Most Stock Markets in the world are correlated to the US Market

I think that most stock markets in the world are correlated to the US market. I believe that if the US S&P500 drops 10 percent, 200 points for sure other markets will also go down.
But is it possible that because of the weak economy in China the Chinese also print money which is a possibility. If they did that, the Yuan would weaken. [The Chinese Stocks] have been essentially under-performing the US since 2006 and so my belief is that if China decided to print money and currency weakened , money would flow into equities.
The other reason I am reasonably positive is the valuations in Hong Kong is relatively depressed, because you can buy property companies that sell at a discount of 40 to 50 percent of Net Asset Value. Now the Net Asset value may not be correct as property prices in Hong Kong could decline as they have over the last 12 months. But still you have some cushion of security. Moreover Hong Kong shares have a relatively high dividend yield compared to other markets.
So if someone says I'm very bullish on the US stock market, I would rather own Hong Kong shares instead of S&P because they have better value.




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 think that social media stocks are in a bubble phase

I think that social media stocks are in a bubble phase. I also think that a lot of biotech stocks are in a bubble phase. Aside from the fact that the entire market is in a bubble phase, these are two sectors that I would regard as highly 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.

Countries with surpluses investing mostly in Canada, Australia

What happens is some of these countries (such as Soviet Union, Eastern Europe, India) have large export surpluses, have reserves built up, then they come back into Europe and USA, but mostly into Canada, Australia to purchase assets for diversification reasons.







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

In The West and Japan : Current generation not as fortunate as previous

These people [current generation] will not enjoy the compounding impact that I enjoyed having started to work in 1970 when bond yields were 6% and they went to 15% and so forth.

 So during that period of time wealth was accumulating very rapidly plus we had a huge boom in real estate and in equities and bonds between 1980 and 2007. That is not going to happen again.






 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 gloomy on prospects for Western World

We are in a world that is driven by money printing and, in general, I believe the standards of living for many people in the Western world will continue to decline as they have declined over the last 20 years.










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 Christmas and humor

Christmas is a time for reflection. It must also be a time for humor and laughter.
Bill Cosby opined that, “Through humor, you can soften some of the worst blows that life delivers. And once you find laughter, no matter how painful your situation might be, you can survive it,”
Chamfort wrote that, “The most wasted day of all is that on which we have not laughed,”
Seneca observed that, “It better befits a man to laugh at life than to lament it,”
Ludwig Wittgenstein thought that, “Humor is not a mood but a way of looking at the world” whereas Ellen Glasgow pronounced that, “First I was an idealist (that was early - fools are born, not made...); next I was a realist; now I am a pessimist, and, by Jove! if things get much worse I'll become a humorist.”










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 was among the first to start a Russian fund

I have from time to time invested in Russia. I was the founder of I think the second Russian fund 'FireBird' with my partner and then they wanted me to sell out in 97 and so I sold 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.

China impact on Commodity Prices

I think that investors are not sufficiently aware that the Chinese economy is far more important for other emerging economies than the United States because China is a large importer of resources. In other words, iron ore, copper, zinc (inaudible). And at the same time, they are a huge exporter to commodity producers of their own manufactured goods, as well as Korean exports. The commodity producers are much larger than Korean exports to the US.

So if the Chinese economy slows down, commodity prices - industrial commodity prices are likely to remain under pressure. They've already come down a lot. They remain under pressure and the resource producers have less money. In other words, the Brazilian goes into recession. The Middle East does not grow as much as before. Central Asia, Africa and so forth all contract, and then they buy less from China and you have a vicious cycle on the downside.

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

Can foreigners own companies in Vietnam

There are restrictions. Non-Vietnamese investors can't own 100% of the shares, but in time the rules will be liberalized.



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 Asian family business practice changes

The attitude has changed in Asia: Many family businesses used to be dishonest but now are more honest. They realized that by being relatively clean, they could earn a higher stock-market valuation.



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

America blackmailed Switzerland and other countries

What worries me is this continuous blackmailing of countries by the America. Like the Swiss, they have to divulge the account names of Americans who had accounts in Switzerland and so forth. I think the Swiss government did a lousy job. They should have refused to divulge this information.
Anyways there was enough pressure and the pressure rose because Swiss companies have large holdings in America. The Americans said, you don't disclose us the names, we close down your shop in America and the banking lobby of course obliged.


