Most Stock Markets in the world are correlated to the US Market

I think that most stock markets in the world are correlated to the US market. I believe that if the US S&P500 drops 10 percent, 200 points for sure other markets will also go down.
But is it possible that because of the weak economy in China the Chinese also print money which is a possibility. If they did that, the Yuan would weaken. [The Chinese Stocks] have been essentially under-performing the US since 2006 and so my belief is that if China decided to print money and currency weakened , money would flow into equities.
The other reason I am reasonably positive is the valuations in Hong Kong is relatively depressed, because you can buy property companies that sell at a discount of 40 to 50 percent of Net Asset Value. Now the Net Asset value may not be correct as property prices in Hong Kong could decline as they have over the last 12 months. But still you have some cushion of security. Moreover Hong Kong shares have a relatively high dividend yield compared to other markets.
So if someone says I'm very bullish on the US stock market, I would rather own Hong Kong shares instead of S&P because they have better value.




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 think that social media stocks are in a bubble phase

I think that social media stocks are in a bubble phase. I also think that a lot of biotech stocks are in a bubble phase. Aside from the fact that the entire market is in a bubble phase, these are two sectors that I would regard as highly priced




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

Countries with surpluses investing mostly in Canada, Australia

What happens is some of these countries (such as Soviet Union, Eastern Europe, India) have large export surpluses, have reserves built up, then they come back into Europe and USA, but mostly into Canada, Australia to purchase assets for diversification reasons.







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 West and Japan : Current generation not as fortunate as previous

These people [current generation] will not enjoy the compounding impact that I enjoyed having started to work in 1970 when bond yields were 6% and they went to 15% and so forth.

 So during that period of time wealth was accumulating very rapidly plus we had a huge boom in real estate and in equities and bonds between 1980 and 2007. That is not going to happen again.






 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 gloomy on prospects for Western World

We are in a world that is driven by money printing and, in general, I believe the standards of living for many people in the Western world will continue to decline as they have declined over the last 20 years.










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 on Christmas and humor

Christmas is a time for reflection. It must also be a time for humor and laughter.
Bill Cosby opined that, “Through humor, you can soften some of the worst blows that life delivers. And once you find laughter, no matter how painful your situation might be, you can survive it,”
Chamfort wrote that, “The most wasted day of all is that on which we have not laughed,”
Seneca observed that, “It better befits a man to laugh at life than to lament it,”
Ludwig Wittgenstein thought that, “Humor is not a mood but a way of looking at the world” whereas Ellen Glasgow pronounced that, “First I was an idealist (that was early - fools are born, not made...); next I was a realist; now I am a pessimist, and, by Jove! if things get much worse I'll become a humorist.”










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 was among the first to start a Russian fund

I have from time to time invested in Russia. I was the founder of I think the second Russian fund 'FireBird' with my partner and then they wanted me to sell out in 97 and so I sold out.


 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 impact on Commodity Prices

I think that investors are not sufficiently aware that the Chinese economy is far more important for other emerging economies than the United States because China is a large importer of resources. In other words, iron ore, copper, zinc (inaudible). And at the same time, they are a huge exporter to commodity producers of their own manufactured goods, as well as Korean exports. The commodity producers are much larger than Korean exports to the US.

So if the Chinese economy slows down, commodity prices - industrial commodity prices are likely to remain under pressure. They've already come down a lot. They remain under pressure and the resource producers have less money. In other words, the Brazilian goes into recession. The Middle East does not grow as much as before. Central Asia, Africa and so forth all contract, and then they buy less from China and you have a vicious cycle on the downside.

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

Can foreigners own companies in Vietnam

There are restrictions. Non-Vietnamese investors can't own 100% of the shares, but in time the rules will be liberalized.



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 on Asian family business practice changes

The attitude has changed in Asia: Many family businesses used to be dishonest but now are more honest. They realized that by being relatively clean, they could earn a higher stock-market valuation.



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

America blackmailed Switzerland and other countries

What worries me is this continuous blackmailing of countries by the America. Like the Swiss, they have to divulge the account names of Americans who had accounts in Switzerland and so forth. I think the Swiss government did a lousy job. They should have refused to divulge this information.
Anyways there was enough pressure and the pressure rose because Swiss companies have large holdings in America. The Americans said, you don't disclose us the names, we close down your shop in America and the banking lobby of course obliged.


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

How can companies have rising earnings, yet not provision sufficiently for their pension funds?

Faber: Precisely. Looking at 10-year annualized returns for U.S. stocks, the Value Line arithmetic index has risen 11% a year. The Standard & Poor's 600 and the Nasdaq 100 have each risen 9.4% a year. In other words, the market hasn't done badly. Sentiment figures are extremely bullish, and valuations are on the high side. But there are a lot of questions about earnings, both because of stock buybacks and unfunded pension liabilities. How can companies have rising earnings, yet not provision sufficiently for their pension funds?



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

Goldman Sachs is very good at predicting lower prices when they want to buy something

MARC  FABER: I would say Goldman Sachs is very good at predicting lower prices when they want to buy something. But that is a (inaudible) I would say, yes, we are down from $1,900 to $1,160 or something like this, and it’s been a miserable performance since 2011. However, from the 1990 lows we’re still up more than four times. So I just looked at performance tables over 10 years and 15 years. Gold hasn’t done that badly, has done actually better than stocks.
Now I personally, I think that we may still go lower. It’s possible. I’m not a profit, but I’m telling you I want to own some gold because I don’t trust the financial system anymore. I think the whole thing is going to collapse one day and then I’ll be happy to have some assets. But of course the custody (ph) is important. I wouldn’t hold my gold at the Federal Reserve because they will lend it out. I wouldn’t hold my gold in the US at all.






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

Low Oil Prices Impact on US Economy

Marc Faber, editor of "The Gloom, Boom & Doom Report", spoke with Bloomberg TV's Trish Regan today at length on a wide variety of topics. He commented on Bill Gross' remarks about deflation (noting "the concept of inflation and deflation is frequently misunderstood") and explained why he thinks Japan is engaged in a Ponzi Scheme (since "all the government bonds that the Treasury issues are being bought by the Bank of Japan"). He also spoke on oil prices (warning that "if oil prices went lower, it may actually have an adverse impact on the US economy"), gold and Goldman Sachs ("Goldman Sachs is very good at predicting lower prices when they want to buy something") and the midterm elections (adding that "I don’t think it really matters, [both parties] have blown money away.") But it is discussion of the independence of the Fed with Alan Greenspan that will raise the most eyebrows as it seems yet another conspiracy theory dies at the hands of the fact police.





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 Keynote speaker in Muscat, Oman on Dec 4 2014

Bank Muscat is to host economist and investment analyst Marc Faber on December 4, 2014 as part of the bank’s series of seminars. Doctor Doom aka Marc Faber is to share his insights on the state of world economy and financial markets.

Faber studied economics at the University of Zurich and got his PhD at the age of 24. He publishes a widely-read monthly investment newsletter ‘The gloom boom and doom’ report which highlights unusual investment opportunities, and is the author of several books, including ‘Tomorrow’s Gold – Asia’s Age of Discovery’ which was first published in 2002 and highlights future investment opportunities around the world. It was for several weeks on Amazon’s bestseller list.

On his perceptions about the global economy in 2015, Faber told the bank that it would be flat to down in 2015 as there was no growth in Europe, coupled with decelerating growth in most emerging economies and anaemic growth in the US, which might well go into reverse.

