually happens when you massively inflate the quantity of money but from the mentally sound market in my opinion will only come about when the system has been cleaned and moved down after the financial crises of 2008 is essentially just painting the building with fresh paint but we haven't addressed the fundamental problems of the Western world which is an over indebted society.




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

My concern is that the Chinese economy is going to be weaker than is expected

Marc Faber : We have to distinguish between precious metals and industrial commodities. My concern is that the Chinese economy is going to be weaker than is expected and that the demand for industrial commodities will probably disappoint. So I am not particularly keen on buying industrial commodities at this stage. In the case of gold, as you know we had a 10-year bull market and we peaked out in dollar terms on September 6. 2011 at USD 1,921 per ounce at which stage the gold price had somewhat overshot on the upside and we are in a correction phase. I happen to think that the correction phase is not completely over but recently sentiment on both silver and gold have turned very negative. We may have a trading rebound year -trading rally and then some further weakness into possibly February-March and then probably a major low. Then the question will be whether the precious metals rally again and will they exceed the peak of 2011 or not.


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

You can be sure that there will be more QE in the US

Marc Faber : To make forecasts about free markets is very difficult. The free market and that perfectly functioning market is a market where no market participant has dominated the market but today you have a manipulated market. It is the governments which intervene continuously to influence the price of money in other words interest rates and fiscal policies so to make any predictions of political issues we can know exactly how far the ECB in Europe will monetize and at what stage QE3 will come about in the US but if the S&P drops another 10% you can be sure that there will be more QE in the US. So the markets would be supported by additional liquidity injections. - 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 Chinese economy may weaken than is expected

Marc Faber : We have to distinguish between precious metals and industrial commodities. My concern is that the Chinese economy is going to be weaker than is expected and that the demand for industrial commodities will probably disappoint. So I am not particularly keen on buying industrial commodities at this stage. In the case of gold, as you know we had a 10-year bull market and we peaked out in dollar terms on September 6. 2011 at USD 1,921 per ounce at which stage the gold price had somewhat overshot on the upside and we are in a correction phase. I happen to think that the correction phase is not completely over but recently sentiment on both silver and gold have turned very negative. We may have a trading rebound year -trading rally and then some further weakness into possibly February-March and then probably a major low. Then the question will be whether the precious metals rally again and will they exceed the peak of 2011 or not. - 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.

Marc Faber latest CNBC interview - 02 Jan 2011

Dr Marc Faber was interviewed on Bazaar on CNBC-TV18 this 2nd January 2012 . Marc Faber, editor and publisher, The Gloom, Boom & Doom Report warned that the Sensex may bottom out between 12000-15000 levels."We have to clarify the statement about how bad it was for equities worldwide because the US market was flat and it significantly outperformed most other markets in the world in particular emerging economies stock markets. This resembles the underperformance we had in 2008 that made the major buying opportunity. What we will have in 2012 is initially maybe some maybe further weakness in emerging economies against the US market and then a major low in emerging stock markets, including, India. I was looking for India to bottom out the Sensex between 12,000 and 15,000 and we are getting there slowly." 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.