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Saturday, June 28, 2014

I believe Stocks & Bonds will go down at the same time

"In case things turn out bad again, the central bankers have one thing left: money. When they start throwing out money, it will lead to price increases. Nobody can deny that anywhere in the world energy prices are substantially higher than they were ten years ago. Nobody can deny that food prices are up. Nobody in the US can deny that insurance premiums are up. So, to throw money at the system, at some point will lead to some more visible (!) pressure on consumer prices. Stocks has basically done nothing since the beginning of the year. But long term bonds are up 12% this year. Now, during the next downturn, I believe stocks and bonds will go down at the same time."




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

Wednesday, June 25, 2014

Central Banks worldwide biased to Inflationary Monetary Policies



I think to be fair the Federal Reserve after its foundation in 1913 has essentially always pursued relatively expansionary monetary policies with one exception that stands out and that was the period Paul Volcker 1979-1980 when he pushed the discount rate to over 20%. A very courageous move I may add; but in general if you look at the price level in the U.S. in 1900 compared to 1800 and you look at real per capita increases between 1800 and 1900, then I have to say that the economic expansion under a gold standard essentially in the 19th century was stronger than in the 20th century when the Fed was in existence.

And what happened is in the 20th century the price level as you well know and as everybody knows has gone up dramatically in terms of how much it costs you to fill the tank of your car.

How much a movie ticket costs, how much a pound of bread costs, and so forth and so on. And so really the policies of the Federal Reserve have always been inflationary.

And I would say every central bank that essentially has the control of over the quantity of money will in the long-run ensue inflationary policies. Maybe temporary, occasionally, they tighten the monetary policies, but actually in the U.S. we didn't have tight monetary policies now for 10-20 years.






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

Monday, June 23, 2014

Marc Faber to continue investing in Vietnam despite tensions

Vietnamese work hard and they have ambitions. Investors like countries with highly ambitious people.

Vietnam has an attractive investment environment. Vietnam’s economy has been affected by the tensions with China in the East Sea. But I believe Vietnamese and Chinese diplomats will find a way to ease the tensions. I will continue investing in Vietnam.






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

Tuesday, June 17, 2014

Market correction still awaits



Since October 2011, we have not had a significant correction in the market. The largest corrections were corrections of less than 11%.
Now if the data deteriorates and if the stock market would decline by 20% over a given period of time, I think they would actually increase the asset purchases and actually give up the tapering.




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

Monday, June 16, 2014

US Dollar vs. Euro


If you look at the energy situation in the US, it is improving. Some people are talking about the US becoming energy self-sufficient. It is not necessarily my view, but although you have these positive factors that should support the dollar, the dollar has continued to be weak against the euro.
I admit that it has been strong against some currencies, but I am surprised that the dollar is not stronger.





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

Friday, June 13, 2014

Investing : Stating There is No Inflation is an Error


"Inflation is an increase in the quantity of money and credit. The symptoms occur in a variety of forms. You can print money in the US, but it could happen that it does not boost economic activity in the US but only in China or in Vietnam or Indian and so forth. It can boost wages in India, it can boost real estate prices in London, and so forth, because we have a global economy. Stating there is no inflation is an error."




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

Thursday, June 12, 2014

Stock Market Put protection



In a diversified portfolio I think that Treasury Notes and Treasury Bonds would rally, if stocks fell sharp. This is a way of having a put in 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.

Wednesday, June 11, 2014

No Asset Class is Terribly Attractive Right Now


"I don’t see any asset that is terribly attractive. The most underappreciated asset is cash. Nobody likes cash. In the next 10 years, you will earn precisely 0 percent. In fact, you will lose money because Ms. Yellen is a money printer like all the others, and she will make sure that the dollar will depreciate in real terms. But for the next 6 months, cash will be most attractive. I don’t want to be in cash, but in the coming 6 months a lot of opportunities will come along."





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

Monday, June 9, 2014

US Stocks Could Easily Drop 10, 20 Percent


Marc Faber, publisher of the Gloom, Boom & Doom report, remains bearish on U.S. stocks, seeing valuations as stretched.
"I don't regard this as a very healthy market," he told CNBC. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent."
The Standard & Poor's 500 index rose 4.46 points, or 0.2 percent, to close Thursday at 1,892.49, within 1 percent of its record high. The index is up 2.4 percent for the year. The index' trailing price-earnings ratio registered 18 as of Friday, according to Birinyi Associates. That's above its historical average.
Faber isn't too enthusiastic when it comes to Treasurys either, saying there is "nothing attractive" about them.
The 10-year Treasury yield stood at 2.55 percent early Friday, after hitting a 6 ½-month low of 2.47 percent last week.
While acknowledging that U.S. stocks are "relatively expensive," he noted that Europe and emerging markets offered better value.
"If I were to buy equities I would rather go into emerging economies, but I don't think there is a hurry."
"I think we are bracing for a general asset deflation," Faber stated. "I think the system is still very vulnerable. I'm not predicting a complete collapse, because money printing can go on almost endlessly. But it will have unintended consequences." - in Money 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.

Saturday, June 7, 2014

Emerging Economies Stock Markets looking okay

I believe that emerging markets are reasonably priced – certainly compared to US equities – but they have not reached completely distressed levels where I would make a major commitment.

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

Friday, June 6, 2014

I like the concept of Bitcoin


Western nations don't realize "you can't treat other nations the way you treated them in the 19th Centrury... China is so large and so important to its neighbors that the US will have to back off"
"People think they know what the future holds... and what Central banks are up to.. they don't... I will never sell my gold and I buy more every month... I would not be short gold"
"Every asset in the world is over-inflated right now..."
"I like the concept of Bitcoin"



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

Tuesday, June 3, 2014

Marc Faber Market Commentary June 2014 Gloom Boom Doom



I continue to believe that the future returns from asset markets will likely disappoint most investors. It should be clear that the higher bonds and stocks move up the lower the future returns will be. 

As mentioned, I hold Ten-year Treasuries, but with a yield of less than 2.5%, the best I am hoping for is to lose less money than in US stocks. 

I believe that emerging markets are reasonably priced – certainly compared to US equities – but they have not reached completely distressed levels where I would make a major commitment.


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

Sunday, June 1, 2014

This is what could cause The Stock Markets to Drop


My view is that if the bears on bonds are right and say the 10 year treasury note indeed goes to 4 percent, I think the stock market will really tumble.



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