The dollar was likely to strengthen further in 2015 against the euro and the yen. Near-term, he felt that there would be a correction and also thought that the Fed was unlikely to increase rates in 2015.

About the Middle Eastern economies in general and the GCC in particular, Faber said the decline in oil prices was likely to lead to a slowdown in these economies.






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 Gold Prediction 2015: Physical Bullion or Gold Miners?

Marc Faber shares his opinion on whether gold will fall below $1,000 in 2015 and whether owning physical bullion or mining shares is a better bet. Do you agree with his forecasts?



 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 on Global Stocks, Economy, Gold Prices

 Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt Miller, Scarlet Fu and Olivia Sterns on Bloomberg Television's "In the Loop." Bloomberg View columnist Barry Ritholtz also speaks. (Ritholtz is a Bloomberg View columnist. The opinions expressed are his own. 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.

Many Stocks Are Already Down Marc Faber

Oct. 10 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt.















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 : Gold Prediction 2015 - Physical Bullion or Gold Miners

Marc Faber : Gold Prediction 2015 - Physical Bullion or Gold Miners




















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

Vietman a better investment than China at the moment

It [China] hasn't been a good place to invest for stock investors since 2006, whereby this is a comment based on the market index. If you bought Internet-related stocks in China—like Baidu and so forth—a few years ago, you've done very well. So we have to distinguish in the world that some stocks have done well and some have done badly.
In general, I would say that the stock market in China is now not particularly expensive. It's been going down since 2006, essentially. At the same time, we have very questionable accounting standards. We have had a huge credit bubble in the last five years. How this credit bubble will be deflated and what the impact will be on the economy, we don't know yet for sure. I can hardly think that it will be particularly favorable. I think that Chinese stocks may not go necessarily much lower, but I doubt that they'll go up substantially.
If you want to play a recovery in China, then I think you're better off buying Hong Kong shares, because in Hong Kong, you have reasonably good corporate governance, you have very-well-managed companies, which are owned largely by families. So the families are ready to be conservative in their dealings. They have low leverage. So if you believe that China is bottoming out and going up, I would own some Hong Kong shares, as I do.
Another recovery play—a market that has a similarly poor performance to China over the last few years—is Vietnam, which is very cheap, which has deleverage and improving fundamentals in terms of growing trade surplus, rising exports and so on. So I think Vietnam is better than China itself, if you believe in the Chinese recovery.










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 Government Will Go Bust

In this clip of Marc Faber on CNBC, he says that in general, markets were quite oversold when the markets bottomed in 2009. Right now, many stocks have risen by more than 100%. This signals a very overbought correction, especially in the United States. Whether it will be a correction or whether stocks will hit new lows is not certain. We can never be too certain about the future. The market to some extent is already pricing in the fact that bonds are no longer very high quality. The United States government will eventually go bust – massively so. But it’s a question of time. Marc Faber on CNBC sya that if they can print money and if people are willing to accept that money, it can keep going for a long 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.

Asian countries to remain relatively peaceful

Marc Faber : Basically I always own some shares, most of my share holdings are in Asia. I would like to point out something, the Dow Jones is flat for this year. In Asia, the Indian market is up 22 percent year to date. The Thai market is up 20 percent in dollar terms, Jakarta is up 24 percent. Philippines up 18 percent, Karachi up 17 percent and so forth. I worry about the geopolitical tensions but in general I think all the Asian countries are today so China-centric that there wont be a military conflict, there will be rattling and disputes and so forth. But the US doesn't really have the power to really wage a war in Asia, that we have to be very clear.



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

Money Printing leads to Higher Asset Prices

The Federal Reserve, each time there was a problem they flooded the system with liquidity, starting essentially with LTCM crisis in 1998, the Dot-Com crash after March 2000 and the Housing bubble after 2006.
So I suppose that they would again try to support asset prices. As you know one of the problems of this expansion which by historical standards very moderate in terms of momentum and it hasn't really trickled down to large segments of the population.
One of the problem is that because of the expansionary monetary policies and asset purchases, numerous assets are not affordable by the majority of the people. So if the Fed decides to print money to support asset markets, the impact may be negative on the economy because the prices would start to rise.



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 Global Enconomy is Not Healing

“Well I think it’s quite funny because everywhere you go, up to a little while ago, there was great optimism about this recovering the global economy when in fact Europe is not recovering and in fact it is slowing down. In Asia and in other emerging economies we have a very meaningful slowdown in economic activity. I wouldn’t call all the emerging economies being in recession yet, but it’s just very little growth in present time in real terms and in some cases it has been a downturn, a meaningful downturn, like say in retail sales in Hong Kong or in Singapore…so I don’t believe that the global economy is healing, all that was in the context of massive interventions with fiscal and monetary measures by the authorizes.”
















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 income in the United States for households are down

If you look at a broad number of asset prices - Bonds, Equities, Real Estate, Art Prices, Collectibles, Commodities, in general the prices are elevated. Ofcourse yes I am aware that Gold has corrected but in general asset prices are higher than they were Ten years ago. Real income in the United States for households are down, in other words prices have gone up more than wages. Now the only asset class that relatively and absolutely depressed are Gold mining shares and Silver mining shares. Even large Mining groups such as Barrick and Newmont mining have tumbled and at distressed levels. And as a contrarian or as a value investor you would have to say, these are not momentum stocks and they are building a base. Here I find some reasonably good values compared to other asset classes.














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

Smart Investors and Gold

I believe that smart investors need to have their own gold reserves. I would never trust anyone to hold these gold reserves on my behalf because they can lease it out or they can sell it.



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 Price could go below $1000/oz

 Marc Faber: Look. The forecasting record of people is horrible, in particular, the forecasting record of the Federal Reserve. So, I don't know, maybe it will go below $1,000 but my sense is that it will not stay below $1,000. .... I would use the current weakness as a buying opportunity. ... I'm telling everybody, you as an investor, and me as an investor, we cannot trust the government. ... I am my own central banker. I keep my own physical gold. I do not trust anyone of these FCKs.




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's Property Price Surge, Credit Boom Are `Danger Signals,' Faber Says

China’s “excessive” credit expansion and surging real estate prices are “danger signals” that growth is peaking, investor Marc Faber said. “There are some symptoms of a bubble building in China, with the increase in foreign exchange reserves, rapidly rising property prices,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview today. “From here on, the China economy will slow down regardless. Whether it will crash this year or later, I don’t know.”



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

Central Banks intentionally creating Bubbles in Markets

There are many reasons the Western economies are slowing down. One is government spending. Between 1870 and 1910, nowhere in Europe or in the U.S. was it above 15% of the economy. Now, U.S. government spending, including states and municipalities, is at around 40% of gross domestic product (GDP). In France, government spending is 57% of GDP.
The larger the government becomes, the less economic growth there will be. So Dr. Greenspan and I agree on the problem, but who financed all these entitlements? I believe the central banks with their artificially low interest rates are deliberately creating bubbles even though in a bubble, the majority loses, and the minority makes a lot of money.




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

Japanese money printing has helped global stock markets

Two years ago, I was of the view that it would be healthy for the market to have a 20 percent correction and that's what I've expected. And many stocks have actually had 20 percent corrections over the last two years. But as I said, a limited number of stocks have driven up the indices. Now of course the indices significantly higher, let me remind you ... in three years, we've almost doubled. If you really believe that in the next few years, every three years the market will double, then go and buy shares because I don't believe that.


