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.