Marc Faber: I am ultra bearish

Marc Faber : "I am ultra bearish. I think most people will be lucky if they still have 50% of their money in 5 years time. You have to have diversification - some real estate in the countryside, some gold and some equities because if you think it through, say Germany 1900 to today, we had WWI, we had hyperinflation, WWII, cash holders and bondholders they lost everything 3 times, but if you owned equities you'd be ok. In equities in general you will not lose it all, it may not be a good investment, unless you put it all in one company and it goes bankrupt." - in Zerohedge

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

All the Markets of the World are Interconnected

Marc Faber : There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets In Asia, we’re down between 15 percent and 25 percent in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world. I think this outperformance may go on for a while. - in Wall St Sheet Cheat 


 
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 am Ultra Bearish

Marc Faber : "I am ultra bearish. I think most people will be lucky if they still have 50 percent of their money in 5 years time. You have to have diversification - some real estate in the countryside, some gold and some equities because if you think it through, say Germany 1900 to today, we had WWI, we had hyperinflation, WWII, cash holders and bondholders they lost everything 3 times, but if you owned equities you'd be ok. In equities in general you will not lose it all, it may not be a good investment, unless you put it all in one company and it goes bankrupt." - in ZeroHedge 


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 - Everything Financial Radio - December 04 2011

Dr. Marc Faber is best known for his monthly investment newsletter The Gloom Boom & Doom Report, which highlights unusual investment opportunities. Dr. Faber is also an author of several books and is a regular contributor to several leading financial publications around the world, including Forbes and the Financial Times.Dr. Marc Faber. Born in Zurich, Switzerland, Dr. Faber studied Economics at the University of Zurich and obtained his Ph.D. in Economics magna cum laude. From 1978 to 1990, Dr. Faber was the Managing Director of Drexel Burnham Lambert (HK) Ltd. and later started his own company, Marc Faber Limited. Dr. Faber has been living in Hong Kong since 1973.

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: Global Economic Collapse COMING

Dec 09, 2011 Marc Faber, publisher of the Gloom, Boom and Doom Report, says there will be a global market collapse. Also Marc explains how entire derivative markets will have their day or reckoning & will eventually cease to exist.

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 - Fox Business News - 09 December 2011

9th of December 2011 The Gloom Boom & Doom Report with Editor Marc Faber on why the European Union should be dissolved. Marc has been so accurate over the last 24 months & people would be wise to take on board what he is relaying here.

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 Equities relatively Cheap

Marc Faber on Outlook for Equities, Euro, China Dec. 7 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for equities and his investment strategy. Faber speaks with Lisa Murphy and Adam Johnson on Bloomberg Television's "Street Smart." (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.

Marc Faber Outlook for 2012

Dec/07/2011 Financial Sense Newshour An In-Depth Interview with Dr. Marc Faber . Marc Faber covers Inflation, China, Gold, Resource Scarcity and much more ,Jim is pleased to welcome back Dr. Marc Faber for a wide-ranging discussion. Dr. Faber covers inflation, China, gold, war and resource scarcity, democracy and education, market volatility and the importance of diversification.

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: China Boom will Doom & Economic Gloom

Marc Faber's big China short. Forget Europe, says Faber, it's China that's in for a major slowdown, with CNBC's Simon Hobbs and the Money In Motion traders.


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 share of labor income or salary as a percent of GDP going down

Marc Faber : “The American consumer went shopping but it’s not supported by income growth. If you look at the share of labor income or salary as a percent of GDP going down, what is happening is that people are again borrowing and diminishing their savings rate and I don’t think that is very sustainable.”


 
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 optimism shown in the markets due to bailout and monetization

Marc Faber : “Basically the optimism arises from some sort of a bailout and monetization. But if you look at the market, OK it’s up, but gold is also up and oil is up.And I do not think it really helps it just postpones the problems like in the US, we monetized time and again and it’s just postponing the problem. In the end, crisis will eventually happen. The problem of the Western world is that there is too much debt and too many unfunded liabilities.” - in Fox Business News 28 Nov 2011




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

Europe will monetize the debt just like in the US

Marc Faber : “The big picture endgame in Europe is that they will also in one or the other form monetize like in the US and that will postpone the problems , but it will not solve them.” - in Fox Business news 28 Nov 2011



 
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 : do not expect too much from the current market rally

Marc Faber : “The rally came from a very oversold level. We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.”

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

Bonds are not attractive

Marc Faber : “A year ago I said that if the yield on the 10-year Treasury bond dropped to around 3% I would be tempted to short it again. The 10-year now yields 3.2%. You could short the TLT, the iShares Barclays 20+ Year Treasury Bond, an ETF of long-term bonds. It has rallied from 87.30 to 98. If we are in a deflationary environment in the U.S., the Fed will print money again. Therefore, bonds aren’t attractive.”



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

Shorting the Australian dollar as a way of playing the slowdown in China

Marc Faber : “Everything I recommended at the January Roundtable is still OK, but I wouldn’t rush to buy now because if China slows more, other Asian nations will suffer. I also recommend shorting the Australian dollar as a way of playing the slowdown in China, which will lead to reduced demand for industrial commodities. Australia, a major commodities producer, is like a warrant on China. I would rather short the Australian dollar because the Chinese market already has fallen 30% from its August 2009 high.

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

Government Bonds not 100 percent Safe

Marc Faber - Bloomberg Radio Interview 26 Nov 2011 : ...an increasing number of investors are becoming aware that actually government bonds are not as safe as they may have thought originally or previously and so they are moving probably money out of bonds and cash into equities

The S&P has done actually well and it will certainly continue to outperform the other markets ,

the market is oversold and we are set up for a December rally

I do not like government bonds of any sort , equities in my opinion are more attractive than bonds ...

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

Insider Selling concerns me

Marc Faber : I would just like to say about the insider selling, this is also something that I follow and that concerns me. But having said that, and being on the boards of different companies, let me explain to you what happens. Let’s say I am on the board of a company and I get stock options, and I exercise the stock options and then to diversify, I may sell some of the shares I own in that company through my stock option plan, and then I may go and buy other stocks in the market, or make other investments. Because of the proliferation of option plans in the last twenty years or so, there is a natural tendency that when a CEO sells shares, it is reported, but when he invests with hedge fund management, or buys shares in other companies, it is not reported. I think there has been a change in the validity of this statistic. But I agree with you, at the present, the ratio is so huge between selling and buying, that it is a rather negative indicator. Then, when you combine that with other indicators that are also negative, a hugely over-bought market, for instance, I think some caution is in order.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Its Going To Be Very Difficult For Markets To Make A New High

I think it`s going to be very difficult for markets to make a new high above (in the case of the S&P 500 Index), the May 2 high at 1370. I think there is a lot of supply between this level, 1260 and 1350, so I doubt we will see new highs. But that does not mean the market cannot rally another 5 percent or so.

