29 October, 2010
Barron`s Video Interview: We Are Very Close To Inflection Points.
Latest video interview from Dr. Marc Faber.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
28 October, 2010
A Correction Is Overdue, But Don`t Expect A Bear Market
"A correction is overdue, but I would not think that a bear market is around the corner. The correction will be a buying opportunity and then we will have a boom in stocks and in commodities like we had between the end of 1999 and March 2000 when markets went up very strongly."
in Bloomberg.com
Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Bloomberg.com
Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
27 October, 2010
A Lot Of QE2 Has Been Discounted
Back in July/ August, investors were bearish on the market and they talked about the Hindenburg Omen and that everything would crash. What then happened was, September was very strong, October was a reasonably good month as well and the market has gone from a low on July 1st of 1010 on the S&P 500 Index, to close to 1200.
And so, a lot of QE2 has been discounted, and if you were Mr. Bernanke, I suppose you would probably disappoint investors somewhat with QE2, and watch the market reaction. If the markets really sell off, you can then increase QE2, or launch QE3, QE4, QE5 and so forth. There will be many more QE`s.
Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
And so, a lot of QE2 has been discounted, and if you were Mr. Bernanke, I suppose you would probably disappoint investors somewhat with QE2, and watch the market reaction. If the markets really sell off, you can then increase QE2, or launch QE3, QE4, QE5 and so forth. There will be many more QE`s.
Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Bloomberg Video Interview: October 26
Marc Faber, publisher of the Gloom, Boom & Doom report, discusses the potential impact of further quantitative easing by the Federal Reserve on stocks. Faber, speaking with Margaret Brennan on Bloomberg Television's "InBusiness," says more monetary easing could disappoint investors and may prompt a correction in U.S. stocks. (Source: Bloomberg)
Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
26 October, 2010
A Huge Money-Printing Machine In The US That Produces An Unlimited Quantity Of Dollars
The best way to visualize this process is to think of a huge money-printing machine in the US that produces an unlimited quantity of dollars. Most of these dollars flow to the corporate sector, financial institutions, and wealthy individuals. A large proportion of these dollars is then transferred to emerging economies through the US trade deficit and investment flows, and boosts economic activity and increases wealth in emerging economies relative to the US.
Some of these dollars then find their way back to the US and support Treasury bond prices. But since fewer dollars find their way back to the US than exit the country, the dollar has a weakening tendency against emerging market currencies and, especially, against hard assets whose supply is extremely limited compared to the money that the money machine keeps spitting out.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Some of these dollars then find their way back to the US and support Treasury bond prices. But since fewer dollars find their way back to the US than exit the country, the dollar has a weakening tendency against emerging market currencies and, especially, against hard assets whose supply is extremely limited compared to the money that the money machine keeps spitting out.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
25 October, 2010
Print, Print, Print.
No matter what central bankers and the cheerleading, mostly useless academics who surround them pronounce in their self-created aura of infinite academic “delicacy and refinement”, under the auspices of the Fed they will do precisely one thing: print, print, and print. Sadly, as Mignon McLaughlin observed, “The know-nothings are, unfortunately, seldom the do-nothings.”
I should like to emphasize once again that the US Fed will continue to monetize massively on any sign of either further economic weakness or a more meaningful (10% or so) financial and property market decline.
In the world I described above, the increased supply of dollars will flow somewhere.
Recently, CNBC interviewed 81-year-old Bernie Marcus, one of the founding partners of Home Depot. (He was CEO between 1979 and 1997.) Marcus, who is a self-made man and completely level-headed and without arrogance of any sort, described how he and Arthur Blank (the other co- founder) struggled when they opened their first store in 1979, in Atlanta.
For example, at 10 pm on his 50th birthday, he said, he was still in the store, moving boxes around without air-conditioning, because they needed to save money. He then said that he doesn’t mix with “important people”, such as Jeff Immelt of GE, and smooth-talking bankers and academics; instead, he talks daily with small businessmen, which is what he was when he started his business. He then cited several examples of people who run small businesses and who had told him how difficult business conditions were. He suggested that, like the king in a fairytale, Mr. Obama should dress up at night like a pauper and go out and talk to business people. According to Marcus, King Obama would then realize how unpopular he is and how destructive his economic policies have been for small businesses. He also suggested that the academics at the Fed and in the administration should, for once in their lives, go out and work, instead of sitting in big glass office towers and having no clue about what is ailing the economy.