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 on the Hong Kong Protests

“Well basically we have these student demonstrations. In my view it is less about democracy and more about the chief executive of Hong Kong being very unpopular with young people and also with other people in Hong Kong. And it is also a social background in the sense that Hong Kong became very prosperous between 1950 and about 10 years ago. Years in which GDP per capita increased enormously and over the last 10-15 years real in other words inflation adjusted per capita incomes have been declining…I believe the outcome will be some sort of compromise where by the chief executive would probably resign.”




 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 : Dr. Greenspan and I agree

Marc Faber : There are many reasons the Western economies are slowing down. One is government spending. Between 1870 and 1910, nowhere in Europe or in the U.S. was it above 15% of the economy. Now, U.S. government spending, including states and municipalities, is at around 40% of gross domestic product (GDP). In France, government spending is 57% of GDP. The larger the government becomes, the less economic growth there will be. So Dr. Greenspan and I agree on the problem, but who financed all these entitlements? I believe the central banks with their artificially low interest rates are deliberately creating bubbles even though in a bubble, the majority loses, and the minority makes a lot of money.- in Gold vs. fiat currency: A conversation with Alan Greenspan


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

Bond yields are un-attractive compared to the past

Frequently, banks will charge you more in fees than you make in interest.

Ten-year government bond yields in Europe are even lower than in the U.S. In Switzerland, 0.46% is the maximum you’ll earn every year for the next 10 years if you hold such bonds to maturity.

Today’s investors won’t enjoy the effects of compounding that I enjoyed, having started my career in 1970 when yields were 6%, on their way to 15%.

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

Workhorse vs Showhorse Stocks

For the benefit of our readers [attached] explains James O’Shaughnessy’s investment strategy. It concluded that high price-to-sales stocks do well in frothy, speculative markets (such as 1967 and the late 1990s) during which performance oriented fund managers are willing to pay any price for ‘concept’ and ‘New Era’ stocks (this is now also the case).
Their subsequent performance however, tends to be dismal - this particularly true when compared to low price-to-sales stocks. O’Shaughnessy further noted that it was more profitable to “choose stocks that are workhorses rather than showhorses.”


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

Japan running a ponzi scheme

Well I think they’re [Japan] engaged in a Ponzi scheme in the sense that all the government bonds that the Treasury issues are being bought by the Bank of Japan. I think the good news is – for Japan is that most countries are engaged in a Ponzi scheme and it will not end well. But as Carlo Ponzi proved, it can take a long time until the whole system collapses.


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 on the Hong Kong Protests

“Well basically we have these student demonstrations. In my view it is less about democracy and more about the chief executive of Hong Kong being very unpopular with young people and also with other people in Hong Kong. And it is also a social background in the sense that Hong Kong became very prosperous between 1950 and about 10 years ago. Years in which GDP per capita increased enormously and over the last 10-15 years real in other words inflation adjusted per capita incomes have been declining…I believe the outcome will be some sort of compromise where by the chief executive would probably resign.”




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

There is No Free Market so long as The governments intervene into the private sector

"As long as governments intervene into the private sector, the free market, and as you know, the U.S. is not yet that bad. But say from 1930 government spending as a percent of the economy has gone from 7.8 percent to now over 41 percent. It compares favorably with France which is now at 57 percent, but the bigger the government is, the less dynamic the economy can be and the less gross there will be. But the governments don’t see that way.”



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 compares favorably with France in terms of big government

The U.S. is not yet that bad [in terms of Government intervening in private sector]. But say from 1930 government spending as a percent of the economy has gone from 7.8 percent to now over 41 percent. It compares favorably with France which is now at 57 percent. But the bigger the government is, the less dynamic the economy can be and the less gross there will be. But the governments don’t see that way.


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 such as Oil have longer term price strength

The markets have become quite volatile, largely because of money printing. This concerns not just oil, but all commodities. The price of corn, wheat, soybeans are all down around 50 percent from the highs. They can be down for a while, but in my view, they will not stay down.


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 Estate and Stock Market bubble wont happen again

We had a huge bull market in real estate and equities, as well as bonds, between 1980 and 2007. That isn’t going to repeat.




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 Price Manipulation

We had a huge bull market in gold that outperformed just about any other investment between 1999 and September 2011. We're now three years into a correction phase. Can gold drop below $1,000 first before it goes up meaningfully? It's possible. Because as you know, there has been some manipulation in the gold market. However, gold will go higher over 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.

Commodities such as Oil have longer term price strength

The markets have become quite volatile, largely because of money printing. This concerns not just oil, but all commodities. The price of corn, wheat, soybeans are all down around 50 percent from the highs. They can be down for a while, but in my view, they will not stay down.


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

Big government, bigger problems

One of the reasons we have weak growth in the Western world, and in the U.S., and in Japan, is because of government interventions with fiscal policies. Spending-supported by money printing-has led to an ever-expanding government as a percent of the economy. And the bigger the government is, the slower economic growth will be. The extreme is when the government controls everything in the economy, such as under the socialist/communist planning system.


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 Price Manipulation but Gold will go higher over time

We had a huge bull market in gold that outperformed just about any other investment between 1999 and September 2011. We're now three years into a correction phase. Can gold drop below $1,000 first before it goes up meaningfully? It's possible. Because as you know, there has been some manipulation in the gold market. However, gold will go higher over 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.

Abenomics is a Failure

My sense is that Abenomics is a complete disaster in the sense that the cost of living – because Japan imports a lot of goods and as the Yen weakens these costs have been going up far more than wages and so real incomes are down.


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 calls for portfolio diversification

 The trade and current account deficit of the U.S. has been coming down because the balance in the energy trade has improved a lot. The U.S. is almost oil self-sufficient. It's become the largest crude oil producer in the world.

And even though the U.S. economy is not doing particularly well, it's in a slightly better position than the European economy. Thus, there are some reasons the dollar should be stronger.

That said, based on sentiment figures, everybody is now bullish on the U.S. dollar. Usually when you have this kind of consensus, what can happen is a powerful contra-move. In other words, the dollar could weaken for a while. That would be good for stocks and precious metals.

Additionally, if the Fed finds that the dollar is too strong, it can print money. But you just don't know what these academics will eventually decide to do. That's why I recommend investors have a diversified portfolio, because nobody knows what the world will look like five years from 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.

China is a huge Power; But it needs Resources

“The other issue that is not frequently discussed is the increased tensions in southeast Asia. China is a huge power; it needs resources. It will have to make sure the resources will always flow towards China, notably oil, iron ore and copper, and the U.S. has had this pivot to Asia which they declared about two years ago…which if you are Chinese, it’s a hostile move.”

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

Stock market at risk due to damages done to technicals

The likelihood that we have something more serious now is quite high. There has been considerable technical damage in the market, with approximately half of Nasdaq and Russell 2000 shares already down 20 percent or more from their highs. Combine that with the fact that Treasury bond yields have again declined meaningfully, and it suggests the economy is not on a very sound footing. We are in a period of elevated prices. From real estate to equities to bonds, there is a lot of excess. Going forward, the return on these assets will be very disappointing.


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

These are The Reaons for Hong Kong Protests

We have these student demonstrations. In my view it is less about democracy and more about the chief executive of Hong Kong being very unpopular with young people and also with other people in Hong Kong. And it is also a social background in the sense that Hong Kong became very prosperous between 1950 and about 10 years ago. Years in which GDP per capita increased enormously and over the last 10-15 years real in other words inflation adjusted per capita incomes have been declining. I believe the outcome will be some sort of compromise where by the chief executive would probably resign.