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

Markets are very volatile partly because interest rates are at zero percent

Marc Faber : Markets are very volatile partly because interest rates are at zero percent...and in real terms, negative which essentially stimulates speculation. In addition, we have high frequency trading that lead to very wild swings in the markets. - in Bloomberg TV

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

QE3 Is Just A Matter Of Time

A third wave of quantitative easing by the US Federal Reserve is just a matter of time. - in Taipei Times

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 Invented Paper, They Know How To Print Money

Chinese invented paper. They know how to print money. - in Taipei Times

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 Inflation in China is Somewhere Between 12 Percent And 15 Percent

Don’t believe China’s consumer price index stands only at 5 percent. The truth is somewhere between 12 percent and 15 percent... The real-estate bubble is so evident that Chinese property shares are very weak as the volume of real-estate transactions goes down and prices fall. - in Taipei Times

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 revisits Zurich University of economics

Marc Faber : If I could go back in life I would definitely study economics again. What I have noticed in life is, if you are a lawyer or if you are a medical person, you don`t have the geographical freedom as I had in economics. I could practice economics anywhere in the world, in Latin America, in the Middle East, in Asia...and I could travel a lot and see the entire world.

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 going to be very difficult for the market to make a new high

Marc Faber : well I think it is going to be very difficult for the market to make a new high above in the case of the S&P May 2 the S&P at 1370 I think there is a lot of supply between this level here between 1260 to around 1350 , so I doubt we will see new highs but it does not mean that the market cannot rally another 5 percent or so - in 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.

High frequency trading leads to very wide swings in the market

Marc Faber : I have a view , my view is nobody knows , because markets now are very volatile partly because interest rates are now at zero percent and in real terms negative which essentially stimulate speculation and in addition we have high frequency trading that leads to very wide swings in the market because the high frequency traders are basically based on models that are momentum like models in other words the market goes up everybody goes long the market goes down everybody goes short and what we had is a peak as I mentioned on May 2nd at 1370 on the S&P and then we went down sharply in late July August and bottomed out on October the 4th at 1074 on the S&P when everybody turned negative and after we had this very sharp rally almost 20 percent and I think this rally may carry on somewhat and that the super bear that think the S&P drops to 400 for the time being it will have to go to hibernation - in 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.

Marc Faber - Bloomberg TV - 14 Nov 2011

Nov. 14 (Bloomberg) -- Marc Faber talks to bloomberg about the Global Stocks, Europe Crisis, Fed Marc Faber, publisher of the Gloom, Boom and Doom Report," talks about the outlook for global stock markets. Faber also discusses Europe's sovereign debt crisis, the U.S. economy and Federal Reserve monetary policy. He speaks from Ho Chi Minh City, Vietnam, with Susan Li on Bloomberg Television's "First Up."(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.

Allocate 25 percent to Gold Bullion

"The best thing an individual investor can do right now is to hold 25% of his assets in equities, 25% in real estate, 25% in gold, and 25% in cash," "If equities, real estate, or gold drop another 10% to 20%, put more cash in." said Faber last week. - in Bullion Vault

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

Investors Should Accept Greek Writedown of 90 Percent

“Greece is bankrupt, whether they want to admit it publicly or not,”

“It will need a 90 percent writedown, but that’s not going to happen. What will probably happen is a 50 percent writedown.” - in 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.

In America we have a tyranny of the masses

"So you end up with kind of on the one hand a tyranny of the masses where you distribute all kinds of goodies to people. Like in America roughly 50% of the population gets a handout one way or the other from the government. So by continuing to support these people, you get their votes. "And at the other side of the spectrum, you have the people that pay the tax, the big corporations, and the well-to-do people, and they also want to maintain their interests, which is natural." And so you have a completely dysfunctional political system -in 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.

No One Forced Banks And Insurers To Buy Greek Bonds

No one forced banks and insurers to buy Greek bonds. The crisis we have today won’t be fixed and the problems won’t be solved, they will be delayed. And then one day, we’ll see the final crisis, where numerous governments will go bankrupt. - in Bloomberg TV

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

Rising Living Standards In the Emerging World Will Keep Commodity Prices Well Bid

Rising living standards in the emerging world will support demand for commodities — and keep us paying through the nose. Faber observes that if you double someone’s income from $1 million to $2 million, their spending on raw materials “except maybe cocaine” doesn’t rise. Not so for someone on a few thousand dollars a year. They buy cars and the other trappings of middle-class living. - in WSJ Blog, covering World Commodities Week in London

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

Rates Will Stay Negative In Real Terms

Dr. Marc Faber, editor of the Gloom Boom & Doom Report, believes the Fed will keep rates near zero even longer than 2013. In his November commentary, he points to the opinion of Chicago Federal Reserve Bank President Charles Evans, who wants the Fed to “commit itself to keep short-term rates at zero until the unemployment rate falls below 7 percent or the outlook for inflation over the medium term goes above 3 percent.” If Evans has his way, Dr. Faber extrapolates that rates could “stay at zero for five or even 10 years (and negative in real terms).” - in DailyMarkets.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.

Marc Faber Interview by Chris Martenson

Bad Medicine: Dr. Marc Faber on Bernanke's Quack Cures This podcast was originally published on January 16, 2011 "If there's one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution." So says famed investor Marc Faber in an interview he gave to ChrisMartenson.com this week. In it, Chris and he dive deep into the Fed activity (encouraged by Washington and Wall Street) responsible for the current severe health of our economic system. Both feel that once you understand the nature of the critical role the Fed now plays, you have much better clarity into what the most probable outcomes for our economy and financial markets will be.

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 dont think we will make a new high above 1370 on the S&P

Marc Faber : well, I think that the super bulls and super bears will be disappointed that we're in a trading range between 900 on the S&P and say1350, something like this. I don't think we will make a new high above the may 2nd high on the S&P which was 1370 , but I'd like to make the following observation , if you print money in the US it does not mean that it creates bubbles in the US , it can create bubble in your neighboring region , say, Latin America or Asia or it can create bubbles in precious metals or in commodities or in home prices somewhere else in the world or say, for instance, in China. and if the Chinese bubble burst one day which inevitably will happen, maybe not tomorrow but may be in three months,may be in three years, when it happens, it will have devastating consequences for the global economy. - in 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.

I think that stocks will continue to go up

Marc Faber : well, I think that I am very constructive and a great optimist in life otherwise I would commit suicide in view of the kind of governments we have nowadays because for sure they will take wealth away from the well to do people one way or the other. and from the middle class they will take it away through inflating the economy and lowering the standards of living , the typical household in western Europe in the U.S,. has lower standards of living today than, say, 20, 30 years ago. there's no question about this. and so I think that we are in a very difficult situation and that deleveraging must occur the governments don't want to recognize that. and so the fiscal deficits are out of hand. but it doesn't mean that stocks will go down when you print money. everything goes up at different times, different asset classes. and I think that stocks may still continue to go up and I rather own equities than government bonds for the next ten years. - in 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.

as long as we have Ben Bernanke and Janet Yellen at the FED they will print money

Marc Faber : Well before they'll go bankrupt they'll print money and they can print endless money and as long as we have Ben Bernanke and Janet Yellen at the FED they will also print money ,and so they can postpone the end game endlessly, endlessly not, but say for another five to ten years. but each money printing exercise brings about unintended consequences and these unintended consequences are partly higher inflation rates than would have been had no money been printed , I just read today that education cost this year will rise by 8 percent and that you know the typical household cannot afford anymore good education so the students have to get student loans now the student loans almost exceed consumer credit outstanding. so you essentially create more borrowings on top of an over leveraged society and eventually the hour of truth will happen - in 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.

