Marc Faber on CNBC, December 30 (Use Internet Explorer to watch this video)
"I think 2009 was an extraordinary year for capital gains because both commodities and stocks became extremely oversold. I think 2010 is a year when capital preservation will be more important because I expect a lot of volatility up and down."
"My feeling is that the US market will outperform emerging economies in the first six months of 2010."
"In five to 10 years, stock prices are likely to be higher than they are now, but the dollar will be lower"
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.
31 December, 2009
Bloomberg Video Interview: December 28
Latest Bloomberg video interview, December 28.
“Sentiment on the U.S. dollar was really extremely negative over the last three months. The dollar will appreciate against the euro by another 5 to 10 percent, and later on we’ll have to see, but that would be a near-term target.”
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.
“Sentiment on the U.S. dollar was really extremely negative over the last three months. The dollar will appreciate against the euro by another 5 to 10 percent, and later on we’ll have to see, but that would be a near-term target.”
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.
30 December, 2009
2010: I Expect a Lot Of Volatility Up And Down
"I think 2009 was an extraordinary year for capital gains because both commodities and stocks became extremely oversold. I think 2010 is a year when capital preservation will be more important because I expect a lot of volatility up and down.
My feeling is that the US market will outperform emerging economies in the first six months of 2010. It remains to be seen whether that will be in a context in which markets continue to move up or because emerging markets will give up their gains faster than the US.
In the short term, US Treasurys are oversold because many investors have negative sentiments regarding the US bond market, while stocks are overbought. I believe that we could have a rebound in Treasurys for, say, one to three months. But longer term, Treasurys prices are likely to come down." in CNBC video interview, January 30
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.
My feeling is that the US market will outperform emerging economies in the first six months of 2010. It remains to be seen whether that will be in a context in which markets continue to move up or because emerging markets will give up their gains faster than the US.
In the short term, US Treasurys are oversold because many investors have negative sentiments regarding the US bond market, while stocks are overbought. I believe that we could have a rebound in Treasurys for, say, one to three months. But longer term, Treasurys prices are likely to come down." in CNBC video interview, January 30
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 December, 2009
It Will Be More Difficult To Make Money In 2010
“The worst investment, in the long run, will be U.S. Treasuries, and cash which has no return at present. This is the one reason that I am moderately positive about equities is that this money goes into leverage plays.
It will be more difficult to make money in 2010 as the markets become more volatile. I think 2010 will be more of a year when not to lose any money will be very important. I am a little more cautious in general."
in Bloomberg.com
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.
It will be more difficult to make money in 2010 as the markets become more volatile. I think 2010 will be more of a year when not to lose any money will be very important. I am a little more cautious in general."
in Bloomberg.com
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.
28 December, 2009
Bloomberg Video Interview: December 28
Latest Bloomberg Video Interview: LINK
Topics: stock market performance in 2010, interest rates, us economy, cash, Government Bonds, us dollar;
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.
Topics: stock market performance in 2010, interest rates, us economy, cash, Government Bonds, us dollar;
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 Worst Investment In The Long Run Will Be U.S. Treasuries
"The S&P 500 Index could go up 200 percent if (Ben Bernanke) prints enough. The worst investment, in the long run, will be U.S. Treasuries, and cash which has no return at present. This is the one reason that I am moderately positive about equities is that this money goes into leverage plays.”
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.
The Dollar May Appreciate 5 to 10 Percent Against The Euro In The Near Term
U.S. equities and the dollar may keep rallying together, reversing a relationship that existed from March to November, Faber said in an interview on Bloomberg Television:
“Sentiment on the U.S. dollar was really extremely negative over the last three months. The other currencies are not much better. The dollar will appreciate against the euro by another 5 to 10 percent, and later on we’ll have to see, but that would be a near-term target.”
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.
“Sentiment on the U.S. dollar was really extremely negative over the last three months. The other currencies are not much better. The dollar will appreciate against the euro by another 5 to 10 percent, and later on we’ll have to see, but that would be a near-term target.”
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.
24 December, 2009
You Should Buy Japanese Stocks And Japanese Banks
"You should buy Japanese stocks and Japanese banks. This is the absolute contrarian play. Nobody is interested in Japan, all the funds have withdrawn money from Japan, they have given up on Japan.