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

How can companies have rising earnings, yet not provision sufficiently for their pension funds?

Faber: Precisely. Looking at 10-year annualized returns for U.S. stocks, the Value Line arithmetic index has risen 11% a year. The Standard & Poor's 600 and the Nasdaq 100 have each risen 9.4% a year. In other words, the market hasn't done badly. Sentiment figures are extremely bullish, and valuations are on the high side. But there are a lot of questions about earnings, both because of stock buybacks and unfunded pension liabilities. How can companies have rising earnings, yet not provision sufficiently for their pension funds?



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

Goldman Sachs is very good at predicting lower prices when they want to buy something

MARC  FABER: I would say Goldman Sachs is very good at predicting lower prices when they want to buy something. But that is a (inaudible) I would say, yes, we are down from $1,900 to $1,160 or something like this, and it’s been a miserable performance since 2011. However, from the 1990 lows we’re still up more than four times. So I just looked at performance tables over 10 years and 15 years. Gold hasn’t done that badly, has done actually better than stocks.
Now I personally, I think that we may still go lower. It’s possible. I’m not a profit, but I’m telling you I want to own some gold because I don’t trust the financial system anymore. I think the whole thing is going to collapse one day and then I’ll be happy to have some assets. But of course the custody (ph) is important. I wouldn’t hold my gold at the Federal Reserve because they will lend it out. I wouldn’t hold my gold in the US at all.






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

Low Oil Prices Impact on US Economy

Marc Faber, editor of "The Gloom, Boom & Doom Report", spoke with Bloomberg TV's Trish Regan today at length on a wide variety of topics. He commented on Bill Gross' remarks about deflation (noting "the concept of inflation and deflation is frequently misunderstood") and explained why he thinks Japan is engaged in a Ponzi Scheme (since "all the government bonds that the Treasury issues are being bought by the Bank of Japan"). He also spoke on oil prices (warning that "if oil prices went lower, it may actually have an adverse impact on the US economy"), gold and Goldman Sachs ("Goldman Sachs is very good at predicting lower prices when they want to buy something") and the midterm elections (adding that "I don’t think it really matters, [both parties] have blown money away.") But it is discussion of the independence of the Fed with Alan Greenspan that will raise the most eyebrows as it seems yet another conspiracy theory dies at the hands of the fact police.





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 Keynote speaker in Muscat, Oman on Dec 4 2014

Bank Muscat is to host economist and investment analyst Marc Faber on December 4, 2014 as part of the bank’s series of seminars. Doctor Doom aka Marc Faber is to share his insights on the state of world economy and financial markets.

Faber studied economics at the University of Zurich and got his PhD at the age of 24. He publishes a widely-read monthly investment newsletter ‘The gloom boom and doom’ report which highlights unusual investment opportunities, and is the author of several books, including ‘Tomorrow’s Gold – Asia’s Age of Discovery’ which was first published in 2002 and highlights future investment opportunities around the world. It was for several weeks on Amazon’s bestseller list.

On his perceptions about the global economy in 2015, Faber told the bank that it would be flat to down in 2015 as there was no growth in Europe, coupled with decelerating growth in most emerging economies and anaemic growth in the US, which might well go into reverse.

The dollar was likely to strengthen further in 2015 against the euro and the yen. Near-term, he felt that there would be a correction and also thought that the Fed was unlikely to increase rates in 2015.

About the Middle Eastern economies in general and the GCC in particular, Faber said the decline in oil prices was likely to lead to a slowdown in these economies.






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 Gold Prediction 2015: Physical Bullion or Gold Miners?

Marc Faber shares his opinion on whether gold will fall below $1,000 in 2015 and whether owning physical bullion or mining shares is a better bet. Do you agree with his forecasts?



 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 Global Stocks, Economy, Gold Prices

 Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt Miller, Scarlet Fu and Olivia Sterns on Bloomberg Television's "In the Loop." Bloomberg View columnist Barry Ritholtz also speaks. (Ritholtz is a Bloomberg View columnist. The opinions expressed are his own. Source: Bloomberg)






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

Many Stocks Are Already Down Marc Faber

Oct. 10 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global stocks, the economy and gold prices. Faber speaks with Matt.















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 : Gold Prediction 2015 - Physical Bullion or Gold Miners

Marc Faber : Gold Prediction 2015 - Physical Bullion or Gold Miners




















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