The governments today are no more representing the interest of the communities

Marc Faber : ....Exactly what I mean, I think the governments today are no more representing the interest of the communities but they are defending their personal interests and essentially you can buy votes by voting for people who hand out money such as Mr Obama , I think he has good chance to be re-elected by simply distributing money, 48% of americans today, they get some kind of government subsidy and the problem is, in Italy, in Greece, in Spain, everywhere, entitlements should be cut now and not in 2026. that will be far too late. but nobody wants to accept the reality. - in 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.

The end crisis will be postponed until the sovereigns go bankrupt

Marc Faber : well, I don't know what other people think but what I think will happen eventually and there are so many contradictory statements coming out that nobody really knows ,But eventually the same will happen as i the United States the ECB will print money one way or the other and the debts that essentially should be written down to a realistic value will continue to be carried on the books of banks at unrealistic values so the end crisis will be postponed until the sovereigns go bankrupt.

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

Restrictive regulatory policies curtail any initiative by the small businessman

Marc Faber : We have expansionary fiscal policies, we have expansionary monetary policies but we have restrictive regulatory policies and it curtails any initiative by the small businessman . - in 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.

Western Economies Cannot Grow

Marc Faber : We've had far too many interventions in the Western world where the share of total economy that goes to government and is government-sponsored has grown. That essentially makes it very difficult for the Western world to grow sustainably...I don't see how the Western world including the U.S., Japan and Western Europe can grow. They're going to stagnate. - in 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.

Americans need to work more for lower salaries

Marc Faber : I tell you what the u.s. needs. the u.s. needs a Lee Kuan Yew who stands in front of the u.s. and tells them, listen you lazy buggers , Now you have to tighten your belts, you have to save more,you have to work more for lower salaries and only through that will we get out of the current dilemma that essentially prevents the economy from growing - in 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.

The lack of saving is the problem of the united states

Marc Faber : Well I tell what you to do. I think a flat tax on everybody would be actually a good measure and I think to reduce the regulatory environment in the u.s. and create again an environment. we have expansionary fiscal and monetary policies. but we have restrictive regulatory policies. and it curtails any initiative by the small businessmen. and the large businessmen, he doesn't employ and invest capital in the u.s. does he that in china or somewhere else in the world where the regulatory environment is more favorable. if you look at net investments in the u.s., it's gone down for the last 20 years. and it's now negative. in other words, basically the capital stock of America is not being replenished. but it's being replenished somewhere else. and at the same time, the policies ofthe Keynesians have always encouraged spending. we're not going to get out of recession by savings. spend, spend, spend. that is wrong. the lack of saving is the problem of the united states - in 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.

Wall Street used the system. but didnt create the system

Marc Faber : Basically we have the Keynesians and we have the democrats and I am not saying that all democrats are equal, but they want interventions and we had far too many interventions in the western world where the share of the total economy that goes to government and is government sponsored has grown. and that essentially makes it very difficult for the western world to grow substantially. add to that huge level of debts, I don't see how the western world, including the U.S., Japan, and western Europe can actually grow. they're going to stagnate. and when you have stagnation over a longer period of time, then people start to ask questions and then they go after minorities, and Wall Street is a minority they are a minority that anyone else would have done the same. they used the system. but they didn't create the system. the system was created by the lobbyists and by Washington. so they should actually go to Washington and also occupy the federal reserve on the way. - in 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.

Global Liquidity Is Tightening

Marc Faber : Despite the fact that the European Central Bank and the European governments will flood the market with liquidity to bail themselves out, global liquidity is tightening. Whenever global liquidity is tightening it is bad for asset prices but good for the U.S. dollar, as was the case in 2008. - in 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.

CNBC Video Interview: October 11th

CNBC Video Interview: October 11th , Marc Faber of the Gloom, Doom & Boom Report, shares his outlook on the global economy on 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.

Bullish on the US Dollar because the Global liquidity is tightening

Marc Faber is bullish on the US Dollar because the global liquidity is tightening Despite of the fact the ECB and European governments will flood the markets with liquidity to bail themselves out, global liquidity is tightening," he says. "It's bad for asset prices but it's good for the US dollar. - in CNBC 11th Oct 2011

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 will be increasingly perceived as cash and less as commodities

Marc Faber : If you look at the environment we are in , there are a lot of similarities with 2008 where basically the financing for the exploration companies dried up the global liquidity shrunk asset prices collapsed but the US Dollar and the US government bonds were strong , and we have a repeat here of that situation ,my saying is that industrial commodities are vulnerable and still remain vulnerable . In the case of Gold and Silver I think increasingly they will be perceived as cash and increasingly they will move in strong hands- in CNBC-TV18 


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

Stocks Are Oversold But they still Can Go Lower

Yes, stocks are very oversold, but that does not mean they cannot go lower. The dreadful price action in both Copper and the Shanghai Composite points to new lows for the equity markets. After US stocks make a new low below 1100 on the S&P 500 (SPY), there could be a year-end rally followed by a more meaningful decline into 2012. Investors should use any bounce in stocks as an opportunity to reduce their equity exposure. - in Seeking Alpha, from the Gloom, Boom & Doom Newsletter

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 Treasuries are Overbought & Susceptible To A Large Correction

Despite being bullish on the US dollar, Faber does not recommend treasuries, noting that they are overbought and susceptible to a large correction. - in Seeking Alpha, form the Gloom, Boom & Doom Newsletter

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

Short Term Bullish on US Dollar

It's true that the dollar has no intrinsic value and is being printed into infinity, but the US dollar will be your best friend for the next few months. As global liquidity contracts on EU debt concerns and a possible hard landing in China, Faber advises investors to be long the dollar. Note this is a short-term call; longer term the dollar is going to zero. - in Seeking Alpha, from the Gloom, Boom & Doom Report

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

Slowdown demand for Copper Is Signaling A Very Serious Slowdown In China's Economy

The price of copper is signaling a very serious slowdown (if not complete collapse) in China. This is what is really behind the move down in all commodities. A hard landing in China would be devastating for the global economy. The Shanghai composite is making new lows along with copper, which is very bearish. Also stay away from the Australian and Canadian currencies. If China crashes, these markets will get massacred. - in Seeking Alpha, from the Gloom, Boom & Doom Newsletter

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 Markets In China Can Drop Massively

Marc Faber : Some real estate markets in China will blow up & massively so prices could easily drop 40 - 50 percent - in Reuters

