Marc Faber: I do not believe there will be a fiscal cliff

Marc Faber: I do not believe there will be a fiscal cliff. What will happen is that there will be some cosmetic spending cuts which will amount to no spending cuts in reality. There will be some cosmetic tax increases that will touch really a minority and the irrelevance on a fiscal deficit that officially is running around $1.3 trillion, but if you added the unfunded liabilities that accrue every year, the fiscal deficit will be more likely above $5 trillion. So even minor tax increases on the super rich will bring in annually a maximum of $5200 billion. So the total deficit, whatever they will agree upon, will have a meaningless impact and spending cuts will come back dated in 10 years time. So they will be quite irrelevant.- 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 – The Fundamental Fact About Oil

Marc Faber : “One hears all kinds of forecasts that oil prices will tumble and some are forecasting oil prices to go up substantially. There are all kinds of views. The fundamental fact is simply that not only for oil but for other commodities as well the production cost has risen very substantially. So I think that new oil will cost at least around $60-70 a barrel for the exploration and the capital investments.”
“Therefore, I do not think that oil has a huge downside risk, but we live in a volatile world. In July 2008 we were at $147 a barrel and within six months, we dropped to $32 a barrel in December 2008. I would not want to necessarily go short on oil for the simple reason that the situation in the Middle East is deteriorating at an accelerating pace.”
- Marc Faber in an ET Interview

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 – Recommended Christmas Reading List

This year, I reread some books I had not looked at for years.
Milton Friedman’s “Capitalism and Freedom” is an excellent collection of brief essays about a wide range of subjects. It’s a reminder that larger and larger involvement of government in a society comes at a cost. The larger the government is, the more economic and financial volatility, the less growth and the less personal freedom will follow. This is the book you must give for Christmas to your entitlement-spoiled children.
I particularly recommend Will Durant’s “The Greatest Minds and Ideas of All Time,” edited by John Little, for hedge-fund managers who have their eyes glued to Bloomberg terminals all day. In a few chapters, Durant — whose seminal work is “The Story of Civilization” and whom I consider one of the great historians — expresses his views about the “The Ten ‘Greatest’ Thinkers,” “The Ten ‘Greatest’ Poets,” “Twelve Vital Dates in World History,” “The One Hundred ‘Best’ Books for an Education” and other subjects. Durant also had a very human touch. When asked in an interview, “Of all the characters populating ‘The Story of Civilization,’ whom would you have most liked to have known?” he responded, “Madame de Pompadour … because she was beautiful, she was charming, she was luscious — what else do you want?” (I agree, although my choice would have been Cassandra.)
The third book I am still reading — Joseph A. Tainter’s “The Collapse of Complex Societies.” It’s a difficult read and there’s no hurry for me to finish it since Tainter observes “that the problem is not that states collapse (for this happens constantly) but rather that some states last so long.” So let us be cheerful for the U.S. as its society will only collapse once the Facebook generation becomes mature and completely brain-damaged.
- Marc Faber excerpt from 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 Forecasts Keynesian Catastrophe for Global Economy

Marc Faber explains his views and why the world economy is heading for a catastrophe. Possible opportunities are likely to emerge for institutional investors and nimble traders. Marc Faber discusses what opportunities are likely to emerge for institutional investors if sovereign debt continues. He assesses the possible impact of social and political unrest in North Africa and the Middle East, and how hedge funds can invest in emerging 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.

Marc Faber - Economic Times ~ India Inc doing well despite weak macros

India's GDP growth at 5% or 6% is better than no growth in Europe, US: Marc Faber - Economic Times

ET Now: You have recently made a statement that gold is a must have in every individual investor's portfolio. What premise have you made that call on?