I guarantee you the economy will not do well, forget about the economy, the population is shrinking, but you can have an economy that does not do well but the companies do well. There is a big difference and I think the Japanese banks are very depressed. All the banks in Asia have actually recovered very strongly but not the Japanese banks so as a contrarian play I would look at that."
In Economic Times
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.
I guarantee you the economy will not do well, forget about the economy, the population is shrinking, but you can have an economy that does not do well but the companies do well. There is a big difference and I think the Japanese banks are very depressed. All the banks in Asia have actually recovered very strongly but not the Japanese banks so as a contrarian play I would look at that."
In Economic Times
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.
22 December, 2009
Video Interview: Indian TV, December 19 (Part 1)
Latest video interview: ET NOW TV, India (December, 19)
Topics: debt to GDP, credit expansion, US economy, Federal Reserve, US Treasuries, interest rates;
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.
Topics: debt to GDP, credit expansion, US economy, Federal Reserve, US Treasuries, interest rates;
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 Interview: Indian TV, December 19 (Part 2)
Part 2 of the latest Marc Faber`s video interview to ET NOW in India.
Topics: US dollar outlook, gold, ECB, euro currency, foreign exchange reserves, indian central bank, indian stocks;
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.
Topics: US dollar outlook, gold, ECB, euro currency, foreign exchange reserves, indian central bank, indian stocks;
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 Interview: Indian TV, December 19 (Part 3)
Part 3 of the latest Marc Faber`s video interview.
Topics: Global warming businesses, shift of power between the west and the east;
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.
Topics: Global warming businesses, shift of power between the west and the east;
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.
21 December, 2009
What The Federal Reserve Is Doing Is Giving A Wrong Medicine To The Patient
"If we agree that excessive credit and excessive leverage led to the crisis, then what the Federal Reserve is doing is giving a wrong medicine to the patient—they are giving the drug addicts more drug instead of sending them to rehabilitation, which is not good for the economy. So I think that the whole policy will eventually end in another disaster but we don’t know when and many things can happen in between."
in CNBCTV-18
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 CNBCTV-18
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 December, 2009
There Has Been A Huge Shift In The Balance Of Economic Power Between The Rich Countries And The Emerging Economies
I think the world has to learn that the US is no longer as relevant as it was 20 years ago to the global economy. I mean the share of the US in the global economy has diminished very substantially. Now you have higher car sales in China than in the United States and by the way car sales are today in emerging economies including Indian, Latin American, China and so forth are larger than in the G-16 countries. In other words it is larger than in Western Europe, US and Japan combined.
Also oil consumption in emerging economies today is larger than in the developed countries. So we are dealing with a totally new world. There has been a huge shift in the balance of economic power between the rich countries, the arrogant countries of the west and the emerging economies that are coming up and that also will lead to tensions in my opinion political and geopolitical tensions.
in Economic Times, December 19th
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.
Also oil consumption in emerging economies today is larger than in the developed countries. So we are dealing with a totally new world. There has been a huge shift in the balance of economic power between the rich countries, the arrogant countries of the west and the emerging economies that are coming up and that also will lead to tensions in my opinion political and geopolitical tensions.
in Economic Times, December 19th
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.
19 December, 2009
There Are Two Commodities Right Now That Standout In Terms Of Being Incredibly Depressed
Well I was very positive about sugar and I think it may still go up but I think there are two commodities right now that standout in terms of being incredibly depressed; one is wheat in real terms inflation adjusted its at the 200 years low and I would essentially look at agriculture commodities at the present time. They have all come down and they haven't rally the much compared to industrial commodities which had big moves, copper has doubled, oil has doubled and so forth and the other one is natural gas very cheap. But it is not so easy for the individual investor to play these commodities. But these if you ask me are the ones that are very depressed.
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.
The Problem With The United States Is...
Well basically the problem of the United States is that they does not produce enough compared to the whole economy and that its net savings are very low.
