China vs USA advantages/disadvantages

Pretend you are the leader of China's army. The Americans are enlarging their bases in Australia, trying to stir up trouble in the Philippines and Vietnam, and lifting an embargo against Burma. America also has a defense pact with Japan. The Chinese depend on oil, copper, and iron, all imported commodities. What would you do to protect your border? 

The tensions in Asia are real and rising, and could cause a market panic, just like the financial crisis Felix discussed. The Chinese have decided to shrink their government's share of the economy and make markets freer. Everywhere in the industrialized world, you find the opposite.

China has a dark side, too. In the U.S., someone can be highly critical of the government and stay alive. If you write something negative about the leadership in China, you can be put in jail for a long time. There is only one Nobel Peace Prize winner behind bars -- Liu Xiaobo, in China.

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: America needs to be more competitive in manufacturing

China has grown extremely competitive in the quality of its earth-moving and construction machines. What they produce is better than what Deere and Caterpillar produce. 

The problem in America is that you have a lot of Facebook geniuses who sit around all day looking at their own pictures. They don't have competitive jobs. 

I met a diver in Shanghai the other day who repairs platforms and pipelines. He makes $180,000 a year and works half-time. 

The point is, there are lots of jobs that would pay well, but not many Americans are qualified to do them.




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 Bubbles & Gold

  Marc Faber speaks on the importance of the Chinese economy to emerging economies, and specially to its neighboring Asian countries:

"To clarify a point about the size of the U.S. economy and its importance in the world, China imported 12% of global metals consumed in 2000. Now it imports up to 47% a year. China's growth has a major impact on emerging economies. The U.S. has no impact because it is a service economy. China has gone from sending less than a million travelers overseas in the mid-1980s to 100 million now. You hardly see American tourists in Asia any more."


Marc Faber on finding investment ideas currently and why Gold could go higher:

"All asset prices are in the sky, whether it is Picassos or Warhols or the flat that Steve Cohen is trying to sell. We are in a bubble. We are the bubble. It is only a question of which asset is in a lesser bubble. The U.S. is expensive, compared to the European market and especially emerging economies. Based on the level of today's secular adjusted P/E, returns in the next seven to 10 years will be minor, if not meaningless. The Mexican stock market went up 343 times between 1984 and '87 because of money-printing. Then the currency collapsed. The dollar can't collapse, so gold will come to the forefront."

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 vs USA advantages & disadvantages

Pretend you are the leader of China's army. The Americans are enlarging their bases in Australia, trying to stir up trouble in the Philippines and Vietnam, and lifting an embargo against Burma. America also has a defense pact with Japan. The Chinese depend on oil, copper, and iron, all imported commodities. What would you do to protect your border? 

The tensions in Asia are real and rising, and could cause a market panic, just like the financial crisis Felix discussed. The Chinese have decided to shrink their government's share of the economy and make markets freer. Everywhere in the industrialized world, you find the opposite.

China has a dark side, too. In the U.S., someone can be highly critical of the government and stay alive. If you write something negative about the leadership in China, you can be put in jail for a long time. There is only one Nobel Peace Prize winner behind bars -- Liu Xiaobo, in China.



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

What could crash stocks in 2014

Its interesting that despite all the money printing bond yields didn't go down, they bottomed out on July 25th 2012 at 1.43 percent of the 10 year. We are now 2.85 percent. We are up substantially. This hasn't had an impact on stocks yet. In fact it pushed money into the stock market out of the bond market. But if they 10 years goes to three and half to four percent and the 30 year goes to close to five percent, the mortgage rates go 6 percent, that will hit the economy very hard.

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

Similarities in US stock market with Indonesia, Thailand

The market hasn't had a correction of more than 11% since October 2011. It is possible that a well-run bond fund will do better this year than the stock market. Enthusiasm about the U.S. market reminds me of the talk I heard nine months ago in Indonesia and Thailand. Subsequently, those markets fell 35%. While it is too late to buy the U.S., it is too early to buy the emerging markets. They aren't incredibly cheap, except for Vietnam and Iraq, and capital could still flow 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.