Marc Faber:
Basically we are in an environment where central banks are monetising debts and where the balance sheets of central banks are increasing, and this will continue, especially in the United States and Europe.
We are also in an environment where in the long run, a lot of sovereign debts will either not be paid or will have to be inflated away. So owning some physical gold is a prudent insurance. I am specifying here 'physical gold' because one wants to protect oneself as an investor for the potential of a systemic collapse of the financial system.
ET Now: The FII flows to the Indian markets have grossed 1 lakh crore mark. What explains the strong flow of funds to emerging markets like India?
Marc Faber:
In general, investors realise in the world that we are in a changing environment where emerging economies are becoming more important relative to the rest of the world. So we have to, from time to time, rebalance portfolios into emerging economies. Now I am not sure that I would necessarily buy the Indian market right here, but even if India only grows at 5% or 6%, it is still much better than no growth in Europe and hardly any growth in the United States.
ET Now: Some strategists are making a strong case that global crude oil price prices may weaken significantly from hereon. Do you agree with that forecast?
Marc Faber:
One hears all kinds of forecasts that oil prices will tumble and some are forecasting oil prices to go up substantially. There are all kinds of views. The fundamental fact is simply that not only for oil but for other commodities as well the production cost has risen very substantially. So I think that new oil will cost at least around $60-70 a barrel for the exploration and the capital investments.
Therefore, I do not think that oil has a huge downside risk, but we live in a volatile world. In July 2008 we were at $147 a barrel and within six months, we dropped to $32 a barrel in December 2008. I would not want to necessarily go short on oil for the simple reason that the situation in the Middle East is deteriorating at an accelerating pace.

ET Now: What about the Indian markets? Are they heading to newer highs at 15 or 16 times forward earnings that they are trading at and compared to the other emerging markets, how is India looking like, as a trade?
Marc Faber:
We don't have uniformed performance among emerging economies. You have the Chinese market, which is down from 6000 in 2007 to 2000, and you have markets like the Philippines, Indonesia, Thailand and Malaysia that have made new highs, and so it is not uniformed. In India, you do not have a particularly good macroeconomic background. On the other hand, corporations are doing reasonably well. So I have some investments in India.

ET Now: What is the significance of the fiscal cliff for emerging markets like India?
Marc Faber:
I do not believe there will be a fiscal cliff. What will happen is that there will be some cosmetic spending cuts which will amount to no spending cuts in reality. There will be some cosmetic tax increases that will touch really a minority and the irrelevance on a fiscal deficit that officially is running around $1.3 trillion, but if you added the unfunded liabilities that accrue every year, the fiscal deficit will be more likely above $5 trillion.
So even minor tax increases on the super rich will bring in annually a maximum of $5200 billion. So the total deficit, whatever they will agree upon, will have a meaningless impact and spending cuts will come back dated in 10 years time. So they will be quite irrelevant.

ET Now: Your view on emerging market currencies and the rupee in particular?
Marc Faber: If that is the case, I would argue that the dollar has a chance to actually appreciate, especially against emerging market currencies, but I have some reservations about this optimism. I think that natural gas and the increase in oil production in the US is just one plus factor for the US compared to many negative factors such as ObamaCare.

View the original article here

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 not a bubble

Gold is not even close to a bubble yet. Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.p> Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

When interest rates go up

Eventually one day when interest rates go up, the government will monetize the debt and the inflation will go up.

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

Beware of equities in 2013

2013 will not be a favorable year for holders of assets. Investors’ expectations about future returns on their assets are far too optimistic. In a world that currently hardly grows investors will need to reduce their future return expectations.

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 are in an environment where central banks are monetising debts and where the balance sheets of central banks are increasing

Marc Faber: Basically we are in an environment where central banks are monetising debts and where the balance sheets of central banks are increasing, and this will continue, especially in the United States and Europe. We are also in an environment where in the long run, a lot of sovereign debts will either not be paid or will have to be inflated away. So owning some physical gold is a prudent insurance. I am specifying here 'physical gold' because one wants to protect oneself as an investor for the potential of a systemic collapse of the financial system. ET Now: The FII flows to the Indian markets have grossed 1 lakh crore mark. What explains the strong flow of funds to emerging markets like India? Marc Faber: In general, investors realise in the world that we are in a changing environment where emerging economies are becoming more important relative to the rest of the world. So we have to, from time to time, rebalance portfolios into emerging economies. Now I am not sure that I would necessarily buy the Indian market right here, but even if India only grows at 5% or 6%, it is still much better than no growth in Europe and hardly any growth in the United States.

