Marc Faber : Modi's policies good for India

Modi's policies are pro-growth and favourable for India: Marc Faber

Despite giving a thumbs up to the Union Budget proposals, MARC FABER, a renowned global investor and author of The Gloom, Boom & Doom report tells Puneet Wadhwa that India's spend on infrastructure remains insufficient. For the next 10 years, investors will be better off in emerging markets than in the US, he says. Edited excerpts: How do you see the Indian economy shaping up in the backdrop of global headwinds and the Union Budget proposals? The Indian economy is performing relatively well. In India, there is always this debate at what rate is the economy growing - be it 6%,

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

3 Reasons why The US Market is Going Down This Year

The "very complacent" market is discounting three critical trends that could ultimately lead to a correction, Marc Faber, editor of The Gloom, Boom & Doom Report, told CNBC on Thursday.

The man also known as "Dr. Doom" said on "Fast Money Halftime Report" that foreign currencies, the U.S. economy and the Trump administration could all contribute to a significant dip.

Faber said the stability of the U.S. economy relative to foreign nations' economies has attracted capital to the United States, boosting the dollar and stock prices. But the trend could reverse, he said.

"I believe the time will come when the weakness of the euro becomes uncomfortable for the Europeans, specifically the Germans, and then there will be a reverse," Faber said. "And the dollar will go down, and the money that flowed into U.S. assets will flow out of U.S. assets, and so the market is more likely to go down."

And, while the U.S. economy looks strong relative to other countries', Faber contended that it is still quite weak based on indicators like tax receipts, car sales and personal consumption levels.

"I believe also the policies of Mr. Trump will actually not reduce the government," Faber continued, suggesting that the commissions President Donald Trump sets up to restructure government agencies will actually go against traditional Republican ideals.

"Plus, fiscal spending means essentially an expansion of the government, so that is not pro-growth in my book," Faber added.

And, while Dr. Doom did not shed light on the timing or financial impact of a potential correction, he said that he will share in the effects.

"We have roughly inflated asset markets. I also own shares, I also own bonds, and I also own precious metals. I also own real estate. So if asset prices go down, I suffer like you and everybody else," he said. "But at least I know that it can happen."

Appearing on CNBC's "Futures Now" in February, Faber predicted that a market sell-off could trigger a selling "avalanche."













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

Bullish Call on Asia & China in 2017

I think that emerging Asia - China looks quite attractive, for how long? who knows. But for the next 3 months money can flow into China. The economy has surprisingly has begun to do quite well. We see that in retail in Hong Kong, we see that in the Hotel industry and we see that in the demand for Commodities.

What has done relatively well is selected commodities. Last year Zinc and Iron Ore were the best performing asset. This year Copper has been very strong, Gold last year was up 9 percent, this year is again up 9 percent. So I think investors should again be investing in Resource Stocks. Because when you really look at Trump and his Administration, I think further money printing down the line is inevitable. Maybe they increase rates a little bit here in March, that is possible. But the bond markets will have already discounted it.

So bonds are relatively undervalued compared to Equities. And Emerging Markets are relatively undervalued, Resource stocks are undervalued, and I think Consumer Staples are also reasonably priced as well as REITS. I have a large exposure to REITS in Singapore and Hong Kong.









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 Dollar Currently Overvalued

Investment guru Marc Faber warns that investors are too bullish about the U.S. and that the American currency is overvalued.

“Investors are too bullish about the U.S. and far too negative about emerging-market economies. I also think they are neglecting Japan and European equities so anything outside the US is probably from my perspective more attractive,” he told India’s CNBC TV 18.

The U.S. dollar “is too strong” and “is probably overvalued at this level already,” said Faber, also known as "Dr. Doom" for his often pessimistic and apocalyptic market predictions.

“It may overshoot further which may then cause a problem for the Federal Reserve because as they said they basically plan to have three interest rate increase in 2017. But if the dollar is too strong maybe they can't do it,” he said.

The Federal Reserve "can have other central banks print money for them for a while and then in 2017 possibly the dollar becomes too strong and the U.S. economy rather weakens than strengthens then they can print again themselves. They have an excuse," he said. "I still maintain that central banks will keep on feeding the world with excess liquidity," he said.

“Valuations in the U.S. are at historically very high levels whereas elsewhere they are relatively inexpensive valuations. So, I would focus on foreign markets and I would focus on sectors that were out of favor for a long time,” he said of investing strategy for the new year.

Oil and mining companies, financials and tech are among his favorite sectors for 2017, he said, adding that he sees a lot of potential in agricultural commodities.

“People will tell you that emerging markets performed poorly in 2016 and that the U.S. was the only game in town. But let me just say that in U.S. dollars in 2016 the Russian index was up 51 percent, Brazil 63 percent, Kazakhstan 66 percent, Thailand 19 percent, Indonesia, 19 percent, Karachi 40 percent, Vietnam 30 percent,” he explained.

“Some markets have actually performed very well. We turn to individual stocks some stocks have done very well in 2016 in particular the sectors that were very depressed like oil and gas and mining companies that is until recently have weakened but on the year they are still up strongly,” Faber 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.

Marc Faber : EU Stocks are a long term Buy

We may have seen a generational low in European markets last year 2012.

The long term investor will probably earn quite well out of European equities and especially from individual stocks. There are many companies in Europe that at the moment are paying quite high dividends.