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

Video Interview CNBC 26 Sep 2011

Gold May Fall to $1,100 says Marc Faber, author of the Gloom, Boom and Doom Report, tells CNBC that he thinks gold could fall to $1,100 an ounce by the end of the ongoing sell-off

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 at these level is quite oversold but it Could Fall to $1,100/oz

Marc Faber , author of the Gloom, Boom and Doom Report, tells CNBC that he thinks gold could fall to $1,100 an ounce by the end of the ongoing sell-off "We overshot on the upside when we went over $1,900," he said "We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200." he added



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

for the US it is more important to have a strong dollar than to have a strong stock market

Marc Faber : ...My view has always been that if the S&P drops to around 900 - 950 we get QE3 for sure , but one investors are looking at the stock market and that stocks overseas and it went down yesterday sharply but on the other hand I am very happy because the dollar went up , I think for the US it is more important to have a strong dollar than to have a strong stock market- in Reuters 



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

You do not need the FED to tell you that something is wrong with the economy

Marc Faber : you do not need the FED to tell you that something is wrong , the stock market in the US peaked out on May 2nd of this year when the S&P went to 1370 and since then most stocks are down 20 percent , the Banks have collapsed yesterday some of them made new lows and the economic sensitive sector like the materials copper shares iron ore steel have been very weak so you do not need the FED to tell you that something is wrong with the economy , the stock market is telling you globally that something is awfully wrong ,
 - in Reuters

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 decision of Mr Bernanke not to expand the balance sheet is the best decision I have seen for a long time from a US central banker

Marc Faber : ..It is going to be huge but we do not know when because the Central Banks around the world they are going to print print and print , whereby I have to say that today the decision of Mr Bernanke not to expand the balance sheet is the best decision I have seen for a long time from a US central banker , and people say the stock market when down WOW ! I lost some money ! but the dollar went up we are international investors we want to see a strong dollar never mind the stock market ...

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 Gold price is cheaper than in the 1980s when it was around 400 dollars an ounce

Marc Faber : I have been writing every month that people should accumulate gold. Yes, there is more room for gold to appreciate further. Most people do not own gold. Most people think gold prices are very high. Today, the gold price is cheaper than in the 1980s when it was around 400 dollars an ounce, considering the increase in global monetary base and the US money printing.




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 is an insurance against a systemic failure

Marc Faber : I think it is important for investors to understand the role of gold as an insurance against a systemic failure and not necessarily as a hedge against inflation. I should add that I own gold for both reasons, believing that it will perform well in both an inflationary and deflationary environment. In addition, I am not selling any gold but traders should realize the gold price is extremely overbought and that it could easily drop toward the 200-day moving average – that is, between $1,500 and $1,600 (not a prediction). As I just said, I am not selling my gold because I expect much higher prices in future. But, near term, both T-bonds and gold appear vulnerable to a more serious correction. - in Beacon Equity 




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

They wont call it QE3 but indirectly it will be QE3

Marc Faber : "they'll come in with some kind of package but they won't call it QE3 but indirectly it will be QE3 than there will be more QEs until the final collapse happens " , Faber says , and when asked when he thinks the final collapse happens he answers : " well it could be three years ten years , I do not think it will happen right away " - in Yahoo Finance


 
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 Should Be Worth between $6,000 and $10,000 per ounce

Marc Faber : According to some statistics the gold price today should be worth between $6,000 per ounce and $10,000 per ounce. - in Yahoo Finance


 
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 Interview with Yahoo Tech Ticker - 09/09/2011

Marc Faber : look I have a TV in my office , if I switch it on once a month to look at the news that's about it I am not interested in the Garbage these government officials broadcast either they are lies or they are distrustful , You can't trust them anymore because they produce statistics that are completely unrealistic. "Basically if you believe in a market economy and capitalistic system you don't believe in government intervention," Faber says. "If you want to have a properly functioning economy it has to be a market economy with all its drawbacks and disadvantages and the pain for individuals. That is the only way [the economy] will function."

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

Obama Job Plan is A Complete Joke

Marc Faber : The package is another complete failure of Keynesian economics and corrupt interventions. This all amid talk of deficit reductions. The package is a complete joke. - in 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.

Gold an insurance against systematic failure and problems in the financial markets

Marc Faber :  I don’t think that gold is in a bubble, When you buy gold, it’s an insurance against systematic failure and problems in the financial markets. I’d buy every month a little bit of gold - Faber, publisher of the Gloom, Boom and Doom report, said in a phone interview yesterday from Chiang Mai, Thailand.- in 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.

We will not have an official QE3 announced immediately

Marc Faber : Yes, I’m sure money printing will come back. We will not have an official QE3 announced immediately, but I think that if the stock market weakens further, they (central planners) will take some additional printing measures along with Europe for sure. - in Liberty CPM 




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

9/11 expanded the willingness of policymakers in the U.S. to print money

Marc Faber : There’s no question that today, 10 years after 9/11, the entire financial structure of the U.S. is much worse than it was in 2000 and 2001. Household credit mortgage debt, government debt, unfunded liabilities, less people employed and the population is up. The U.S. is much worse off than before 9/11. For that we have to thank expansionary monetary policies. The Fed cut interest rates in January 2001, but because of 9/11, they cut it further to 1% and left it at 1% until June 2004. The recovery in the U.S. began in November 2001. Interest rates were far too low, far too long. And even after June 2004, credit growth increased. 9/11 gave them ammunition to keep an expansionary monetary policy that led to excessive leverage, and excessive credit growth that led to the housing bubble of 2007/2008. What has also changed after 9/11 is that geopolitical considerations, while not the most important issue today in the minds of most investors, at least have become more important. The engagement of America, particularly less so in Iraq but moreso in Afghanistan and Pakistan, has led to enormous instability in that region. Plus the fact that the cost to the U.S. economy of the Iraq invasion and the Afghani expedition must run between $1 and $2 trillion. The second consequence of the war is the U.S. dollar is weak. Nobody can tell me the weak dollar is desirable. It’s a decline of the living standards of Americans relative to other countries in the world. The U.S., instead of spending on the war, could have used that money to rebuild crumbling infrastructure. Without the war effort, I suppose that there might have been less expansionary monetary policies and slower increases in commodity prices. In the second half of 2007 and first half of 2008, the global economy was slowing and in recession, but because of expansionary monetary policies commodity prices went ballistic and oil rose. It wasn’t because of demand going up; it was because of artificially low interest rates. 9/11 expanded the willingness of policymakers in the U.S. to print money. - in Marketwatch


 
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 on Japanese banks, brokerages and insurance companies

Marc Faber : “They have a better loan portfolio than the European banks,” Faber said of Japanese banks. “The banks in Asia are in a very solid position. All these are a play on the recovery in the stock market in Japan.” - in www.ibtimes.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.