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: Krugman and Keynesians Should Move To North Korea

In a new film called "The Bubble", Faber criticizes the Federal Reserve and U.S. Dollar New York, NY - Famous investor Marc Faber is featured in a new film about the ongoing financial crisis. Faber is one of many interviews in “The Bubble”, a documentary that interviews the experts that predicted the 2008 crash and asks what happens next. Other cast members include Jim Rogers, Peter Schiff, Ron Paul, Marc Faber, Doug Casey, Jim Grant and numerous others. The script is written by Dr. Tom Woods and based off his New York Times best seller “Meltdown.” Renowned bearish investor David Tice is the Executive Producer. In the film, Faber says that the global economy is decelerating very rapidly. He said, “In my view we have too much debt in the household level, the student level and the government level.” Faber predicted deficits over a trillion dollars in America for the next 10 years. He says this will will hurt economic growth immensely. “I'm ultra bearish on paper money.”, said Faber. “There is a bubble in government bonds. People will realize that their money will lose purchasing power and will no longer trust to buy government bonds, notes or bills.” Faber's views on government debt are linked to inflation. He said, that consumer price increases around the world are much higher than what the government is reporting. In the U.S., Faber estimates that consumer price levels are rising by 5 to 8 percent annually. The interview has some interesting quotes from Faber that might be surprising to some. He made his distaste of Keynesian economists and central bankers clear by saying, “ Krugman thinks the fiscal deficits are too small. One of the problems of the crisis is that it was called by government intervention with fiscal and monetary measures. Now they tell us we didn't intervene enough. Yet, if they really believe that, they should go and live in North Korea where they have a communist system.” The raw footage of the interview is available online at http://www.TheBubbleFilm.com. Updates about the film, including information about its upcoming release, can also be found at http://www.Facebook.com/TheBubbleFilm.

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

Continuous interventions by Governments have led to greater instability

Marc Faber : "Continuous interventions by governments with fiscal and monetary measures, instead of smoothing the business cycle, have actually led to greater instability. The short-term fixes of the New-Keynesians have had a very negative impact, particularly in the United States. Faber said to the LBMA The ANNUAL CONFERENCE of the London Bullion Market Association recently

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: S & P 500 could fall to 1180

The broader index S & P 500 index of blue-chip Dow Jones Industrial Average may register a decline of 20 percent from their peaks in the recent investor Marc Faber veteran, known for his apocalyptic prediction. "I think we face a global slowdown in world economies and disappointing corporate results and would not be surprised to see a decline in indices of, say, 20 percent," said Faber in an interview with financial publication CNBC. "It's not a big drop. If you take such a decline does not necessarily get out of bed in the morning, "says the specialist. In mid-September broader index S & P 500 peaked at a level of 1 475.51 points, while the blue-chip Dow rose 661.87 points to 13. Decrease of 20% from these levels translates to drop to 1,180 points for the S & P 500 and 10,930 points. Despite the expected third wave of Fed stimulus, Faber does not believe that monetary incentives alone will affect the extent of the economy. They can cause side effects, but not empirically proven that throwing so much money in the system to solve the problems her.

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

Raw footage of Marc Faber interview from The Bubble.

Mark Faber predicted the housing crash years before it happened. Ben Bernanke didn't see it coming until it was there. There is much trash on youtube, you are right. But every now and then a gem can be found as is the case here

