“The recession will stretch for at least the next six months,” Marc Faber, managing director of Marc Faber Ltd. in Hong Kong and publisher of the “Gloom, Boom and Doom Report,” told Bloomberg TV Dec. 26.
“2009 will be a write-off in terms of economic activity.”
In the Marc Faber Blog you can track all of Faber`s investment ideas and media appearences, including his latest interviews to CNBC, Bloomberg and other financial media.
Faber thinks the best trade for 2009 is to short US treasuries. That can be done by shorting US 30 Year Government Bond Futures in the CBOT or buying the ProShares UltraShort Lehman 20+ Yr(TBT) ETF.
31 December, 2008
30 December, 2008
Marc Faber sees Trading Opportunity
Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, feels 2009 will be a better year. "In other words, the S&P 500 will recover to around 1,100-1,200. But famous strategists a year ago were predicting the 2008 end S&P 500 level of between 1,525 and 1,750. That depends very much on the money printing activity of Fed Chairman Ben Bernanke and fiscal measures taken by the Treasury and other governments around the world."
Marc Faber is seeing a trading opportunity in the stock markets. Here on the Marc Faber Blog you can track all his investment activity and ideas. Today Marc is skying in St. Mauritz.
Marc Faber is seeing a trading opportunity in the stock markets. Here on the Marc Faber Blog you can track all his investment activity and ideas. Today Marc is skying in St. Mauritz.
29 December, 2008
Faber: Short Treasurys, Buy Hard Assets
"You want to be in gold, silver, platinum, and also oil," Marc Faber told CNBC.
"If you believe in a recovery of asset prices as a result of money printing, you should be in hard assets, particularly precious metals."
He said he sees the money that has been locked up in Treasurys starting to rush out during the coming year. "I think the big trade in 2009 will be to go short Treasurys massively -- I really mean massively"
In the stock market Faber picks are: "If you want to own shares, I would own some resource companies, companies like Freeport McMoran" he said. "I would also own some Asian shares."
In the Marc Faber Blog you can find all Marc`s investment ideas and comments on the economies and financial markets.
"If you believe in a recovery of asset prices as a result of money printing, you should be in hard assets, particularly precious metals."
He said he sees the money that has been locked up in Treasurys starting to rush out during the coming year. "I think the big trade in 2009 will be to go short Treasurys massively -- I really mean massively"
In the stock market Faber picks are: "If you want to own shares, I would own some resource companies, companies like Freeport McMoran" he said. "I would also own some Asian shares."
In the Marc Faber Blog you can find all Marc`s investment ideas and comments on the economies and financial markets.
Faber on Gold, Oil and Miners
Gold is still a good investment after rising about 20 percent since mid-November, and "oil is becoming attractive” after prices plunged 71 percent from a record $147.27 a barrel in July, Faber said.
Investors should also consider buying shares of miners and oil companies including Newmont Mining Corp., Cia. Vale do Rio Doce, Rio Tinto Group and BHP Billiton Ltd if prices have a “correction,” or decline at least 10 percent.
In the Marc Faber Blog you can follow the investment ideas of a legendary investor with a massive following. Faber is mostly a contarian investor with a very fundamental approach to the markets.
Investors should also consider buying shares of miners and oil companies including Newmont Mining Corp., Cia. Vale do Rio Doce, Rio Tinto Group and BHP Billiton Ltd if prices have a “correction,” or decline at least 10 percent.
In the Marc Faber Blog you can follow the investment ideas of a legendary investor with a massive following. Faber is mostly a contarian investor with a very fundamental approach to the markets.
Marc Faber on the Stock Market
Global equities may extend their month-long advance after the Federal Reserve cut interest rates to near zero percent, investor Marc Faber said.
“Markets may rebound somewhat more,” Faber, founder of Hong Kong-based Marc Faber Ltd. and publisher of the Gloom, Boom & Doom Report, said in a Bloomberg Television interview from Zurich. “I would look at it as a trading opportunity.”
“Markets may rebound somewhat more,” Faber, founder of Hong Kong-based Marc Faber Ltd. and publisher of the Gloom, Boom & Doom Report, said in a Bloomberg Television interview from Zurich. “I would look at it as a trading opportunity.”
Faber On Inflation, the Economy and Bonds
Investment guru Marc Faber says economies around the world may stay in recession for five to 10 years. “We’re faced with a global recession that will last for a very long time,” he told Bloomberg TV.
“Recovery won’t come until maybe in five to 10 years time. I think 2009 will be catastrophic.”
The massive easing program implemented by the Federal Reserve will end up hurting the economy, Faber maintains. “It’s hard to believe that after blowing up so many bubbles over the past couple years, the Fed is managing to blow yet another bubble,” he says.
“Thirty-year Treasury bonds are yielding about 2.5 percent. You would have to assume that over the next 30 years there will be no inflation problem” to make those yields attractive. Given the expansionary fiscal and monetary policy of the United States, “there will be a time when inflation accelerates along with a weak dollar,” Faber says.
“When that happens, central banks will have to increases interest rates, which will be difficult to implement.”
“Recovery won’t come until maybe in five to 10 years time. I think 2009 will be catastrophic.”
The massive easing program implemented by the Federal Reserve will end up hurting the economy, Faber maintains. “It’s hard to believe that after blowing up so many bubbles over the past couple years, the Fed is managing to blow yet another bubble,” he says.
“Thirty-year Treasury bonds are yielding about 2.5 percent. You would have to assume that over the next 30 years there will be no inflation problem” to make those yields attractive. Given the expansionary fiscal and monetary policy of the United States, “there will be a time when inflation accelerates along with a weak dollar,” Faber says.
“When that happens, central banks will have to increases interest rates, which will be difficult to implement.”
Faber on US Bonds
Marc Faber`s most famous quote is "buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years".
You can take this trade shorting ZB Futures or buying the TBT ETF.
You can take this trade shorting ZB Futures or buying the TBT ETF.
Marc Faber Biography
Faber was born in Zurich and schooled in Geneva, Switzerland. He studied Economics at the University of Zurich and obtained a Ph.D. in Economics magna cum laude. Faber resides in Thailand and is best known for the Gloom Boom Doom report.
During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Thailand, though he keeps a small office in Hong Kong.
Faber has gained a reputation as a contrarian investor. He has become a frequent speaker on various TV programs and forums in recent years.
During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Thailand, though he keeps a small office in Hong Kong.
Faber has gained a reputation as a contrarian investor. He has become a frequent speaker on various TV programs and forums in recent years.
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