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 have outperformed S&P500

I was expecting now a correction for 2 years. We have gone up in a straight line from October 2011 to here. We are 3 years into this bull market where we didn't have more than a 10 percent correction.

This year has been irregular. Some indices like the S&P500 are up a modest 6 percent. Rusell 2000 has been down 4 percent. 50 percent of Nasdaq stocks are down 20 percent or more from their recent highs. In Asia you have markets like the Philippines, Indonesia, Vietnam, India, Thailand, Pakistan, that are all up between 20 percent and 28 percent. So when people tell me that the S&P have been such a great place to be, I have to laugh because Emerging Markets in Asia at least have done fantastically 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 a structural change where people actually prefer to not do very much

I think we have today in the world an entire generation who no longer wants to wake up at 7:00 in the morning and go to work at 8:00 or 9:00 in the morning and then come home at 5:00 or 6:00 in the evening and be pushed around by a boss. 

There's a generation of people who would rather do relatively little. They may opt to live with their parents in the basement or wherever that may be, so they have no responsibility to pay the rent for a house or to buy a house. 

They may drive around daddy or mommy's car and so forth. 

So I believe we have a structural change where people actually prefer to not do very much.



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

Gloom Boom Doom - October 2014 Report

Thomas Sowell recently penned an article entitled, Mob Rule Economics in which he takes a critical view of higher minimum wages. Sowell writes that,

“While we talk about democracy and equal rights, we seem increasingly to let both private and government decisions be determined by mob rule. There is nothing democratic about mob rule. It means that some people's votes are to be overruled by other people's disruptions, harassments and threats. The latest examples are the mobs in the streets in cities across the country, demanding that employers pay a minimum wage of $15 an hour, or else that the government makes them do so by law. Some of the more gullible observers think the issue is whether what some people are making now is ‘a living wage.’ This misconstrues the whole point of hiring someone to do work. Those who are being hired are paid for the value of the work they do.”

In general, I believe that people instinctively want to work, and I am also convinced that people who work are happier than people who have no jobs. However, I also see every day people who would be perfectly fit to work – in some cases with special skills – that actually prefer not working and instead opt out to receive some benefits from the government.

High unemployment and a declining labor force participation rate in the Western world has numerous causes including affluence, changing attitudes from “personal responsibility” to “entitlements,” and especially because of the government’s generosity. It is evident that with increasing Government transfer payments, a decline in salaries and wages as a percentage of the economy and a contraction in the civilian labor force participation rate occurred.

Over the last few years, a heated debate has raged about the causes of a structural decline in the rate of economic growth in the advanced economies of the West and Japan. For us investors this discussion is important in terms of the future movement of interest rates, which I think could stay low for US Treasuries for quite some 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.

Hold Treasurys Despite Low Yields

There is "nothing attractive" about Treasurys at the moment says Marc Faber, publisher of The Gloom, Boom & Doom report, but investors should still hold them to offset risks. Related trading instruments: United States Oil Fund LP ETF (USO), United States Natural Gas Fund (UNG), SPDR Gold Trust ETF (GLD), PowerShares DB Agriculture Fund (DBA)


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 believe that people instinctively want to work

In general, I believe that people instinctively want to work, and I am also convinced that people who work are happier than people who have no jobs. However, I also see every day people who would be perfectly fit to work – in some cases with special skills – that actually prefer not working and instead opt out to receive some benefits from the government. High unemployment and a declining labor force participation rate in the Western world has numerous causes including affluence, changing attitudes from “personal responsibility” to “entitlements,” and especially because of the government’s generosity. It is evident that with increasing Government transfer payments, a decline in salaries and wages as a percentage of the economy and a contraction in the civilian labor force participation rate occurred.

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 : it makes sense to hold it for diversification

Well, first of all we had the gold bull market from 1999 to 2011 and we’ve been in depression since then. If I compare the credit growth, monetary growth and asset growth among central banks and the whole banking wealth accumulation that we had in the last fifteen years, I don’t think that gold is terribly expensive. I hold physical gold for the reason that one day I may not be able to remit money from one country to another. I don’t know when this final systemic collapse that I am foreseeing will occur but all I can say is that in monetary, inflationary times, when inflation is measured properly, in real terms: stocks usually don’t do particularly well but gold does. Nobody knows how the world will look like in five years’ time. I don’t think that gold investment is the best over the long run, because it doesn’t generate cash flows and doesn’t “grow”. But I think it makes sense to hold it for diversification. My business depends on financial markets, so I own stocks, bonds etc. Most of it is in “paper” and I want to be diversified out of paper into something that is not the liability of someone else. In the bank account, I depend on the bank. If I own corporate bonds, I depend on the corporation to pay me back. In the case of physical gold, I don’t depend on anyone to pay me back, but I do rely on well-established property rights. All governments now largely consist of bureaucrat socialists that are anti-wealth – and this also goes for the Swiss bureaucrats. If a proposal to collect all the gold from banks and Swiss owners of gold comes up, they are likely to follow through. I think that the collection of one’s gold by the bureaucrats is the largest risk we have today.

When you print money it benefits few people

When you print money it benefits few people. Those with assets such as property and stocks get richer, while the rest see their cost of living rise while their wages do not go up commensurately. I believe we are in the midst of the generation that for the first time in Europe, US and Japan will die poorer than their parents.

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 wants his investments diversified hoping to avoid huge losses

I have always argued that we don't know how the world will look in five years' time. Maybe the S&P is at 3,000, but it could also be at 1,500—we just don't know. 

There's a lot of manipulation through fiscal and monetary policies. So I want to be diversified. I want to own some gold, I want to own some shares. I own the most in Asia and some in Europe because I think in Europe they are still better value than in the US. And I own some bonds, cash and real estate. I hope when the collapse happens, I'm only going to lose 50 percent of my money.



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 Rates to hit Asset Prices

I think the beauty of today unlike 1999 until March 2000 when we had the tech bubble; at that time the majority of old economy stocks were cheap, commodities were in-expensive, today the good news is we have a bubble in everything everywhere and with very few exceptions. And eventually there will be a problem when these asset markets begin to perform poorly. The question is what will be the catalyst, it could be a rising interest rates not engineered by the Fed, because I think they will keep the interest rates at Zero on the Fed funds rate for a very long time. Bond markets, something very unusual, French government bonds were yielding last week 1.3 percent. Spanish, Italian bonds as much as US 10 year treasuries. We could essentially have a break in bond markets at some point. We also could have a strong dollar. A strong dollar has already happened in the last two months signifies that international liquidity is tightening and when that happens its usually not good for asset 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.

We have been in a Correction since 2011

 “Basically, we’ve been in a correction since 2011, some informed observers they think that the market is manipulated, I don’t know. But I have always argued, we don’t know how the world looks like in 5 years’ time, maybe the S&P is at 3000, but it could also be at 1500, we just don’t know. There’s a lot of manipulation through fiscal and monetary policies. Now, I want to be diversified, I want to own some gold, I want to own some shares, I own the most in Asia, and some in Europe because I think in Europe there’s still better value than in the US, and I own some bonds and cash and real estate. So, I hope that when the collapse happens, I’m only going to lose 50% of my money. “






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 would rather buy Gold than Bitcoin

I know people who are very positive about Bitcoin, and I think its a currency that has a lot of future. But there will be competing bitcoins. And I personally when it comes to having some money into an asset or into cash that cannot be multiplied, I prefer a precious metal such as gold, silver, platinum, palladium. But of course you have to store it in the right place, not in the US. The best is probably a safe deposit box in Singapore or Hong Kong or in your safe in Asia.

