Gold is easier to carry than a lamborghini

Gold is down 30% from its 2011 peak of $1,921, but has far outperformed financial assets since 1999. A correction was overdue. I have about a 25% allocation to gold and buy some every month. I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable. Gold is easier to carry than a Lamborghini.

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 is the most important economy not US

China is the most important economy not US For me the most important economy in the world is China and not the US.

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

Chinese economy affects the world economy

It looks as if the Chinese economy growth has de-accelerated very significantly. It also looks like we have a gigantic credit bubble in China. If China grows at 3 percent or 4 percent instead of trend-line growth of 10 percent, it will have a huge demand on industrial commodities. At the same time it will have a huge impact on the income of countries producing commodities such as Australia, Africa, Central Asia, Middle East. if these countries have less income, they buy less from China, Europe and America. The overall demand declines and you have an earnings contraction.

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

Faber says India stocks not bottomed yet

We are probably at the beginning of a more significant asset class deflation. If you look back, we had huge increases in asset prices, whether it is real estate, equities, bonds, gold or commodities. When you print money, prices do not go up evenly and they do not fall all at the same time. So, the money flowed between 1996 and March 2000 into high-tech NASDAQ stocks and also in India. Then this was deflated and post 2000, we had in the US the colossal credit bubble where the money flowed mostly into housing which was deflated after 2007. After that, we had a huge flow of funds into emerging markets and emerging market bonds. I think that will also be deflated as in some cases we have already gone down quite a bit. In case of India, the Indian ETF is now down 32% from the November 2010 high. It has performed miserably, relatively to the US. So the market will bottom out, but it is too early to buy anything at the present time.

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

Chinese Economy is Weak

“The Chinese economy is much weaker than the official statistics suggest. At the present time, the Chinese economy is, at the very best, growing at 4% per annum. Without huge credit expansion there would be no growth at all.” - Source, Market Watch:

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

Will Bernanke Taper QE?

"If you say that if he means what he says, then you believe in Father Christmas. He said if the economy does not meet the expectations of the fed in one years' time, they will consider additional measures. In other words, if the economy has not fully recovered by mid-2014, more QE will be forthcoming. As I said already three years ago, we are going to go with the Fed to QE99." - Marc Faber during a recent Business Insider 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.

Downside Risk Everywhere

Dr. Marc Faber, the Swiss fund manager and publisher of the Gloom, Boom and Doom Report always enjoys illuminating the Wall St. talking heads and displaying his awesome command of numbers, dates and predictions. The Fed's 'tapering' comments have ramped up market volatility and Faber gives some advice for short and long-term strategies. For example: "The best course of action is to actually not buy anything, but rather to reduce positions on a rebound," Faber said: Also, "New highs in emerging markets and in high yield bonds are out of the question, and if it happened in the S&P, which I don't believe, it would be driven by very few stocks. Longer term, the market is far from oversold. It still has considerable downside risk everywhere," he said. Finally, buy more gold......he is. - Source, The Market Oracle:

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