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 Gold

Marc Faber is one of the very successful investors on earth. He recently explained his view on the monetary policies of the developed regions in the world. Obviously he is no fan of the  Keynesian way of thinking which is applied by the central banks in the developed regions.
The Keynesian policy considers easy money as a way out of economic recession and deflation. They argue that money creation smoothens out the business cycle. In his presentation, Marc Faber demonstrates that these kind of interventions achieve exactly the opposite: they make the business cycles much more violent, create extreme fluctuations in economic activity and result in far more financial volatility. In his opinion, the essential problem is that the Keynesian way of thinking tries to solve long term structural problems with short term fixes, with an emphasis to create bubbles to help the economy. However, Mr Faber notes that bubbles usually hurt the majority of market participants.
Based on the US Fed philosophy you can’t identify bubbles, but if they burst you can take measures to support asset prices by flooding the markets with liquidity (read: by “dropping dollar bills from an helicopter” in order to prevent deflation). In line with that way of thinking, the Fed has slashed interest rates  and created liquidity over the last 30 years on a continuing basis.
“Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors.”
Marc Faber believes that these policies have one big problem: central banks simply cannot determine what will happen with the money that is created. The key point is that inflation does not necessarily occur in wage inflation or in consumer prices. The additional liquidity however can create unpredictable sorts of inflations. For instance, it can result in a housing boom in country X, or in employment wage inflation in country Y, or in commodity price inflation in country Z. Furthermore, not every price increase will occur at the same rate, with the same intensity, at the same time. Those are the “unintended consequences” of money printing, which Marc Fabers discusses in detail with a lot of examples in his presentation.
“High monetary inflation brings distortions in the price mechanisms and volatility.” One of the examples Mr Faber used in his presentation is the Mexican deflation, in which the currency debased sharply against eg the US dollar between 1979 and 1983. From the lows in 1983 till its highs in 1988, the Mexican equity market in US dollar increase  44-fold!
Marc Faber his conclusion: money printing brings more and unpredictable volatility. We saw a major low in equities in March 2009 which we probably won’t see again because “every drop”  comes with a new round of QE. Going forward, he believes that owning GOLD is a must for every individual and investor. Gold is not in a bubble as we haven’t seen rapid acceleration of prices (as an example, look back at 1979 where the gold price doubled in 3 months).
Source: Marc Faber Believes That Owning Gold Is A Must
 Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Owning Physical Gold Is A Prudent Insurance

Basically we are in an environment where central banks are monetising debts and where the balance sheets of central banks are increasing, and this will continue, especially in the United States and Europe. We are also in an environment where in the long run, a lot of sovereign debts will either not be paid or will have to be inflated away. So owning some physical gold is a prudent insurance. I am specifying here 'physical gold' because one wants to protect oneself as an investor for the potential of a systemic collapse of the financial system. - in Economic 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.

Crude Oil Prices Outlook

One hears all kinds of forecasts that oil prices will tumble and some are forecasting oil prices to go up substantially. There are all kinds of views. The fundamental fact is simply that not only for oil but for other commodities as well the production cost has risen very substantially. So I think that new oil will cost at least around $60-70 a barrel for the exploration and the capital investments. Therefore, I do not think that oil has a huge downside risk, but we live in a volatile world. In July 2008 we were at $147 a barrel and within six months, we dropped to $32 a barrel in December 2008. I would not want to necessarily go short on oil for the simple reason that the situation in the Middle East is deteriorating at an accelerating pace. - in Economic 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.

I Do Not Believe There Will Be A Fiscal Cliff

I do not believe there will be a fiscal cliff. What will happen is that there will be some cosmetic spending cuts which will amount to no spending cuts in reality. There will be some cosmetic tax increases that will touch really a minority and the irrelevance on a fiscal deficit that officially is running around $1.3 trillion, but if you added the unfunded liabilities that accrue every year, the fiscal deficit will be more likely above $5 trillion. So even minor tax increases on the super rich will bring in annually a maximum of $5200 billion. So the total deficit, whatever they will agree upon, will have a meaningless impact and spending cuts will come back dated in 10 years time. So they will be quite irrelevant. - in Economic 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.

Investing: It Is Very Difficult To Beat Compound Interest

Marc Faber : I think in general it is very difficult to beat compound interest. If you had invested money at the time of the birth of Christ at just 5%, you would have a higher net worth today than that of the entire world. - in Trading The World`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.

Marc Faber : Selling Gold? I Know Better!

Marc Faber : "I keep in my toilet a picture of Mr. Bernanke. And every time I think about selling my gold, I look at it and I know better!" - in Twitter

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 From The Bubble Film

The Bubble - Raw footage of Marc Faber interview ,Raw footage of Marc Faber interview from The Bubble.

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