Faber on Singapore, Cathay Pacific Air

I am not keen to own Singapore Airlines or Cathay Pacific Airways because they have a lot of competition from budget airlines. But I like some airline-servicing companies based in Singapore, including SATS, in the catering business, and SIA Engineering, which overhauls aircraft. They have subsidiaries in many Asian countries. The stocks yield around 4%. They aren't supercheap, and the Asian markets generally aren't cheap enough for me. But longer term, if you want to park money in Asia, both companies will do 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.

US growth had been driven mainly by deficit spending and money printing

Marc Faber of the Gloom, Boom & Doom Report is worried about inflation given the Federal Reserve’s massive money printing efforts. But he doesn’t think diving headlong into gold and/or real estate is the best move. Faber tells FOX Business Network that he thinks investors should still use a diversified strategy, owning stocks, real estate, gold, and bonds as part of a disciplined approach. He also talks about his belief that US growth had been driven mainly by deficit spending and money printing.


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

Hard to find Market Bargains

All asset prices are in the sky, whether it is Picassos or Warhols or the flat that Steve Cohen is trying to sell. 

We are in a bubble. We are the bubble. It is only a question of which asset is in a lesser bubble. 

The U.S. is expensive, compared to the European market and especially emerging economies. Based on the level of today's secular adjusted P/E, returns in the next seven to 10 years will be minor, if not meaningless. The Mexican stock market went up 343 times between 1984 and '87 because of money-printing. Then the currency collapsed. The dollar can't collapse, so gold will come to the forefront. Or Bitcoins.


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 Economy important to Emerging Markets

To clarify a point about the size of the U.S. economy and its importance in the world, China imported 12% of global metals consumed in 2000. Now it imports up to 47% a year. China's growth has a major impact on emerging economies. The U.S. has no impact because it is a service economy. China has gone from sending less than a million travelers overseas in the mid-1980s to 100 million now. You hardly see American tourists in Asia any more.



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 Growth had been driven mainly by Deficit Spending and Money Printing

 Marc Faber of the Gloom, Boom & Doom Report is worried about inflation given the Federal Reserve’s massive money printing efforts. But he doesn’t think diving headlong into gold and/or real estate is the best move. Faber tells FOX Business Network that he thinks investors should still use a diversified strategy, owning stocks, real estate, gold, and bonds as part of a disciplined approach. He also talks about his belief that US growth had been driven mainly by deficit spending and money printing.




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 will hit the Markets Hard

Its interesting that despite all the money printing bond yields didn't go down, they bottomed out on July 25th 2012 at 1.43 % of the 10 year. We are now 2.85 %.

We are up substantially. This hasnt had an impact on stocks yet. Infact it pushed money into the stock market out of the bond market.

But if the 10 year goes to 3 and half to 4 percent and the 30 year goes to close to 5 percent, the mortgage rates go 6 percent, that will hit the economy very hard.

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

Physical Gold is ALWAYS Good Insurance

Marc Faber is back and his New Year’s resolution did not include a dose of optimism when it comes to the economy. He was back on Fox Business for his first interview of 2014, and the themes remain the same. Faber even tosses in a mock congratulations towards outgoing Federal Reserve Chief Ben Bernanke on the job well done.

The interview, while clocking in at under four minutes, was wide ranging. But with Marc Faber, you know the publisher of the Gloom, Doom and Boom Report is going to get back to his central premise of owning physical gold as a form of insurance. Kicking off the interview was the old standby of the resurgent housing market.

Dagen McDowell wanted to know why people shouldn’t jump back into the housing market as a hedge against inflation. Maybe she saw the plunge in mortgage applications and got the word to start pumping people up again. Marc Faber pushed back, saying that all the Federal Reserve has done is rebubbled the housing market with the QE market. Hard to argue the point. Look at mortgage rates pricing people out of the market, and the number of cash-only sales.

Unless there has been a sudden boom of people unearthing caches of cash in their backyards, those are not your typical middle class buyers. Marc Faber maintains that home prices do not represent a great opportunity today, and in fact it forces people into renting at ever increasing rates.

