The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
29 May, 2009
28 May, 2009
Opportunity in Natural Gas?
Peak oil is a reality. It does not mean that prices will go up in the immediate future. There are other sources of energy like nuclear and Natural Gas. Natural Gas is the most undervalued commodity right now.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
27 May, 2009
Hyperinflation in America
I am 100% sure that the US will go into hyperinflation. The problem with government debt growing so much is that when the time will come and the FED should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Japan Will Outperform
I think Japan will outperform world stock markets over the next 5 to 10 years. Valuations are very low compared to yields in Japan.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Money Printing Can Create a Mini Boom
The huge inflow of liquidity to the system combined with huge fiscal deficits, can lift economic activity and stock market for some time. If I throw money to the system I can create a mini boom but not a lasting one.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
26 May, 2009
Latest CNBC Video Interview
"In general paper money, not only the US Dollar, will be worthless"
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Stocks, US Dollar and Commodities
Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, said he saw a correction of 25-30% in equities and that he expected the Sensex to retest 10000-12000 levels. “Markets will correct as it becomes evident that the economic recovery is not as rapid as expected.”
The US Federal Reserve will throw more money into the system as the economy deteriorates and so it would not be very favourable to be long on the US dollar, Faber added.
On commodities, Faber said that prices would continue to go up in the next couple of years, regardless of the global scenario as the supply of commodities could not be increased.
“Commodity prices will find support due to excessive quantitative easing by the US and the global commodity prices will rise if economies improve.”
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
The US Federal Reserve will throw more money into the system as the economy deteriorates and so it would not be very favourable to be long on the US dollar, Faber added.
On commodities, Faber said that prices would continue to go up in the next couple of years, regardless of the global scenario as the supply of commodities could not be increased.
“Commodity prices will find support due to excessive quantitative easing by the US and the global commodity prices will rise if economies improve.”
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
25 May, 2009
A Correction in US Stocks Will Unfold
A number of stocks above the 50-day moving average reached 90% the other day, which signals an overbought position in US. I expect a correction to unfold. If the correction is a resumption of the bear market where we will make new lows or is still a correction — that still remains to be seen.
22 May, 2009
Investing in Agriculture
"Investing in agriculture today will be like investing in the oil sector in 2001-2002." Gloom Boom & Doom Report, May 2009
21 May, 2009
REIT`s Are Attractive
REIT globally are in recovery mode. In Singapore and in Hong Kong we have lots of REIT that yield around 10 to 12%. Maybe they will cut the dividend for a while but compared to say, US Government Bonds they are very attractive. Even Indian and Russian Real Estate Investment Trusts look attractive to me.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
20 May, 2009
Global Economy Won`t Recover Soon
I think the final low in markets will occur when the system is cleaned out. Unless that happens, the way communism collapsed, capitalism will collapse. The best way to deal with any economic problem is to let the market work it through.
I don't think that the global economy will recover anytime soon. And we have to define what a recovery is. If economic output drops far enough, a mere revival of inventories can push growth up a bit, creating a mild rebound.
I take 2006 and early 2007 as the peak of prosperity in this long cycle, and I don't think we're going back there anytime soon.
I don't think that the global economy will recover anytime soon. And we have to define what a recovery is. If economic output drops far enough, a mere revival of inventories can push growth up a bit, creating a mild rebound.
I take 2006 and early 2007 as the peak of prosperity in this long cycle, and I don't think we're going back there anytime soon.
19 May, 2009
Latest CNBC Interview, May 2009
"In Asia we have lots of assets that are reasonably priced. We have sectors that are attractive like banks in Singapore, Thailand and Hong Kong."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
18 May, 2009
What Now For Stocks And Bonds?
"I have explained repeatedly in the past that if a government is really determined to try and postpone an inevitable collapse by 'printing money' in order to lift or support asset prices, it can be done
This is not to say that the global economy is about to embark on a strong and sustainable growth phase. It also doesn't mean that a new bull market in global equities a la 1982-2000 has begun. But I think that, at least in nominal terms (inflation-adjusted), the global printing presses being run by the world's central banks and fiscal deficits have begun to impact asset prices positively.
Many investors did not take advantage of the recent rally because they thought it was a bear-market rally, so they stayed on the sidelined, hoarding cash. But stocks are not likely to collapse, as more players take courage to dip into the market.