In other words if you have two countries or let's put it in more simple terms you have two households or two businesses; one household spends everything it earns, one company spends everything it earns pays out in dividends and borrows money to maintain the lifestyle of the owners of the family to buy a car, to buy a house, to buy appliances, mobile phones and so forth the other household or the other company on the other hand out of its earnings put something aside and invest in education or in terms of a company in research and development or in new plans and in new machinery and so forth who do you think in the long run will be better off consuming means exactly what the word says consumption is you have a plate of food in front of you, you consume it then the food is gone and saving is to put it part of the food aside for the wintertime or for emergencies and so in my opinion has badly abused its power to borrow money basically and has not saved at all in the last few years and when you continuously didn't then obviously in the long run relatively speaking your standards of living go down compared to countries like China and India where you have a high savings rate and where people then build factories and develop their infrastructure and develop the educational standards and so on.
So if you look at 1950 the US is up here and the emerging economies are down here and now the US is still up here but is not up much and emerging economies stay close the gap, there is still a gap between the US and most emerging economies but you look at educational standards in the US, in many states of the US 20% of their people are illiterate you know this I mean horrible.
in Economic Times
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 other words if you have two countries or let's put it in more simple terms you have two households or two businesses; one household spends everything it earns, one company spends everything it earns pays out in dividends and borrows money to maintain the lifestyle of the owners of the family to buy a car, to buy a house, to buy appliances, mobile phones and so forth the other household or the other company on the other hand out of its earnings put something aside and invest in education or in terms of a company in research and development or in new plans and in new machinery and so forth who do you think in the long run will be better off consuming means exactly what the word says consumption is you have a plate of food in front of you, you consume it then the food is gone and saving is to put it part of the food aside for the wintertime or for emergencies and so in my opinion has badly abused its power to borrow money basically and has not saved at all in the last few years and when you continuously didn't then obviously in the long run relatively speaking your standards of living go down compared to countries like China and India where you have a high savings rate and where people then build factories and develop their infrastructure and develop the educational standards and so on.
So if you look at 1950 the US is up here and the emerging economies are down here and now the US is still up here but is not up much and emerging economies stay close the gap, there is still a gap between the US and most emerging economies but you look at educational standards in the US, in many states of the US 20% of their people are illiterate you know this I mean horrible.
in Economic Times
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 December, 2009
Valuations Are Not Cheap In India. Stocks May Correct.
“Valuations are not as cheap as they used to be; a 20 to 30 percent correction won’t be unusual. The markets don’t keep going up in a straight line.
Even if interest rates go up somewhat, it won’t be disastrous for Indian stocks. In the long-term, it remains very attractive because of the domestic consumption play.”
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.
Even if interest rates go up somewhat, it won’t be disastrous for Indian stocks. In the long-term, it remains very attractive because of the domestic consumption play.”
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.
17 December, 2009
Markets Can Correct 20 To 30%
“I don’t think the S&P or any market would go up significantly after rising 50-100% in the last 8 months and I don’t see the markets rising the same way over the next 8 months. Now, can they correct or go up 20-30%? The answer is yes.” in Economic Times
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.
Emerging Markets Outlook
“There are people who made a lot of money in 2009 and this category is concerned that the markets have overshot. So, some of them have taken profits and some of them are inclined to do so. In theory, it is possible that there is a dollar rally and an outperformance in the S&P vis-à-vis emerging markets.” in Economic Times
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.
10 December, 2009
Financial Reform: I Don`t Think The Government Will Reform The Industry That Much
"There will be a lot of noise and in the end not much action. The financial lobby is so powerful. I don't think the government will reform the industry that much." in Reuters.com
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.
07 December, 2009
US Monetary Expansionary Policies
"Ben Bernanke is a great expert on the Great Depression in 1929-1932," says Dr. Marc Faber, "but he was not paying attention to the years of excessive credit growth leading up to it in the 1920s."
Whereas in 1929, global credit represented 186% of the global economy, he adds, that figure now stands at 375%. And that 375% does not even account for future liabilities that will arise from Medicare, Medicaid and Social Security, which are estimated in the US at between $59 and $110 trillion. "If those are included we would have a total credit to GDP ratio of around 600%." says Dr. Marc Faber
With this level of debt, the US can forget about tightening monetary policy and will go on printing money, with obvious implications for asset markets, a point similar to the one Faber made at AsianInvestor's Korea Investment Forum in mid-2009.
"It's important to understand the philosophy of the Federal Reserve, which has structured its monetary policy around core inflation," Marc Faber adds. "That excludes energy and food, so as far as I'm concerned that doesn't apply to you [everyone in the audience], because you all eat, and you all fly and use air conditioners."