Money as a store of value is no longer existent

Marc Faber : ...well I think everybody knows money has different functions one of them is obviously to facilitate the exchange of goods and services the other one is to be a store of value and the third one is a unit of account , and I think that with zero interest rates and cost on living increasing in the order of 5 to 10 percent for most families in the United States , Money as a store of value is no longer existent and that's what I mean with Honest and Dishonest Money , and if look at the monetary base how it's grown since the mid 1980s and especially if you look at M1 that recently has reached the growth rate that is the highest in 35 years then you will ask yourself what will ultimately the value of paper money be - in Bloomberg Radio Interview



 
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 Keynesian economics create again volatility in the market

Marc Faber : Many things don`t make perfect sense because markets are rigged. I am not saying they are rigged by purpose, but artificially low interest rates lead to very high economic and financial volatility and with the intervention, the Keynesian economics, you basically have more and more regulation and more patchwork that creates again volatility in the market. - in Bloomberg Radio


 
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 Outlook

Marc Faber : For the next 6 months gold will rather decline than go up. - in Bloomberg Radio


 
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 would not surprise me to see gold down to $1,600

Marc Faber : It would not surprise me to see gold down to 1,600 dollars because recently there has been probably a bit too much enthusiasm. At the same time, what is interesting is that gold in this latest bull market started to rally at the end of June at 1,600 and it went to 1,900. At the same time, treasuries also started to rally. .... This is in a way very illogical because you would want to be in bonds in a highly deflationary environment, and you would rather want to be in gold in an environment where you think money printing will drive up prices. - in Bloomberg Radio 03 Sept 2011



 
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 will expand

Marc Faber : “I do not think that investors fully appreciate the enormous shift that has and is occurring in the balance of economic power from the Western world to emerging economies,” “I happen to feel that somewhere in the world we can make 7% on equities for the next 10 years,” “I can buy you a portfolio of high-dividend stocks in Asia that would have a yield of 5% to 7%.” “They have a better loan portfolio than the European banks,” Faber said of Japanese banks. “The banks in Asia are in a very solid position. All these are a play on the recovery in the stock market in Japan.” - in www.ibtimes.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.

Gold is worth its weight

Marc Faber : “The function of paper money is to facilitate the exchange of goods and services, to be a store of value and a unit of account — the U.S. dollar fails on all three,” . “Intelligent people, instead of holding cash in U.S. dollars with zero interest rates, why not hold money in gold and silver?” “Physical gold in a safe deposit box is the safest,” “Forget about huge capital gains. I would look at capital preservation. I want to preserve my capital.




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 Prices : I Hope It Will Drop 100 Or 200 Dollars

Marc Faber :The gold price is coming down, and I hope it will drop 100 or 200 dollars. Not necessarily a prediction. I think we will go down in a correction because there has been too much enthusiasm recently. - in 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.

There is hardly any growth in the western world

Marc Faber : I think we never really came out of the last recession in many different sectors of the economy, although in some sectors we came out. And when you look at the world, the emerging market has continued to grow throughout the period from 2008 up to today. There is a slow down occuring in emerging economies but in the western world there is hardly any growth. - in 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.

Banks In Asia Are Sound

Marc Faber : Banks in Asia are reasonably sound because they never went and invested in all kinds of Greek bonds, and Portuguese bonds and so on and so on. - in 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.

Faber commenting on Gary Schilling bet against copper:

Marc Faber : “I have known Gary Schilling since 1970 when we worked together. He has been a frequent bear about commodities and about copper. I happen to think copper is likely to come down, but I would not bet too heavily on it, because it takes a long time to bring on additional copper mines. Unless the Chinese economy collapses, the demand for copper will stay relatively high. If the Chinese economy collapses and Jim Chanos is right, then you want to be short not only copper, but short everything.”
 



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

On insider buying

Marc Faber : “The insider buying has picked up, but there is still a lot of insider selling. Compared to all the selling in the last six months the buying is relatively muted. The insiders in general are a group of people against whom I would not bet against necessarily. All I am saying is I am very bearish. I think we will have inflation. I think the Treasury market is a disaster waiting to happen. I think the economy will slow down. They’re going to print money and we will go to war at some stage somewhere. So, you are probably better off in equities than in bonds. My favorite investment remains gold. As it happens the gold price is coming down, and I hope it will drop $100 or $200. Not necessarily a prediction. I think we will go down in a correction because there has been too much enthusiasm recently.”



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 how long his view of the market is

Marc Faber : “I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P–that we will not go through. My view is you have a lot of people with strategies that are very bullish. They have a yearend target of around 1,400-1,450 on the S&P. Then you have the super bear. I think both camps will be disappointed.”



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 asset allocation

Marc Faber : coming back to your question about the asset allocation , I would hold 25 to 30 percent in Equities , 20 to 30 percent in physical Gold , I would own some bonds and cash and I would own say 25 to 30 percent in real estate which people could own by owning say Asian real estate companies including REAPs - in 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.

My Favorite Investment Remains Gold

Marc Faber : So, you are probably better off in equities than in bonds. My favorite investment remains gold. As it happens, the gold price is coming down, and I hope it will drop $100 or $200. Not necessarily a prediction. I think we will go down in a correction because there has been too much enthusiasm recently. - in Beacon Equity



 
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 : I dont trust anyone

Marc Faber : "I think it's important in today's very uncertain world to diversify not only the various asset classes, in other words equities, bonds, gold, real estate and also the custody of your assets should be in different jurisdiction , I don't trust anyone" - in CNBC 23 Aug 2011



  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 am as bearish as the greatest bear is

Marc Faber : if you compare treasury bond yields and equities , Equities look reasonably attractive compared to treasuries , I think we will have zero and below zero interest rates for the next ten years in the real terms in other words inflation adjusted , to keep money in cash is a disaster for the next ten years , and finally the mood is so negative right now , as a contrarian you do not take a huge short position when people are as bearish as they are now , and when insider buying has peaked up as much , but believe me I am as bearish as the greatest bear is , it just that I do not believe that stocks will implode - in 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.

As a contrarian you do not take a huge short position when people are as bearish as they are now

Marc Faber : if you compare treasury bond yields and equities , Equities look reasonably attractive compared to treasuries , I think we will have zero and below zero interest rates for the next ten years in the real terms in other words inflation adjusted , to keep money in cash is a disaster for the next ten years , and finally the mood is so negative right now , as a contrarian you do not take a huge short position when people are as bearish as they are now , and when insider buying has peaked up as much , but believe me I am as bearish as the greatest bear is , it just that I do not believe that stocks will implode - in 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.

The Treasury market is a disaster waiting to happen

Marc Faber : All I am saying is I am very bearish. I think we will have inflation. I think the Treasury market is a disaster waiting to happen. I think the economy will slow down. They’re going to print money and we will go to war at some stage somewhere. - in Beacon Equity 



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 physical gold in a safe deposit box, ideally outside the US

Marc Faber : I prefer if investors hold physical gold in a safe deposit box, ideally outside the US, in various locations...Switzerland, Singapore, Hong Kong, Australia, Canada...I think it’s important in today’s very uncertain world to diversify, not only the various asset classes...but also the custody of your assets should be in different jurisdictions.