Put yourself in the shoes of a fund manager who, in the last 18 months, has lost 50 percent of his clients' money and missed the recent rally.
What is he likely to do? I would think he would be inclined to purchase equities as they correct the sharp advance since early March, especially as the economic news in the near term becomes less negative. But very high volatility and price fluctuations that don't appear to make any sense will be the new dominant characteristic of the market.
The lows reached by resource and mining stocks, as well as Asian equities and most emerging markets, are likely to hold for now but the US long-term government bond market has the highest probability of having reached a high."
This is not to say that the global economy is about to embark on a strong and sustainable growth phase. It also doesn't mean that a new bull market in global equities a la 1982-2000 has begun. But I think that, at least in nominal terms (inflation-adjusted), the global printing presses being run by the world's central banks and fiscal deficits have begun to impact asset prices positively.
Many investors did not take advantage of the recent rally because they thought it was a bear-market rally, so they stayed on the sidelined, hoarding cash. But stocks are not likely to collapse, as more players take courage to dip into the market.
Put yourself in the shoes of a fund manager who, in the last 18 months, has lost 50 percent of his clients' money and missed the recent rally.
What is he likely to do? I would think he would be inclined to purchase equities as they correct the sharp advance since early March, especially as the economic news in the near term becomes less negative. But very high volatility and price fluctuations that don't appear to make any sense will be the new dominant characteristic of the market.
The lows reached by resource and mining stocks, as well as Asian equities and most emerging markets, are likely to hold for now but the US long-term government bond market has the highest probability of having reached a high."
17 May, 2009
The S&P Can Correct to 780
The S&P can go down and test 780. Its important that the S&P does not go below the November 20th low at 741. As long as that can hold we can have another push up into the summer.
Commodities Will Outperform Stocks
What happened over the last 6 months is this: the market went down and bottomed out for the time at 741 in the S&P on November 21th 2008. Then we rallied 27% into January 6th and then collapsed into March 6th when the S&P dropped to 666. Since then we went from 666 to 929, in other words, up 39%.
The emerging markets interestingly enough bottomed out between October and November last year. Oil and Copper bottomed out in December 2008 and since then have been going up very substancially. Copper up more than 70% and Oil up 90%. A lot of emerging market stocks have more than doubled, even in the US you have lots of stocks that doubled between November and May , like Freeport McMoran, Newmont Mining and more recently Citigroup. There have been very pronnounced rebounds.
I think this as little to do with the economy. Investors must realise the worst the economy is and the longer it does not recover , the larger the fiscal deficits will be and more money will be printed. You can have a situation where actually where an economic recovery would not be that great for stocks because interest rates will go up and inflationary pressures will come back. In that environment commodities will outperform stocks.
The emerging markets interestingly enough bottomed out between October and November last year. Oil and Copper bottomed out in December 2008 and since then have been going up very substancially. Copper up more than 70% and Oil up 90%. A lot of emerging market stocks have more than doubled, even in the US you have lots of stocks that doubled between November and May , like Freeport McMoran, Newmont Mining and more recently Citigroup. There have been very pronnounced rebounds.
I think this as little to do with the economy. Investors must realise the worst the economy is and the longer it does not recover , the larger the fiscal deficits will be and more money will be printed. You can have a situation where actually where an economic recovery would not be that great for stocks because interest rates will go up and inflationary pressures will come back. In that environment commodities will outperform stocks.
15 May, 2009
Governments Are Monetizing The Debt. They Are Printing Money
We had this huge bull market in asset prices from 2002 to 2007, during which everything went up. Commodities, equities, real estate worldwide and even bond prices and art.
Then came the big awakening, credit growth began to slow down and in 2008 everything collapsed except for bonds and the US Dollar, because global liquidity was shrinking and that was dollar supportive. And then we had the beginning of the recession at the end of 2007 and the global economy fell of a cliff between September of 2008 and March of 2009.
I think the rate of decelaration is now diminishing, we still have bad news, the global economy will not recover in a long time but it is not going to deteriorate much more. And we have a huge effort by governments worldwide to create fiscal deficits, in other words to print money. For that reason even if the world economy does not recover you will have a strong recovery in asset prices.