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

Rich have gotten richer

Credit expansion and money printing hasn't filtered much to ordinary people. It's boosted asset markets, real estate and stocks. So well-to-do-people have done very well. High-end restaurants are packed. Now, some money flows to people who are serving there, because well-to-do people give generous tips, but ordinary people have a much higher cost of living increase than 2 percent.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Financial Markets should pay attention to Middle East Crisis

Today, we find ourselves with the same anti-free market interventionists who set up the Federal Reserve, the US Treasury and the US government. These same incompetent professors and academics also run foreign policy in America and then go and intervene in the affairs of Libya, Syria, Egypt, Iraq or Afghanistan. And as can be expected, they mess up just about everything. We have this Wolfowitz Doctrine that says they don’t want to tolerate any other major power such as the Soviet Union or China. So they want to contain these countries. When these countries become economically more and more important, the tensions, in my view, are only going to increase. I think it’s unlikely that the West will take any action. First of all, they don’t have the money. Second, a survey done by the US military stated that over 71% of their youth are unqualified to join the military for a number of reasons, including educational, behavioral and health conditions. So, if 71% of American youth are not qualified, it means the US doesn’t have the labor force to actually implement its foreign policies. And so they resort to private contracting companies that create more problems than solutions. I’m very negative about the Middle East. I think the whole region will blow up. Eventually Iraq will be divided into three different countries: the Kurds, the Sunni in the North and the Shiites in the South. All I can say is that, in general, financial markets are not paying sufficient attention to this.

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 End we will have a Collapse in Markets

Eventually we’ll have a collapse or deflationary bust in asset markets. That’s inevitable. Printing money can postpone such a collapse but eventually the bust will occur. Every inflation, whether consumer price inflation or asset inflation, eventually comes to an end.



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

Bitcoin vs Gold

I know people who are very positive about Bitcoin, and I think its a currency that has a lot of future. But there will be competing bitcoins.
And I personally when it comes to having some money into an asset or into cash that cannot be multiplied, I prefer a precious metal such as gold, silver, platinum, palladium.
But of course you have to store it in the right place, not in the US. The best is probably a safe deposit box in Singapore or Hong Kong or in your safe in Asia.


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

A Bull Market frequently goes on for longer than expected

The market hasn't had more than 11 percent correction since October 2011. A bull market frequently goes on for longer than expected. The current bull market is very old, we have been going up since March 2009. This bull market is more than Five years old. The one thing I can say is we are in an ageing bull market, and the economic recovery has lasted longer than the typical recovery or expansion phase over the last 100 years. Now can the bull market go on for a while because of additional money printing...possible... but in my view for asset prices to go up, the Federal Reserve actually has to increase the asset purchases and not taper and that is quite difficult politically to do. - See more at: http://www.marcfabersblog.com/#sthash.kKEuDGN0.dpuf





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

India stocks doing reasonably well

I just looked at the statistics of the revenue per shares of companies and in India we have a situation where revenue per shares has been rising significantly more than in other emerging economies in the last few years.
Now at the same time we have in India, pressure on corporate margins, profit margins, and if there is an environment where profit margins can improve, corporate profits could rebound very strongly. And so its conceivable that the stock markets in India, which have been one the best performing markets in the world year to date, that this performance continues for a while.


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 Mispriced

We've had relatively low volatility in bonds and in equities and in currencies and I think in the next 6 to 12 months will be characterized by far more volatility.
What we had since essentially early April was the Euro strength and since then the Euro has been weakening and then until July we had Yen strength and now its weakening. And bond prices have continued to go up. Its interesting that at the present time, Spanish government 10 year bonds yield less than US treasury. Spanish bond yield 2.25 percent and US 10 year note yields 2.4 percent. I believe all the markets are grossly mis-priced because some people say intervention, I say central banks have manipulated interest rates to artificially low levels and so you have this complacency in the market place.
We are more than 5 years in the bull market. Can the market go up another 10 percent or so, yes its possible. Since August 7th, up to today the S&P is up roughly 100 points, at this rate(in one month), the S&P in the next 12 months will be up 1200 points. I dont think its very likely. And if there is a strong blow up phase, it will be followed by an equal sharp downturn. - in Bloomberg 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.

The Global Economy is Weakening

When I travel and look around economies, I don’t see the global economy strengthening, I see it weakening. In Asia, we don’t have a recession per se, it is just economic growth has slowed down meaningfully or there is no growth at all .
We are now in the fifth year of an economic recovery which began in June 2009 in the U.S. and we’re more than in the fifth year of a bull market that began on March 6, 2009. This is a very mature economic recovery...it would seem to me that the monetary policies that central banks pursue are negative for economic growth, but they are positive for asset price increases. As a result of asset price increases, lots of goods have become unaffordable for the typical household.



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

Society in general has turned into an Entitlement Society

Generally, in small societies, democracy is more successful than in large societies.
In countries like India or the United States, the federal government has become so large that they take decisions that are not necessarily in the interest of the individual. This is different from Switzerland, where we have municipalities, “Gemeinden”, and states, “Cantons”, with a lot of decentralized power, which I find very desirable. Basically, over the last, I would say, 100 years, the Keynesians and the Neo-Keynesians thereafter propagated their view that the larger the government and the more the interventions the better a society becomes. They have managed to discredit the Austrian School of Economics. As a result, society in general has turned into an entitlement society where we have an insurance policy for everything and the government is expected to pay the bills. And so, the freedom of the individual is undermined. But with
freedom comes responsibility, personal responsibility. This has been pushed aside and people don’t realize that they can’t be free if they don’t take on responsibility. Adam Smith said the government should be in charge of a well-structured legal system, low taxes and defense and nothing else! Instead, we have more and more socialism and state planning, which diminishes people’s freedom. I believe we need to have a huge change in society to make people understand that if you want to have freedom you also have to take on personal responsibility.



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

Indian Stocks doing reasonably well

I just looked at the statistics of the revenue per shares of companies and in India we have a situation where revenue per shares has been rising significantly more than in other emerging economies in the last few years.
Now at the same time we have in India, pressure on corporate margins, profit margins, and if there is an environment where profit margins can improve, corporate profits could rebound very strongly. And so its conceivable that the stock markets in India, which have been one the best performing markets in the world year to date, that this performance continues for a while.



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

Asia : Best place to store gold

I wouldn't store it[Gold] in the US. I would rather store it in Singapore or in Hong Kong or maybe you bury it somewhere.

But as I mentioned earlier, I think the tendency is going to be for politicians that have completely failed and utterly failed to essentially blame rich people for wealth inequality and then they will go to the people, to the masses, and say, "You know what? What we have to do is take away their gold. These are the people who damaged your economy. Let's take away their gold."

And in the US they may do that, and in the ECB in Europe. The horrible politicians in Brussels and the US government are one in the same. They will go to the Europeans and say, "If we do it, why don't you also do it?" and Draghi and all these characters will say, "Yeah, good idea."

And then they'll knock on the door of the Swiss and the Swiss, who have no backbone anymore – except their soccer team, who consists of foreigners, not Swiss, all born overseas or children of foreigners in Switzerland – the politicians and the Greens and the Socialists will say, "Yeah, good idea. Take the gold from the rich people." So my view is it's probably best to hold gold in Asia and Singapore and Hong Kong where there is a culture of private property and a culture of gold.