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 is the most honest form of Cash

Marc Faber : People should buy gold today because there is a huge run in precious metals recently and I think they need to consolidate and shake out the weak holders, , everyone should hold some gold because it is a form of cash. Gold is the most honest form of Cash



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

Copper is likely to come down but I would not bet too heavily on it

Marc Faber : copper is likely to come down but I would not bet too heavily on it because it takes a long time to bring on additional copper mines , and unless the Chinese economy collapses the demand for copper will stay relatively high , but if the Chinese economy collapses and Jim Chanos is right then you want to be short not only copper you want to be short everything !  - in 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.

We Can Rally For A While

Marc Faber : We had rally from the low on the ninth of August at 1,101 on the S&P to almost 1,200. Then we came right down again. Basically we did not make new lows. And now I think we can rally again for a while. I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P–that we will not go through. My view is you have a lot of people with strategies that are very bullish. They have a year end target of around 1,400-1,450 on the S&P. Then you have the super bear. I think both camps will be disappointed. - in Bloomberg.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.

Bernanke will say that they are monitoring the situation

Marc Faber : I think what Bernanke will say is that they are monitoring the situation, and they will take ‘appropriate measures’ when they are required. To some extent we are in midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013, they basically encourage financial institutions to borrow short-term and to buy 10-year Treasuries.  - in 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.

Marc Faber on The Squawk Box CNBC 23 Aug 2011

People should buy gold today because there is a huge run in precious metals recently and I think they need to consolidate and shake out the weak holders, Dr. Marc Faber , author editor and publisher of the Gloom, Boom, and Doom Report, who adds that everyone should hold some gold because it is a form of cash. He also weighs in on emerging economies, saying the individual household is not highly leveraged as most in the western world are.

Marc Faber :"I'm not certain that people should buy gold today because we have a huge run in precious metals recently and they need to consolidate or shake out the weak holder. I would expect the correction in gold to occur. I think that everybody should have some gold if they want to own some cash because gold is the most honest form of cash people can own" "well, it's (ETFs) a claim on physical gold. i prefer if investors hold physical gold in a safe deposit box ideally outside of the u.s. in various locations, Switzerland, Singapore, Hong Kong, Australia, Canada. " "I think it's important in today's very uncertain world to diversify not only the various asset classes, in other words equities, bonds, gold, real estate and also the custody of your assets should be in different jurisdiction , I don't trust anyone"
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 S&P Wont Surpass 2011 High of About 1,370 - 23 Aug 2011

Aug 23 2011 Bloomberg -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global financial markets, commodities and investment strategy. Faber speaks with Carol Massar and Matt Miller on Bloomberg Television's "Street Smart."

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

Bloomberg TV Carol Massar and Matt Miller talk to Marc Faber

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global financial markets, commodities and investment strategy. Faber speaks with Carol Massar and Matt Miller on Bloomberg Television's "Street Smart."


<iframe width="360" height="300" src="http://www.youtube.com/embed/MvK5qxgETCg?rel=0" frameborder="0" allowfullscreen></iframe>
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 Trend Is Up, But Near Term It Can Drop

I am not sure how high the price of gold or silver will increase but when I consider the further inevitable growth of the US and other governments’ debts, the creation of paper money in the world and especially at the low gold ownership rate in the world, I am confident that the price trend of gold is up. (But) near term I think the price could drop. - in The Jakarta Globe

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

If The S&P Goes To 1000 Or So, The Fed Will Pump Money Into The System Again

Basically we have a lot of volatility. As you know over the last 12 months the S&P 500 Index rose from 1010 on July 1st, 2010 to a peak on May 2nd of 1370. Then we dropped to 1101 and now we are at 1178. So we have a lot of volatility. I think the market may rebound somewhat more here because we are very oversold and some technical indicators have turned positive including insider buying. But in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we will drift lower. Not to say that we will collapse because if the S&P 500 Index drops to 1000 or so, the Fed would certainly pump again money into the system. - in Fox Business News,

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

10 - 30 Year US Treasuries Are A Suicidal Investment

It’s a suicidal investment to own 10-year or 30-year U.S. Treasuries. U.S. government bonds are junk bonds. As long as they can print, they can pay the interest. But another way to default is to pay the interest and principal in depreciating currency.- in MarketWatch.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.

There Will Be Many More Takeovers And Industry Consolidation In The Years Ahead

The corporate sector is not spending much money on capital investments and new investments — that’s why they have this huge hoard of cash. There will be many more takeovers and industry consolidation in the years ahead. It destroys jobs, but this is what will happen. As industries consolidate, they get more pricing power, and the cost of living increases. - in MarketWatch, Aug 19

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

Paper Money Has Lost Its Value. Hyperinflation Is The Pattern To Come.

It would be very dangerous to say "I don’t trust stocks, gold, real estate, I want to keep my money in cash. That’s a way to end up losing a lot of money... We’re in a paradoxical situation where under a traditional monetary system the safest places are cash, Treasury deposits, government bonds. Nowadays, they have been made by monetization into the most unsafe assets from a longer term perspective. Weak economies usually have higher inflation rates than stronger economies. In weak economies you have loose fiscal policies and money printing. And the U.S. is the world champion in loose monetary policies. I don’t believe a single word of what the Bureau of Labor Statistics is printing about inflation figures. Paper money has lost its value. Hyperinflation is the pattern to come. - in MarketWatch.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.

Long-term U.S. Treasuries are of no value

Marc Faber : Gold is likely to correct, possibly by $100 or $150, but I continue to recommend gradual accumulation. As long as the trio of Obama, [U.S. Treasury Secretary Timothy Geithner] and Bernanke are in power, gold is destined to move higher. Long-term U.S. Treasuries are of no value. They will default by paying interest in a worthless currency. - in Baron's Blog 



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 am not completely bearish about stocks

Marc Faber : “I am not completely bearish about stocks ” . “If I have cash, government bonds and stocks, for the long term, I’d take stocks.” Just not necessarily U.S. stocks.  “My assumption is that March 2009 was a major low, and that we will not go back below that low,”  “Can we go to 900 on the S&P? Yes.” But as the S&P 500 slides closer to 1000, the Federal Reserve could step in with a third round of stimulus for investors to cheer, Faber said. Fed action, he noted, “may not lift stock prices to new highs, but it may stabilize them. If you print money, stocks will not 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.