His solution? Diversify. Does he think you can make all your money back on gold if you invested at the beginning of last year? Not necessarily, but that doesn’t mean you do not have some in your portfolio. Add in bonds, equities and real estate for a balanced portfolio. He does not buy into the hype surrounding the ever surging markets.

Actually, for a guy a that is normally thought of as a doomer, his advice sounds more sound than the mainstream who sits around and screams about the next momentum stock. And judging by the way gold is acting today, it is off to a better start this year than last.

- Source, Trade the News Room




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

Within a Year FED Asset Purchases Will be Substantially Higher

Faber said the good times cannot last.

"The economic recovery, or so-called recovery, by June of next year, will be in the fifth year of the recovery," Faber said. "So at some stage the economy will weaken again, and at that point, the Fed will argue, 'Well, we haven't done enough, we have to do more.'"

The noted bear has little admiration for the economists at the Federal Reserve.

"The Federal Reserve—all of them—could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger," Faber said. "That is the state of mind of the professors at the Fed, who never worked a single [day] in business."

And while Faber actually believes that a reduction in QE could happen, he wouldn't view it as a true tapering, as he says it will be a largely meaningless, one-time move that will eventually be reversed as the economy worsens.

"They may do some cosmetic adjustments, but in my view, within a few years, the asset purchases will be substantially higher than they are today," Faber said.

- Source, 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.

Marc Faber 'Congratulates' Ben: "Well Done, Mr. Bernanke!"

In a little under four minutes, Marc Faber explains to Fox Business' Dagen McDowell all that is wrong with the Central Planners 'current plan'. From a re-bubbled housing 'recovery' pricing real buyers out of the market ("homes do not offer a great opportunity today") to forced-renters paying increasing amounts of their stagnant wages, and the small percentage of ordinary Americans who actually benefit from a rising stock market, reducing their disposable income to which Faber sarcastically rants "well done, Mr. Bernanke." His advice, be diversified, don't BTFATH in stocks, and physical gold is always a good insurance.


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 US Government

If the U.S. Government was a company, the deficit would be $5 trillion because they would have to account by general accepted accounting principles.
But actually they encourage government spending, reckless government spending, because the government can issue Treasury bills at extremely low interest rates.
 
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Bubble could burst any day

 It [bubble] can burst any day. We are very stretched, sentiment figures are very very bullish, everybody is bullish. The reality is they are bullish because they think the economy will accelerate to the upside.
But my view is very different, the global economy is largely emerging economies nowadays, and they are slowing down. There is no growth at the moment in emerging economies, there is no growth in local economies. So I feel that the valuations are high, the corporate profits have been boosted largely by the fall in interest rates.

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 dislikes Bitcoin, Facebook

Marc Faber on if he would invest in Bitcoin:
I prefer physical gold, silver, platinum to Bitcoin. Bitcoin can have a lot of competition. Gold, silver, platinum dont have any competition. How do you value a bitcoin ? I can value Gold to some extent to say Gold to the quantity of money floating around the world, the wealth increase, to the credit increase, to the production costs, so I have any idea of where Gold should be. I'm not sure because prices overshoot.

Dr Doom's opinion on the social media giant Facebook (FB)
I think it is a to a large extent a Fad and people they go on facebook. For most people what people do is, they put a picture on, and the only people that watch these pictures are themselves. They all want to be stars. Its a very distracting type of occupation. I cant imagine that this would have a lot of value. The question is how much use it is.

On what he would rather buy than FB:

I would rather own, I dont own it because its very highly priced, a company like Alibaba, Amazon, Google than Facebook personally. That is my view.



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 : I'd rather buy something that is relatively depressed

I'd rather buy something that is relatively depressed than something that is relatively high.

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

Within a Year FED Asset Purchases Will be Substantially Higher

Faber said the good times cannot last.

"The economic recovery, or so-called recovery, by June of next year, will be in the fifth year of the recovery," Faber said. "So at some stage the economy will weaken again, and at that point, the Fed will argue, 'Well, we haven't done enough, we have to do more.'"
The noted bear has little admiration for the economists at the Federal Reserve.

