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.