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 Problems of the Current Monetary Policies is that Asset prices have risen very rapidly

I think one of the problems of the current monetary policies is that asset prices have risen very rapidly, notably in stocks in US and bond prices. The bond market, credit market is inflated and the stock market is inflated, and because of the strong housing price recovery in the US younger people cant afford to buy homes.

The monetary policies by boosting asset prices have lowered the affordability of assets. In future returns from all kinds of assets real estate, stocks, bond, even commodities will be relatively low.

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

Why Marc Faber may be right on market decline this time

I was recently asked by some commentator, why would the market go down? And I was at a meeting of economists and, whereas in 2009 all of them were very bearish, S&P 400 and this and that – I have to say, at the time I said the market is so incredibly oversold, in my view it will go up. Then in 2012, March to June, when the European markets were at the low and the euro was very weak – some European markets in March to May 2012 were lower than they had been in March 2009. But between March 2009 and March 2012, the S&P had more than doubled but the European markets had gone up and then collapsed somewhere lower than in 2009, such as Portugal, Greece, Spain, Italy, France. I told them, now is the time to put some money in Europe. All of them were very bearish.

So this group of economists, very intelligent, all academics who know much more about economics – or at least the Keynesian economics theories – than I do, and now they're suddenly all very bullish. That tells me something. I agree with Jeremy Grantham and John Hussman: Statistically seen and from an evaluation point of view, the market will have low returns over the next ten years.

Now, can the market go up another 30% before it falls 80%? Yes. Possible. But it can also start to go down relatively soon. I think the second half of this year will be a big disappointment for many people.


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 Dollar slowly losing its importance to rest of the world

The dollar is still going to be for some time the most important currency because I can travel with $1000 in cash or as I do, usually $10,000, and I can go into any shop, nightclub, bar, anywhere in the world, and pay with dollars. So it's still the accepted currency.

But increasingly, as world trade is more and more between emerging economies with each other. The world trade used to be, say 50 years ago, between the poor world, the emerging economies, the Europe and the US, and then it went up somewhere else. But nowadays more and more countries say – trade of China with Africa is now $200 billion. It's twice the size of trade between Africa and America. So over time, all this trade will be carried in other currencies than the US dollar. And the US policy makers and the incompetent people at the State Department managed to antagonize Mr. Putin with the Ukrainian uprising, which they supported. Now, this has backfired. Mr. Putin went and made a gas pipeline deal with China and the payments will not be settled in US dollars.

So gradually, yes, the importance of the US dollar is going to diminish as gradually the importance of the US economy – and I'm stressing this, relative to the rest of the world – is diminishing. In the '50s and the '60s the US was the dominant economy. It is still, according to their accounting methods, the largest economy but say car sales in China are as large as in the US and you have, of course, many more Internet users in China than in the US and there are many more computers in China than the US and so on. So in many sectors the US economy is no longer the largest. But all I'm saying is relative to the rest of the world, the US, in terms of military power and in terms of economic power, has lost out.



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

Market Collapse is next instead of a correction

I still hold 10-year Treasuries notes. I'm not of the view that it's a good investment. They are yielding 2.6% at the present time for 10 years so the maximum you can earn is 2.6% for the next ten years. I think it's a disastrous investment but maybe other investments like the S&P, the NASDAQ, the Russell 2000 are even worse and so I hold some 10-year Treasury notes as a hedge against the market decline.
I've been predicting – wrongly so, I admit – a correction for a long time. But now I don't believe there will be a correction. Next train station is a collapse.




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 Silver are relatively attractive still

Now, if we have a complete breakdown of the monetary system then maybe everything goes down and then stocks may go down 80% and gold only 40% or 50%. I'm just saying, relatively speaking in my view, gold and silver, platinum, palladium are quite attractive and I recommend people to have at least some exposure to precious metals in physical form.


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 Rich people aren't ripping off anyone

We have a two-tier economy. We have an economy of well-to-do people from which I have benefited because I'm in the financial sector. My asset value has gone up, I benefit from rising asset prices because I own shares and I'm on the board of companies that own shares, fund management companies and so forth, but I'm not happy about the fact that the typical household and the working class worldwide is not doing well.

And what will eventually happen and has begun to happen – and I have written about this already five, six years ago – when you have rising wealth inequality, eventually you have politicians that will not assume personal responsibility for the rising wealth inequality that is largely fostered by monetary policies by central banks, notably the Federal Reserve. They will then go to the public, like Bill de Blasio, and say, "Look, if you are not doing well it's the fault of the rich people. The rich people are ripping you off."

The rich people aren't ripping off anyone. They just took advantage of a situation that was given to them by the Federal Reserve.

And so these politicians will go to the people and say, "What we have to do is to punish the rich and let's introduce a massive wealth tax,".

[Thomas] Piketty, who has studied – and I do not disagree that he's done serious work; it's not exactly correct but he's done serious work about wealth inequality. When wealth inequality grows too much you have either significant social reforms, social strife or revolutions. And in Europe and everywhere I hear more and more talk about taxing the rich and that is going to happen. It's not going to help.

Redistribution of wealth eventually ends up in redistributing poverty.

VIA http://thedailybell.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.

It is Pointless to Talk to the FED

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope. What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive. They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up...then they had the Nasdaq bubble, then they printed again and had the housing bubble. David Hume and Irving Fisher said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn’t see it that way so it is pointless to talk to these people.

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 on Living in Thailand

I lived for 30 years in Hong Kong starting 1973. Then in 2002 we moved to Chang Mai in the north of Thailand, in the so called Golden Triangle.
We are in an agricultural part of Thailand. Its quite interesting because the agricultural sector around the world has done quite well. And Chang Mai is experiencing some kind of a boom. A lot of people from Bangkok they come here because the climate is much nicer than Bangkok and buy a second home.





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, Sticks to Stock Swoon Call

They call him Dr. Doom, and he likes that label just fine. It also fits with the renowned Swiss investor’s unwavering belief that U.S. stock markets are headed for a 30% decline sooner or later.

Marc Faber, the editor and publisher of the “The Gloom, Boom & Doom Report”, is among a handful of doomsters who have been predicting a correction for stock markets. And with the S&P 500 index SPX +1.02% up more than 6% this year, grinding its way through year five of a bull market, those calls are hardly being ignored.

Faber’s call is among the most dramatic and he tends makes the headlines when he opens his mouth. He has been expecting a big pullback since 2012 and recently predicted to CNBC a rout like 1987, when the Dow industrials dropped 22.6% in a single day. Not everyone agrees with him, of course. Jim Paulson, chief investment strategist at Wells Capital Management, last week predicted a pullback for this year, but also a multiyear run for this bull market. Goldman Sachs raised its S&P target to 2,050 from 1,900 on Monday.

Among the stocks that Faber does find attractive are commodity-related issues. In his July newsletter he highlighted gold and silver-mining shares as among the very few sectors that are “extremely depressed and offer an opportunity for potentially very high capital gains.” Oil stocks got a nod on the view the Fed and other central banks will speed up money printing if the economy or markets begin to weaken, also good for gold.

Separately, Faber said momentum stocks like Twitter Inc. TWTR +0.47% and Veeva Systems Inc. VEEV -0.10% are back to being potentially good short calls, as was his stance earlier this year.