"The Federal Reserve—all of them—could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger," Faber said. "That is the state of mind of the professors at the Fed, who never worked a single [day] in business."

And while Faber actually believes that a reduction in QE could happen, he wouldn't view it as a true tapering, as he says it will be a largely meaningless, one-time move that will eventually be reversed as the economy worsens.

"They may do some cosmetic adjustments, but in my view, within a few years, the asset purchases will be substantially higher than they are today," Faber said.

- Source, 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.

Rising stock prices dont benefit most people

According to a Gallup Poll, only 52 percent of Americans own directly or indirectly stocks. Of those 5 percent own 72 percent of financial assets. In other words rising stock prices have no impact on majority of Americans.

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

Dr. Marc Faber likes value

I'd rather buy something that is relatively depressed than something that is relatively high.

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

Taper or no taper, the Fed will never end QE

When the Federal Reserve announces its next move on Wednesday, some expect it to reduce its $85 billion monthly bond-buying program, targeting an eventual end to quantitative easing in late 2014. Others expect the Fed to begin to reduce the program in early 2014, or to finish it off by 2015. But Marc Faber has a different take altogether .
"The Fed will never end QE for good," the editor and publisher of the Gloom, Boom & Doom report said Tuesday on CNBC's "Futures Now." "They will continue because these programs, once they're introduced, usually keep on going."
The Fed will announce its decision at 2 p.m. EST on Wednesday, and Fed Chairman Ben Bernanke will follow that up with a 2:30 p.m. news conference. Expectations for the meeting are mixed, but more that 50 percent of Wall Streeters expect the Fed to taper its QE program in either December or January, according to the CNBC Fed Survey. As economic data have improved, many investors are guessing that the Fed no longer considers QE to be as vital as before. - 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.

I Don't Think People Should Buy Stocks

"I think we will go up until it's over," Faber said. In 2013 "I wrongly predicted a 20 percent correction—it hasn't happened. But I think when it's over, it will be more than 20 percent." Given that nuanced view, "I'm not yet short, but I would look at essentially any rally here in the U.S. market as an opportunity to lighten up on positions," Faber said. "And I don't think people should buy stocks". - Source, Marc Faber via 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.

Most Americans do not own stocks

According to a Gallup Poll, only 52 percent of Americans own directly or indirectly stocks. Of those 5 percent own 72 percent of financial assets. In other words rising stock prices have no impact on majority of Americans.

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

Once you go money printing, you stay money printing

I do not believe that the central banks around the world will ever, and I repeat ever, reduce their balance sheets. They have gone the path of money printing and once you choose that path, you are in it and you have to print more 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 stock prices dont benefit most people

According to a Gallup Poll, only 52 percent of Americans own directly or indirectly stocks. Of those 5 percent own 72 percent of financial assets. In other words rising stock prices have no impact on majority of americans. - See more at: http://www.marcfabersblog.com/#sthash.VOeCgMnh.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.

We Are in a Massive Bubble

"You have to say that we are again in a massive financial bubble in bonds, in equities, in [other] asset prices that have gone up dramatically." - Marc Faber

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

Invest in a Quality Financial planner for Results

I seldom go to see doctors but when I do, I like to be ideally with a doctor who is a friend, understands my unhealthy lifestyle and in whose judgement I can trust. I have no doubt that trusting a doctor will significantly accelerate the healing process.

In the world of investments people’s investment results would be better if instead of trading online day and night they would have a close relationship with a capable and honest financial planner who could provide them with advice and occasionally with a second opinion.

What really amazes me is that people want to see the best and most expensive doctors (okay, the government or the insurance company pays), buy the highest quality products, but will use the cheapest possible way to transact and invest their funds.

The journey along the investment road is an arduous one and it is very important that you have a good companion who comforts you when “bad luck” strikes and who is at the same time a reliable guide that helps you find the way.

Less affluent investors will of course argue that the access to top financial advisors is only open to high-net- worth individuals. That is unfortunately the case and I wished I could change that because small investors need more help than already very well to do 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.