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.