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

Paper Money cannot be a protection, hold Gold

With practically Zero percent interest rates and cost of living increases of about Ten percent per annum, paper money at zero interest rates loses its purchasing power.
One of the functions of paper money is to be a store of value. [Hence] I have argued again and again that investors should hold some assets in precious metals as an alternative to cash



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 Fed will not change its Monetary Policies

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope. What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive. They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up. Then they had the Nasdaq bubble, then they printed again and had the housing bubble. David Hume(an economist) and Irving Fisher( an economist) said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn't see it that way so it is pointless to talk to these people.


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 likes Jeremy Grantham's thinking

We have a bubble in everything — from stocks to bonds, real estate, high-end real estate and even art.
I believe stocks are fully priced here. I’m of the view of Jeremy Grantham. That when you have low valuations, future returns are relatively high; when you have high valuations, future returns are relatively low. You might also like:


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

Stocks Could Crash 30% , Obama is A Very Poor President

"There is a colossal bubble in all asset prices and eventually it will burst," is the subtle recurring message from The Gloom, Boom, & Doom Report's Marc Faber, warnings that "maybe has begun to burst already." While Faber admits he has called for such a correction previously, he notes that the difference now is that "valuations are so much higher; and contrary to what the mainstream economists believe, I don't believe the global economy is strengthening; in fact I believe it is weakening." Furthermore, while "you never know what will trigger for a bull market or bear market is until after the fact," Faber offers 3 factors (aside from the Fed) that could trigger a 30% crash or more... beginning with "a) In The White House we have a very poor President - which will lead to political issues domestically in the US," which are not priced in.



 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 don’t see the Global Economy strengthening, I see it weakening

When I travel and look around economies, I don’t see the global economy strengthening, I see it weakening. We are now in the fifth year of an economic recovery which began in June 2009 in the U.S. and we’re more than in the fifth year of a bull market that began on March 6, 2009. This is a very mature economic recovery. It would seem to me that the monetary policies that central banks pursue are negative for economic growth, but they are positive for asset price increases. As a result of asset price increases, lots of goods have become unaffordable for the typical household.



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

Walmart indicator shows consumer sales are not growing

Wal-Mart shares peaked out in February and since then, the stock has been moving sideways. As as an economic indicator, Wal-Mart is a very good say symptom of what is happening to the consumer and if their sales are flat or down, or Coca-Cola’s in the U.S., it tells you something about the consumer.


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 & Silver Mining Stocks are very depressed

Gold and silver mining stocks are very depressed relative to the rates of the market and in absolute terms, in terms of valuations. So that sector is quite attractive.
I also think that coal shares have been oversold and they are now at a reasonably good value, but other than that, I do not see any particular value from a long-term perspective.
Now if you tell me that the market can go up another 10%, that may be the case, but it does not make for good value. Therefore if I look at the total return that I can expect from US shares over the next 5 to 10 years, it will be very disappointing. I would rather buy emerging market shares, which in terms of valuations are reasonably priced.



 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 issues Bear market warning and admits his previous mistake

Marc Faber issues Bear market warning and admits his previous mistake Obviously I've been wrong in the sense that I expected a correction to occur over the last two years, and it hasn't happened since October 2011, when the S&P was at 1,074. We've gone up in a straight line, without a larger correction than 11 percent, and I think we're not going to have a correction, but we're going to have a bear market.


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

A Colossal Bubble in all Asset Prices

 "I think it's a colossal bubble in all asset prices, and eventually it will burst, and maybe it has begun to burst already," Faber said Tuesday on CNBC's 'Futures Now' as the S&P 500 lost ground for the second-straight session."Obviously I've been wrong in the sense that I expected a correction to occur over the last two years, and it hasn't happened since October 2011, when the S&P was at 1,074. We've gone up in a straight line, without a larger correction than 11 percent, and I think we're not going to have a correction, but we're going to have a bear market," 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.

Gold storage safer in Asia

I'm worried that one day if the US does the same as in 1933, mainly seize the gold. They didnt expropriate it, they paid for it after they revalued the price of Gold. If that happened again, they would go to the European's and to the Swiss governments and say you have to do the same, and probably they would oblige. But in Asia I dont the Americans would do that. So I keep some gold in Asia and the bulk is still in Switzerland but I am thinking of moving it more and more to Asia.


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 first job has shown him value of money has dropped a lot

In 1970, I started with a salary of $1295 a month, plus I had a living allowance of $300. But with that you could live quite well, not with luxury. I had a nice one bedroom apartment on 52nd Street and we could go skiing on the weekends and on summers we went to the Hampton's for fun. I'm just saying the value of money has depreciated dramatically over 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.

Inflation is Here to Stay

"In case things turn out bad again, the central bankers have one thing left: money. When they start throwing out money, it will lead to price increases. Nobody can deny that anywhere in the world energy prices are substantially higher than they were ten years ago. Nobody can deny that food prices are up. Nobody in the US can deny that insurance premiums are up. So, to throw money at the system, at some point will lead to some more visible (!) pressure on consumer prices. Stocks has basically done nothing since the beginning of the year. But long term bonds are up 12% this year. Now, during the next downturn, I believe stocks and bonds will go down at the same 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.

I believe Stocks & Bonds will go down at the same time

"In case things turn out bad again, the central bankers have one thing left: money. When they start throwing out money, it will lead to price increases. Nobody can deny that anywhere in the world energy prices are substantially higher than they were ten years ago. Nobody can deny that food prices are up. Nobody in the US can deny that insurance premiums are up. So, to throw money at the system, at some point will lead to some more visible (!) pressure on consumer prices. Stocks has basically done nothing since the beginning of the year. But long term bonds are up 12% this year. Now, during the next downturn, I believe stocks and bonds will go down at the same 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.

Central Banks worldwide biased to Inflationary Monetary Policies

I think to be fair the Federal Reserve after its foundation in 1913 has essentially always pursued relatively expansionary monetary policies with one exception that stands out and that was the period Paul Volcker 1979-1980 when he pushed the discount rate to over 20%. A very courageous move I may add; but in general if you look at the price level in the U.S. in 1900 compared to 1800 and you look at real per capita increases between 1800 and 1900, then I have to say that the economic expansion under a gold standard essentially in the 19th century was stronger than in the 20th century when the Fed was in existence.

And what happened is in the 20th century the price level as you well know and as everybody knows has gone up dramatically in terms of how much it costs you to fill the tank of your car.

How much a movie ticket costs, how much a pound of bread costs, and so forth and so on. And so really the policies of the Federal Reserve have always been inflationary.

And I would say every central bank that essentially has the control of over the quantity of money will in the long-run ensue inflationary policies. Maybe temporary, occasionally, they tighten the monetary policies, but actually in the U.S. we didn't have tight monetary policies now for 10-20 years.






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 to continue investing in Vietnam despite tensions

Vietnamese work hard and they have ambitions. Investors like countries with highly ambitious people.

Vietnam has an attractive investment environment. Vietnam’s economy has been affected by the tensions with China in the East Sea. But I believe Vietnamese and Chinese diplomats will find a way to ease the tensions. I will continue investing in Vietnam.






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

Market correction still awaits

Since October 2011, we have not had a significant correction in the market. The largest corrections were corrections of less than 11%.
Now if the data deteriorates and if the stock market would decline by 20% over a given period of time, I think they would actually increase the asset purchases and actually give up the tapering.




