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.