Then came the big awakening, credit growth began to slow down and in 2008 everything collapsed except for bonds and the US Dollar, because global liquidity was shrinking and that was dollar supportive. And then we had the beginning of the recession at the end of 2007 and the global economy fell of a cliff between September of 2008 and March of 2009.
I think the rate of decelaration is now diminishing, we still have bad news, the global economy will not recover in a long time but it is not going to deteriorate much more. And we have a huge effort by governments worldwide to create fiscal deficits, in other words to print money. For that reason even if the world economy does not recover you will have a strong recovery in asset prices.
14 May, 2009
Latest Bloomberg Interview
VIDEO 1
VIDEO 2
VIDEO 3
Latest Marc Faber interview to Bloomberg TV, May 14th 2009. A fantastic 27 minute interview with Dr. Faber where he talks about the stock market rally, emerging markets, the dollar and commodities. Find out what Marc is buying and what he thinks of the global economy.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
VIDEO 2
VIDEO 3
Latest Marc Faber interview to Bloomberg TV, May 14th 2009. A fantastic 27 minute interview with Dr. Faber where he talks about the stock market rally, emerging markets, the dollar and commodities. Find out what Marc is buying and what he thinks of the global economy.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
13 May, 2009
Buy Agriculture Commodities
Going against the grain may be costly. Investing in agriculture today will be like investing in oil in 2001 to 2002 when oil prices halved to US$17 per barrel says Marc Faber editor of The Gloom, Boom & Doom Report. Agricultural commodities fell by half from June 2008 highs, but fundamentals remain strong says Faber.
Faber points to a weak build in agricultural stocks (supplies) during the bumper harvest year of 2008. Low stocks, declining productivity, and increased demand persist from a long term perspective says Faber and will drive prices higher. Population growth is rising until 2030 and will have produced an additional billion mouths to feed between 2000 and 2012 alone.
Faber is well known for highlighting long term trends in asset prices through a careful read of history. He points to the Green Revolution between 1976 to 1986 as the era when growth in food production transitioned from increased land usage to higher yielding agricultural methods yet those benefits have run their course. Productivity fell by almost half between 1990 and 2007 and will continue that trend over the next decade.
Faber recommends only one-third allocation to commodity futures products due to the negative carry costs in those markets and also warns against farmland companies due to poor yields. One third of investor capital should go to listed agricultural companies and the other third to private companies. The long term opportunity is now.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Faber points to a weak build in agricultural stocks (supplies) during the bumper harvest year of 2008. Low stocks, declining productivity, and increased demand persist from a long term perspective says Faber and will drive prices higher. Population growth is rising until 2030 and will have produced an additional billion mouths to feed between 2000 and 2012 alone.
Faber is well known for highlighting long term trends in asset prices through a careful read of history. He points to the Green Revolution between 1976 to 1986 as the era when growth in food production transitioned from increased land usage to higher yielding agricultural methods yet those benefits have run their course. Productivity fell by almost half between 1990 and 2007 and will continue that trend over the next decade.
Faber recommends only one-third allocation to commodity futures products due to the negative carry costs in those markets and also warns against farmland companies due to poor yields. One third of investor capital should go to listed agricultural companies and the other third to private companies. The long term opportunity is now.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
12 May, 2009
18 Minute Interview: Stocks, Inflation and Commodities
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
07 May, 2009
Perhaps the S&P has Bottomed Out
Even Marc “Dr Doom” Faber, in his latest monthly newsletter to clients, concedes that perhaps, just perhaps, the S&P500 has bottomed out and things may improve from here. Not only that — after boosting gold consistently for months, he warns that precious metal prices may correct further on the downside in coming months.
in FT Alphaville
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
in FT Alphaville
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
06 May, 2009
Commodities and the Kondratiev Wave
``I agree that commodity prices move in long cycles,'' said Faber, who manages $300 million at Marc Faber Ltd. ``The up wave of the Kondratiev cycle is likely to last for at least another 15 to 20 years.''
Faber devoted a 35-page chapter of his 2001 book ``Tomorrow's Gold'' to Kondratiev and other long-wave theorists, writing that once the cycle turned higher, ``it will change the entire rules of investing, because in a rising wave, commodity prices will rise, inflation will accelerate and interest rates will increase.''