 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 Dollar vs. Euro

If you look at the energy situation in the US, it is improving. Some people are talking about the US becoming energy self-sufficient. It is not necessarily my view, but although you have these positive factors that should support the dollar, the dollar has continued to be weak against the euro.
I admit that it has been strong against some currencies, but I am surprised that the dollar is not stronger.





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 : Stating There is No Inflation is an Error

"Inflation is an increase in the quantity of money and credit. The symptoms occur in a variety of forms. You can print money in the US, but it could happen that it does not boost economic activity in the US but only in China or in Vietnam or Indian and so forth. It can boost wages in India, it can boost real estate prices in London, and so forth, because we have a global economy. Stating there is no inflation is an error."




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

Stock Market Put protection

In a diversified portfolio I think that Treasury Notes and Treasury Bonds would rally, if stocks fell sharp. This is a way of having a put in the stock market.




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 Asset Class is Terribly Attractive Right Now

"I don’t see any asset that is terribly attractive. The most underappreciated asset is cash. Nobody likes cash. In the next 10 years, you will earn precisely 0 percent. In fact, you will lose money because Ms. Yellen is a money printer like all the others, and she will make sure that the dollar will depreciate in real terms. But for the next 6 months, cash will be most attractive. I don’t want to be in cash, but in the coming 6 months a lot of opportunities will come along."





 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 Stocks Could Easily Drop 10, 20 Percent

Marc Faber, publisher of the Gloom, Boom & Doom report, remains bearish on U.S. stocks, seeing valuations as stretched.
"I don't regard this as a very healthy market," he told CNBC. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent."
The Standard & Poor's 500 index rose 4.46 points, or 0.2 percent, to close Thursday at 1,892.49, within 1 percent of its record high. The index is up 2.4 percent for the year. The index' trailing price-earnings ratio registered 18 as of Friday, according to Birinyi Associates. That's above its historical average.
Faber isn't too enthusiastic when it comes to Treasurys either, saying there is "nothing attractive" about them.
The 10-year Treasury yield stood at 2.55 percent early Friday, after hitting a 6 ½-month low of 2.47 percent last week.
While acknowledging that U.S. stocks are "relatively expensive," he noted that Europe and emerging markets offered better value.
"If I were to buy equities I would rather go into emerging economies, but I don't think there is a hurry."
"I think we are bracing for a general asset deflation," Faber stated. "I think the system is still very vulnerable. I'm not predicting a complete collapse, because money printing can go on almost endlessly. But it will have unintended consequences." - in Money News




 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 Economies Stock Markets looking okay

I believe that emerging markets are reasonably priced – certainly compared to US equities – but they have not reached completely distressed levels where I would make a major commitment.

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 like the concept of Bitcoin

Western nations don't realize "you can't treat other nations the way you treated them in the 19th Centrury... China is so large and so important to its neighbors that the US will have to back off"
"People think they know what the future holds... and what Central banks are up to.. they don't... I will never sell my gold and I buy more every month... I would not be short gold"
"Every asset in the world is over-inflated right now..."
"I like the concept of Bitcoin"



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 Market Commentary June 2014 Gloom Boom Doom

I continue to believe that the future returns from asset markets will likely disappoint most investors. It should be clear that the higher bonds and stocks move up the lower the future returns will be. 

As mentioned, I hold Ten-year Treasuries, but with a yield of less than 2.5%, the best I am hoping for is to lose less money than in US stocks. 

I believe that emerging markets are reasonably priced – certainly compared to US equities – but they have not reached completely distressed levels where I would make a major commitment.


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

This is what could cause The Stock Markets to Drop

My view is that if the bears on bonds are right and say the 10 year treasury note indeed goes to 4 percent, I think the stock market will really tumble.



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 think the stock market will really tumble

My view is that if the bears on bonds are right and say the 10 year treasury note indeed goes to 4 percent, I think the stock market will really tumble.


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

Bull Market in Stocks is Running Out of Steam

Marc Faber, investment guru and the editor of the Gloom, Boom and Doom report, warned on Thursday that stock markets -- particularly in the United States -- were vulnerable to sharp falls.

U.S. stocks jumped on Wednesday after minutes from the Federal Reserve's last meeting had central bankers discussing ways to normalize interest rates. The Dow Jones Industrial Average leaped as much as 170 points, and ended up 158.75 points, or 1 percent.

A bull run in equities that started around five years ago has caused much debate in recent months with some investors believing that it may be running out of steam. However, some remain optimistic that extra liquidity—provided by central banks around the world—would continue to help bolster the asset class.

St"I don't regard this as a very healthy market, " Faber told CNBC from Singapore. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent." He pointed out that many stocks are already down 10 to 20 percent, such as momentum stocks which include high-flying technology and biotech shares.

- 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.

Momentum stocks have fallen down 30 to 50 percent from their highs

 Marc Faber talks to Trish Reagan of 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.

India should have smaller Government not bigger Government

It's a big issue globally because we live in a world where everybody knows bureaucracy is bad for business and small businessman suffers under the bureaucracy, whereas the large corporations hire lawyers, auditors, and lobbies where they influence government's decisions and regulations.
The media has brainwashed the electorate to expect the government to do something. The best economic policy of any government is to do nothing, but reduce the size of the government, reduce the size of the laws, and reduce the size of regulations. Though in today's social thinking it's difficult to implement.



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

Vietnam and Iraq to grow

The most attractive stock markets macro economically and technically in terms of valuation is probably Vietnam and Iraq, which as an economy is not problem-free but it will grow; the valuations are extremely low. So, these two markets will perform reasonably 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.

Africa and middle east growth

African economies and middle-eastern economies will grow quite rapidly, may be at Five per cent to Six per cent per annum. They are coming from a very low base.


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

1987 Style crash likely within 12 months

  I think it's very likely that we're seeing, in the next 12 months, an 87-type of crash... And I suspect it will be even worse.


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 troubles will be felt worldwide

The Geo-political situation of the world has worsened, and when there are tensions that could lead to repricing of risky assets. Now, China has become the most important economy in the global context in terms of growth, and if there is crisis then it will be felt globally.

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 on India economic growth predictions

A while ago, I thought India was still growing at 8 per cent-9 per cent according to published statistics.
I think the statistics were overstating growth because they were understating the increase in cost of living and understating inflation.
Now, going forward, I think if India can grow at 4 per cent-5 per cent per annum, that will be quite good.




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 troubles to impact commodity producing countries more

On India, the impact of slowdown in China will not be that significant because India is not a huge supplier of commodities to the world.
When China began to grow very rapidly after the late 1990's, it obviously drove demand for commodities higher along with the prices. So the commodity prices have seen huge increases between 1999 and July 2008, and now that the Chinese economy is slowing down, the increase in the rate of growth of purchases has slowed down considerably, and in some cases, the growth is negative.
So, my view is it will have very meaningful impact on resource producers such as Brazil, Argentina, Africa, Central Asia, Middle East, and Russia. And, I don't think that emerging economies will actually accelerate upside this year, I think they will slow down 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.

University degree can be useful

My father’s view was that I would have to work all my life and that to spend a few years at University - provided I qualified - would “inflame” my intellect and provide me with the opportunity to decide in what field I would spend the rest of my life.

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 troubles will be felt worldwide

The Geo-political situation of the world has worsened, and when there are tensions that could lead to repricing of risky assets. Now, China has become the most important economy in the global context in terms of growth, and if there is crisis then it will be felt globally.



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