Likely there will be some wither official or unofficial type of QE3 and QE4

Marc Faber interviewed by Bloomberg TV on 19th August 2011 -  " well actually it may not ( The treasurys bubble) burst for a while because obviously the FED will keep short term rates at close to zero for extended period of time and likely there will be some wither official or unofficial type of QE3 and QE4 , but in my view an investor who today buys a ten year treasury with this kind of yield it is today at 2.08 percent is not going to make any money in the next ten years either because yields will go much higher or because the dollar will go much lower "




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 is worth its weight

Marc Faber : “Intelligent people, instead of holding cash in U.S. dollars with zero interest rates, why not hold money in gold and silver?”   - in Barron's Blog




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 will expand

Marc Faber : “I can buy you a portfolio of high-dividend stocks in Asia that would have a yield of 5% to 7% … The banks in Asia are in a very solid position. All these are a play on the recovery in the stock market in Japan.”   - in Barron's blog



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

Stocks offer some safety

Marc Faber : “My assumption is that March 2009 was a major low, and that we will not go back below that low.”  - in Barron's Blog



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

Cash is Trash

Marc Faber : Cash is trash. “Paper money has lost its value. Hyperinflation is the pattern to come.” - in Barron's blog 


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

Avoid Treasuries

Marc Faber : “The dollar may rally somewhat, but clearly in the long run the dollar and other paper currencies — the euro is not much better — will have a depreciating tendency vis-a-vis honest money: gold and silver.”   - in The Barron's Blog



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

You are better off in equities than in government bonds and cash

Marc Faber : “If you’re bearish about the world, you’ll probably be better off in equities than in government bonds and cash.”


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

Financial conditions are today worse than they were prior to the crisis in 2008

Marc Faber : Financial conditions are today worse than they were prior to the crisis in 2008, The fiscal deficits have exploded and the political system [in both the U.S. and Europe] has become completely dysfunctional. - in Market Watch



 
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 the market may rebound somewhat more here because we are very oversold

Marc Faber : Basically we have a lot of volatility. As you know over the last 12 months the S&P 500 Index rose from 1010 on July 1st, 2010 to a peak on May 2nd of 1370. Then we dropped to 1101 and now we are at 1178. So we have a lot of volatility. I think the market may rebound somewhat more here because we are very oversold and some technical indicators have turned positive including insider buying. But in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we will drift lower. Not to say that we will collapse because if the S&P 500 Index drops to 1000 or so, the Fed would certainly pump again money into the system. - in Fox Business News 




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 am confident that the price trend of gold is up

Marc Faber : I am not sure how high the price of gold or silver will increase but when I consider the further inevitable growth of the US and other governments’ debts, the creation of paper money in the world and especially at the low gold ownership rate in the world, I am confident that the price trend of gold is up. (But) near term I think the price could drop. - in The Jakarta Globe


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

Stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint may not be quite as cheap as all the strategists claim

Marc Faber : well basically we have a lot of volatility as you know the last 12 months the S&amp;P rose from 1010 on July 1st of 2010 to the peak of May 2nd of this year 1370 and then we dropped four days ago to 1101 and now we are at 1178 so we have a lot of volatility as in the market may rebound somewhat more because we are very oversold and some technical indicators have turned positive including also insider buying , but in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we'll drift lower it is not to say that we will collapse because if the S&amp;P dropped to around a thousand or so the FED will certainly pump again money into the system the concept of valuation is very difficult to make when you have zero interest rates , I can make a case that actually the price of Gold is still undervalued compared to say to mi 1990s when it was traded at 400 dollars , so it is very difficult to say what is valued in this environment is a Picasso a good value or is it over valued ? I don't know but stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint may not be quite as cheap as all the strategists claim I believe all the central banks in the whole world will print money and that eventually we will have symptoms of inflation they may not necessarily all be consumer based prices they can be manifesting themselves with insurance premiums going up with transportation going up energy price going up food prices going up educational costs going up these are inflation measures also and the weakening of the US Dollar that happened , now near term the US Dollar can rebound somewhat , possible but in the long run it is simply a doomed currency that's where the doom comes in  - in Fox Business News



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 would rather buy equities today

Marc Faber : If you think it through US debt downgrade should actually lead to weaker US Bond prices , yet yesterday and to day in Asia stocks are selling off and US government bonds rallied , but I always said , if you print money you are a serial bubble printer a bubble maker , you create one bubble after the other in different asset classes , and I think today to buy a thirty year US government bond is at a yield of 3.65 percent and a ten years bond at a yield of 2.31 percent , I would rather buy equities today but I think after a rebound we are going to go lower because the momentum is now very strong on the downside and I believe there is a loss of confidence in paper money and money is moving out of paper into Gold - in CNBC TV-18 



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

Zero interest rates is the problem

Marc Faber : The problem with the Federal Reserve policy of essentially zero interest rates is that they are essentially throwing money at the system, but they don’t control where the money will flow to. It can flow at some point into commodity-related stocks. It can flow into gold, oil, treasuries, but it doesn’t flow evenly into these assets. In my opinion, the Treasury, the long-dated Treasuries are essentially the short of the century thing here. - in 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.

I think we will test the July lows of last year, the S&P at 1,010

Marc Faber : “I think they did the right thing that they didn’t allow QE3. They can watch the reaction of assets, whether they will go lower. I think the market is more likely to move still lower. We are very oversold. We can have a rebound like we did today, maybe we’ll have a rebound next week or so, but in general I think we will test the July lows of last year, the S&amp;P at 1,010. After that, probably we’ll get probably a QE3 announcement.”  - in 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.

Marc Faber - FOX Business News 08/12/11

Marc Faber : well basically we have a lot of volatility as you know the last 12 months the S&P rose from 1010 on July 1st of 2010 to the peak of May 2nd of this year 1370 and then we dropped four days ago to 1101 and now we are at 1178 so we have a lot of volatility as in the market may rebound somewhat more because we are very oversold and some technical indicators have turned positive including also insider buying , but in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we'll drift lower it is not to say that we will collapse because if the S&P dropped to around a thousand or so the FED will certainly pump again money into the system the concept of valuation is very difficult to make when you have zero interest rates , I can make a case that actually the price of Gold is still undervalued compared to say to mi 1990s when it was traded at 400 dollars , so it is very difficult to say what is valued in this environment is a Picasso a good value or is it over valued ? I don't know but stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint may not be quite as cheap as all the strategists claim I believe all the central banks in the whole world will print money and that eventually we will have symptoms of inflation they may not necessarily all be consumer based prices they can be manifesting themselves with insurance premiums going up with transportation going up energy price going up food prices going up educational costs going up these are inflation measures also and the weakening of the US Dollar that happened , now near term the US Dollar can rebound somewhat , possible but in the long run it is simply a doomed currency that's where the doom comes in




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

QE1 and QE2 were useless

Marc Faber : What has QE1 and QE2 done for the labor markets? Nothing at all. It’s done nothing for the housing markets. It’s lifted stocks and it created wider wealth inequality in a sense that people who own assets have done very well, and people that are the lower-income recipients groups, they are hurt by rising energy prices  and food prices - in Bloomberg

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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.