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

High Home Prices Turning American Millennials Into the New Serfs

March Report "Are High Home Prices Turning American Millennials Into the New Serfs?" published. https://t.co/M2NoQayrz5

 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 : The US Dollar is Currently Overvalued

Investment guru Marc Faber warns that investors are too bullish about the U.S. and that the American currency is overvalued. 

“Investors are too bullish about the U.S. and far too negative about emerging-market economies. I also think they are neglecting Japan and European equities so anything outside the US is probably from my perspective more attractive,” he told India’s CNBC TV 18.

The U.S. dollar “is too strong” and “is probably overvalued at this level already,” said Faber, also known as "Dr. Doom" for his often pessimistic and apocalyptic market predictions.

“It may overshoot further which may then cause a problem for the Federal Reserve because as they said they basically plan to have three interest rate increase in 2017. But if the dollar is too strong maybe they can't do it,” he said.

The Federal Reserve "can have other central banks print money for them for a while and then in 2017 possibly the dollar becomes too strong and the U.S. economy rather weakens than strengthens then they can print again themselves. They have an excuse," he said. "I still maintain that central banks will keep on feeding the world with excess liquidity," he said.

“Valuations in the U.S. are at historically very high levels whereas elsewhere they are relatively inexpensive valuations. So, I would focus on foreign markets and I would focus on sectors that were out of favor for a long time,” he said of investing strategy for the new year.

Oil and mining companies, financials and tech are among his favorite sectors for 2017, he said, adding that he sees a lot of potential in agricultural commodities.

“People will tell you that emerging markets performed poorly in 2016 and that the U.S. was the only game in town. But let me just say that in U.S. dollars in 2016 the Russian index was up 51 percent, Brazil 63 percent, Kazakhstan 66 percent, Thailand 19 percent, Indonesia, 19 percent, Karachi 40 percent, Vietnam 30 percent,” he explained.

“Some markets have actually performed very well. We turn to individual stocks some stocks have done very well in 2016 in particular the sectors that were very depressed like oil and gas and mining companies that is until recently have weakened but on the year they are still up strongly,” Faber said.

- Source, NewsMax
















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 : 2017 Surprise for Investors is the Stock Market going down

Marc Faber :  “Car sales have been weakening, housing has been slowing down, the debt levels are extremely high, and short-term interest rates are going up, so it’s hurting some sectors of the market which are interest rate dependent.  And I think the economy by and large will disappoint in the next three months, and therefore one of the predictions and positions I have is to be long Treasury bonds.

But I think the surprise for many investors is that the stock market will go down.  I would say a bear market is overdue and a recession is overdue.

The one thing that we need to consider which is important for, say, precious metals investors, is the following:  Let’s say the Fed realizes that the deficits for the U.S. go up and that interest rates increase and that the economy slows down, do you really think that they will increase the Fed funds rate three times in 2017?  Never.  What they will aim at, then, is to essentially bring interest rates down, especially if by then the dollar is still strong.  And so they will probably launch QE4 in 2017.  I think that will be a surprise for many people — not for me, but for many people that will be a surprise.

So as a surprise I would say A, a stock market that goes down, B, a recession, and C, a bond market rally and precious metals going…
Source Kingworldnews

















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 Warns: Central Banks Will Monetize Everything

Mr. Faber: They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism, which is state ownership of production and consumption.

You would have that, yes, that they can do. The BoJ owns more than 50 percent of Japanese ETFs (exchange traded funds), which own large parts of the underlying companies. So indirectly they may own 20 percent of the Japanese companies, and they can go up to a higher level.

 I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present. They focus on inflation but in my view they shouldn’t do anything. They don’t focus enough on what it does to the average standard of living of the people, to the average household income.













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 : The Stock Market Rally is Overextended

The famous investor known as Dr. Doom argues the U.S. rally is overextended and makes the case for investing in overseas markets. - Source, CNBC










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

2017 Will Be Good For Gold

Investors may be in for a “year of disappointments” and precious metals may prove to be a useful hedge, this according to famed contrarian investor Marc Faber. Known as Dr. Doom for his often pessimistic views, Faber told Kitco News his 2017 outlook is no different to his previously negative forecasts. “As we come into 2017, investors seem to be extremely optimistic about U.S. equities and about the U.S. dollar,” he said. “I think we can have a year of disappointments.”

Faber said investors should look to have exposure in commodities, especially platinum, which he dubbed his “favourite precious metal for 2017.” “The individual investor will find it difficult to trade commodities where he has to rollover his position every month or every 3 months, which is very costly,” he explained. “For the normal investor who wants exposure in commodities, the best is to be in precious metals - gold, silver, platinum.”













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 U.S. Market is Completely out of Range

Regardless of the Dow’s rapid incline, “Gloom, Boom & Doom Report” Editor Marc Faber believes the U.S. market is ‘completely out of range’ with the other world markets.

“Investors should understand that markets can also go down and it would not surprise me to see the inflated asset markets especially the financial markets being down 20 to 40 percent at some point. I think there will be a closing of this diverging performance with either Europe outperforming the U.S. or both going down or the U.S. going down more,” he told the FOX Business Network’s Charles Payne.


“The typical stock in America is already down 9 percent from a 52 week time and in the last three days wouldn’t you think that this is maybe a little bit funny? Every day there were more new lows on the New York Stock Exchange than new highs and this 1.6 percent below the all-time high in the market, that should tell you something,” he said.

Faber concluded by saying, “I would buy European stocks.” 

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