The Reuters/Jefferies CRB index of 19 commodities has surged 139 percent since October 2001; copper has jumped five-fold, while oil prices have more than tripled. The U.S. Federal Reserve has raised its benchmark interest rate to 5.25 percent, from a low of 1 percent in 2003.
Faber owns mining stocks, which he declined to name, as well as gold, rare metals and agricultural land. He's underweight bonds, which he said don't perform well in a rising Kondratiev wave.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Faber devoted a 35-page chapter of his 2001 book ``Tomorrow's Gold'' to Kondratiev and other long-wave theorists, writing that once the cycle turned higher, ``it will change the entire rules of investing, because in a rising wave, commodity prices will rise, inflation will accelerate and interest rates will increase.''
The Reuters/Jefferies CRB index of 19 commodities has surged 139 percent since October 2001; copper has jumped five-fold, while oil prices have more than tripled. The U.S. Federal Reserve has raised its benchmark interest rate to 5.25 percent, from a low of 1 percent in 2003.
Faber owns mining stocks, which he declined to name, as well as gold, rare metals and agricultural land. He's underweight bonds, which he said don't perform well in a rising Kondratiev wave.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
04 May, 2009
Gloom, Boom and Doom Snapshot, May 2009
Copper is generally a leading indicator of economic growth because of its use in new construction (housing and commercial property).
Dr. Faber might be in agreement with Dr. Copper (as copper is sometimes called for its ability to 'diagnose' the economic conditions). Dr. Marc Faber's latest letter landed in the mailbox yesterday. There were some real gems in this month's Gloom, Boom, and Doom Report. One was this quote from Charles Kettering, "Success is getting what you want, happiness is wanting what you get."
Got it?
Dr. Faber also has quite a bit to say about whether the large rallies in global stock markets since March (and earlier in some cases) constitute a recovery in the economy or just a "bear market rally." He says that, "At least in nominal terms, the global printing presses being run by the world's central banks and fiscal deficits have begun to impact asset prices positively."
This is a concession that the big quantitative easing efforts of the Fed have found their way into bond prices and certain other sectors. Also, by trashing cash the Fed has made stocks look relatively more attractive. Dr. Faber also thinks that, "In the case of resource and mining stocks, as well as Asian equities (and, for that matter, most emerging and other stock markets around the globe), the lows that were reached between October and March of this year are likely to hold-that is, for now."
And what about Australia specifically? He did not single the country out. But he did say that, "The markets that have the highest probability of having made major longer-term lows are resource-related equities, emerging markets, and Japan."
"Conversely," he writes, "the asset market that has the highest probability of having a made a secular high (such as Japan in 1989, or the NASDAQ in March 2000) is the U.S. long-term government bond market. Despite a still-weakening economy and massive quantitative easing, long-term bond yields appear to be on the verge of breaking out on the upside."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Dr. Faber might be in agreement with Dr. Copper (as copper is sometimes called for its ability to 'diagnose' the economic conditions). Dr. Marc Faber's latest letter landed in the mailbox yesterday. There were some real gems in this month's Gloom, Boom, and Doom Report. One was this quote from Charles Kettering, "Success is getting what you want, happiness is wanting what you get."
Got it?
Dr. Faber also has quite a bit to say about whether the large rallies in global stock markets since March (and earlier in some cases) constitute a recovery in the economy or just a "bear market rally." He says that, "At least in nominal terms, the global printing presses being run by the world's central banks and fiscal deficits have begun to impact asset prices positively."
This is a concession that the big quantitative easing efforts of the Fed have found their way into bond prices and certain other sectors. Also, by trashing cash the Fed has made stocks look relatively more attractive. Dr. Faber also thinks that, "In the case of resource and mining stocks, as well as Asian equities (and, for that matter, most emerging and other stock markets around the globe), the lows that were reached between October and March of this year are likely to hold-that is, for now."
And what about Australia specifically? He did not single the country out. But he did say that, "The markets that have the highest probability of having made major longer-term lows are resource-related equities, emerging markets, and Japan."
"Conversely," he writes, "the asset market that has the highest probability of having a made a secular high (such as Japan in 1989, or the NASDAQ in March 2000) is the U.S. long-term government bond market. Despite a still-weakening economy and massive quantitative easing, long-term bond yields appear to be on the verge of breaking out on the upside."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
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