The Treasury market is in a bubble

Marc Faber : I personally think the Treasury market , the long-dated, are a bubble and it will be one of the worst investments for the longer term if you buy a 10-year, a 30-year U.S. Treasury so I’m a bit puzzled that Treasuries are now yielding, are essentially near record lows. I would rather sell Treasuries. - in WallStCheatSheet




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 market has sold off in such a rapid way and with so much momentum that I am smelling as if something really wrong happens in the next two or three months

Marc Faber : “The only thing I have to say, basically the market has sold off in such a rapid way and with so much momentum that I am smelling as if something really wrong happens in the next two or three months, because the market is a discounting mechanism. Like March 2009 the market started to go up and people were baffled why it started to go up. Now it starts to go down, and maybe after three months people will wake up and scratch their heads and say now, we know why it started to go down, because maybe there is geo political problems, maybe the Middle East blows up, maybe the economy is horrible.” - in 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.

Gold not in a bubble

Marc Faber : “I don’t think it is a bubble, but I think the gold market has exploded to the upside recently and the correction is overdue. But as I have always maintained for the last 12 years, every responsible adult should gradually accumulate gold, because not owning any gold is the trouble with government. I don’t understand. People of Bloomberg, I hardly know anyone who owns any gold physically. All of the Bloomberg employees are intelligent people. They listen to the news every day. They make the news every day. Hardly anyone owns any 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 Treasury market is another example of a gigantic bubble

Marc Faber : “I’ve been in this business for 40 years and on many occasions, nothing made sense to me….I think the Treasury market is another example of a gigantic bubble. The problem with the Federal Reserve policy of essentially zero interest rates is that they are essentially throwing money at the system, but they don’t control where the money will flow to. It can flow at some point into commodity-related stocks. It can flow into gold, oil, treasuries, but it doesn’t flow evenly into these assets. In my opinion, the Treasury, the long-dated Treasuries are essentially the short of the century thing here.”  - in 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.

I hardly know anyone who owns any gold physically

Marc Faber : “I don’t think it is a bubble, but I think the gold market has exploded to the upside recently and the correction is overdue. But as I have always maintained for the last 12 years, every responsible adult should gradually accumulate gold, because not owning any gold is the trouble with government. I don’t understand. People of Bloomberg, I hardly know anyone who owns any gold physically. All of the Bloomberg employees are intelligent people. They listen to the news every day. They make the news every day. Hardly anyone owns any gold.” - in 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.

What can you do with Gold ?

Marc Faber : “I disagree [that you can't do anything with gold.] You give your girlfriend copper rings and I give them gold rings and I keep them longer.” - in 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.

the Fed is underestimating the severity of the coming economic downturn

I think the Fed is underestimating the severity of the coming economic downturn. Essentially they spent their bullets. It is very difficult to follow through with QE3 right here, because you have gold prices going ballistic, and you have the dollar being very weak, and so there are unintended consequences with implementing QE3 right here. - in 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.

Everybody in the world has become a Keynesian

Everybody in the world has become a Keynesian. Everybody thinks the government should do this, the Fed should do that, the Treasury should do that. I think sometimes the best is to do nothing. - in 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.

The Market Has Sold Off In Such A Rapid Way With So Much Momentum That I Am Smelling As If Something Really Wrong Will Happen In The Next 2 or 3 Months

The market has sold off in such a rapid way with so much momentum that I am smelling as if something really wrong will happen in the next two or three months. Because the market is a discounting mechanism...in March 2009, the market went up and people were baffled by that. And now it goes down, and maybe in three months, people will wake up scratch their head and understand why... - in 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.

The best thing The FED could do for the market would be to collectively resign

Marc Faber : ....actually the best thing they could (The FED ) do for the market would be to collectively resign , this is my view ...everybody in the world have become a Keynesian everybody thinks the government should do this the government should do that the FED should do this the Treasury should do that , I think sometimes the FED should do nothing and I welcome the decision today that they are not doing anything worse of what they have already done ... - in Bloomberg TV 09 Aug 2011 


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

Bloomberg Video Interview 08 Aug 2011

Marc Faber Bloomberg Video Interview 08 Aug 2011

Marc Faber, publisher of the Gloom, Boom &; Doom interviewed by Bloomberg Television on August 08th 2011 about the US Downgrade by the S&P Faber speaks from Chiang Mai, Thailand, :

Marc Faber : ...S&P basically downgraded a junk bond because it is no longer a triple A , a government bond has a triple A rating when it is willing to pay the interests in a stable currency we are not dealing in this particular case the US Dollar with a stable currency The rating agencies are looking backward and not forward , The US fiscal position is a disaster if you include non funded liabilities and some kind of default will occur , now there are two ways a government can default , it can default by not paying the interests and restructuring its debt as happened in Argentina and in other countries repeatedly , or it can repay the interests and the debt in a depreciated currency , all currencies all paper money are losing value in terms of their purchasing power and of course the Us Dolar is losing more of its purchasing power than other currencies " I do not think the market will make new highs this year , I think the market is incredibly over sold , it is quite likely that we may bottom out today or tomorrow and have a rally .....I can smell QE3 , QE4 and many more 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 will be using the rebound as a selling opportunity

Marc Faber : the markets has experienced everywhere huge technical damage and near term as of today all markets are extremely extremely oversold , so rebound is going to happen today or tomorrow I mean on Monday but the damage technically is so great that the rebound no matter if QE3 happens right here it's unlikely to left the market above May 2nd High on the S&P at 1370 my near term target for October November will be something like 1150 on the S&P , then we will have to see if QE3 or QE4 will come and whether the market will stabilize , generally I will be using the rebound as a selling opportunity- in 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.

Marc Faber CNBC Video Interview 05 Aug 2011

Marc Faber : the markets has experienced everywhere huge technical damage and near term as of today all markets are extremely extremely oversold , so rebound is going to happen today or tomorrow I mean on Monday but the damage technically is so great that the rebound no matter if QE3 happens right here it's unlikely to left the market above May 2nd High on the S&P at 1370 my near term target for October November will be something like 1150 on the S&P , then we will have to see if QE3 or QE4 will come and whether the market will stabilize , generally I will be using the rebound as a selling opportunity



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

Markets extremely oversold - Bloomberg Video Interview

Marc Faber Interview on Global Financial Markets : Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global financial markets. Faber also discusses Federal Reserve monetary policy. He speaks from Zurich Switzerland about the DOW plunging 500 points


Marc Faber : ...I am telling you the world is mad the investors they do not understand that markets are volatile and that they have to be prepared to see stocks dropping 30 percent annually and rally 20 percent and then dropp 30 percent that should be the pattern and whoever can't live with that he shouldn't be buying anything 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.

I live in Thailand and I do not have any insurances

Marc Faber : whether a country pays healthcare or not does not really matter because the Chinese citizens themselves put money aside that's why savings rate is high for their retirement for their healthcare for for their social security , the problem in the western world is that people set there and say Papa government will take care of me and everything , they have have abandoned personal responsibility for their actions , everything is insured , I live in Thailand I do not have any insurances If something goes wrong I have to pay myself and that's why I put reserves on the side and I pay low taxes , and so it is a different system you cannot just condemn China because they do not have healthcare that is run by the government lucky they do not have that , that's what should happen in America they should cut government expenditure precisely fifty percent and fire half the government including the president - in 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.