Making reference to how US expansionary monetary policies, with "artificially low interest rates", have created "the credit bubble, the housing boom, the refinancing boom and the other problems we have today", Marc Faber argues that such policies have been highly destabilising for economic growth and for asset markets.
One of the examples he cites is that of commodity prices: "Had the Fed not slashed interest rates so dramatically after September 2007, we wouldn't have had the CRB Commodity Index going ballistic, and in particular oil prices which rose steadily from around $75 a barrel in May 2006 to $147/bbl by July 2008, before plummeting to close to $30/bbl in the space of six months."
"The easy monetary policies have had a decided impact, because of higher costs for consumers and businesses due to higher oil prices," Faber says. "This crisis has not solved anything; we have less transparency than before."
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.
Whereas in 1929, global credit represented 186% of the global economy, he adds, that figure now stands at 375%. And that 375% does not even account for future liabilities that will arise from Medicare, Medicaid and Social Security, which are estimated in the US at between $59 and $110 trillion. "If those are included we would have a total credit to GDP ratio of around 600%." says Dr. Marc Faber
With this level of debt, the US can forget about tightening monetary policy and will go on printing money, with obvious implications for asset markets, a point similar to the one Faber made at AsianInvestor's Korea Investment Forum in mid-2009.
"It's important to understand the philosophy of the Federal Reserve, which has structured its monetary policy around core inflation," Marc Faber adds. "That excludes energy and food, so as far as I'm concerned that doesn't apply to you [everyone in the audience], because you all eat, and you all fly and use air conditioners."
Making reference to how US expansionary monetary policies, with "artificially low interest rates", have created "the credit bubble, the housing boom, the refinancing boom and the other problems we have today", Marc Faber argues that such policies have been highly destabilising for economic growth and for asset markets.
One of the examples he cites is that of commodity prices: "Had the Fed not slashed interest rates so dramatically after September 2007, we wouldn't have had the CRB Commodity Index going ballistic, and in particular oil prices which rose steadily from around $75 a barrel in May 2006 to $147/bbl by July 2008, before plummeting to close to $30/bbl in the space of six months."
"The easy monetary policies have had a decided impact, because of higher costs for consumers and businesses due to higher oil prices," Faber says. "This crisis has not solved anything; we have less transparency than before."
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 December, 2009
The US Dollar Outlook
“The intrinsic value of the US dollar is zero and that’s where it will go. Whether it will happen in five or 10 years time, nobody knows… I don’t believe in a new world reserve currency for the immediate future, but I believe that the U.S. dollar, after a near-term rebound that could last three-four months, will continue to depreciate.”
in dailyreckoning.com
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 dailyreckoning.com
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.
02 December, 2009
The Ultimate Crisis Will Not Just Bankrupt The Banking System, It Will Bankrupt Governments
“In the context of all the default that will happen in the world, Dubai is not a big thing. But it’s a reminder that governments can default.
Eventually, I suppose a lot of governments will be bust, including the United States. Nothing has been resolved, it’s just being postponed. The ultimate crisis will not just bankrupt the banking system and financial as happened in 2008, it will bankrupt governments.”
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.
Eventually, I suppose a lot of governments will be bust, including the United States. Nothing has been resolved, it’s just being postponed. The ultimate crisis will not just bankrupt the banking system and financial as happened in 2008, it will bankrupt governments.”
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.
01 December, 2009
Bloomberg TV Video Interview: December 09
Latest Marc Faber`s video interview on Bloomberg TV.
Topics:
- Dubai was just the tip of the iceberg. The ultimate result of the financial crisis will be not just bankrupt banks, but more bankrupt governments. This highlights the risk of other defaults. Eventually a lot of governments will go bust, including the United States
- Massive U.S. economic stimulus means that U.S. bonds will one day have to offer higher yield than corporate bonds due to default risk.
- China has learned one thing from the U.S. -- how to massage and doctor economic statistics.
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.
Topics:
- Dubai was just the tip of the iceberg. The ultimate result of the financial crisis will be not just bankrupt banks, but more bankrupt governments. This highlights the risk of other defaults. Eventually a lot of governments will go bust, including the United States
- Massive U.S. economic stimulus means that U.S. bonds will one day have to offer higher yield than corporate bonds due to default risk.
- China has learned one thing from the U.S. -- how to massage and doctor economic statistics.
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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