Marcus then emphasized that none of the small businessmen he talked to had any plans to hire staff, because they felt there was far too much uncertainty about what kinds of regulations and laws Congress and the administration would come up with next. All his business friends and customers had told him that Obamacare would be a complete disaster for them. (It imposes on small businesses enormous non-medical tax compliance. It will require them to mail IRS 1099 tax forms to every vendor from whom they make purchases of more than US$600 in a year, with duplicate forms going to the IRS. Obamacare will also fund 16,000 new IRS agents…) Asked what he would suggest as a solution, Marcus, who looks much younger than his age and is still very alert, responded that the US would be greatly helped if Congress went on a holiday for two years, as this would prevent the government from doing even more economic damage.
I have mentioned on previous occasions the critical views of other businessmen, such as Lee Iacocca (formerly of Chrysler) and Paul Otellini (CEO of Intel). Like Marcus, their view is that regulation is stifling capital spending and any employment gains in the US. But, whereas the “Otellinis” of this world are more in touch with large corporations, Marcus – whose philosophy is: “Whatever it takes” – is cultivating relationships with a vast number of ordinary people who run their privately owned businesses and have sales of from half a million to 100 million dollars.
Marcus was also very critical of the various financial bailouts (unlike the self-serving and hypocritical Charles Munger). But one point he made was particularly interesting. He said that the business people he talked to had access to credit; that banks were willing to lend them money! But they had no interest in borrowing funds given the current regulatory uncertainties. I should mention that Marcus is the antithesis of economic policy decision makers and academics who imagine themselves to be of infinite delicacy and refinement and suffer from “a narrowing of the mind” – not because they travel, but because they have never in their lives worked in a real business. But, obviously, he knows what he is talking about. (Home Depot now employs over 300,000 people.)
Now, does anyone really think that, under the conditions Marcus has described, the Fed’s increase in the quantity of money will flow into US employment and real wage gains? As Marcus likes to say, “You must be kidding!”
The money flows will continue to boost employment in emerging economies, along with their wages and asset prices.
The best way to visualize this process is to think of a huge money-printing machine in the US that produces an unlimited quantity of dollars. Most of these dollars flow to the corporate sector, financial institutions, and wealthy individuals. A large proportion of these dollars is then transferred to emerging economies through the US trade deficit and investment flows, and boosts economic activity and increases wealth in emerging economies relative to the US.
Some of these dollars then find their way back to the US and support Treasury bond prices. But since fewer dollars find their way back to the US than exit the country, the dollar has a weakening tendency against emerging market currencies and, especially, against hard assets whose supply is extremely limited compared to the money that the money machine keeps spitting out.
Regards,
Dr. Marc Faber
for The Daily Reckoning
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
I should like to emphasize once again that the US Fed will continue to monetize massively on any sign of either further economic weakness or a more meaningful (10% or so) financial and property market decline.
In the world I described above, the increased supply of dollars will flow somewhere.
Recently, CNBC interviewed 81-year-old Bernie Marcus, one of the founding partners of Home Depot. (He was CEO between 1979 and 1997.) Marcus, who is a self-made man and completely level-headed and without arrogance of any sort, described how he and Arthur Blank (the other co- founder) struggled when they opened their first store in 1979, in Atlanta.
For example, at 10 pm on his 50th birthday, he said, he was still in the store, moving boxes around without air-conditioning, because they needed to save money. He then said that he doesn’t mix with “important people”, such as Jeff Immelt of GE, and smooth-talking bankers and academics; instead, he talks daily with small businessmen, which is what he was when he started his business. He then cited several examples of people who run small businesses and who had told him how difficult business conditions were. He suggested that, like the king in a fairytale, Mr. Obama should dress up at night like a pauper and go out and talk to business people. According to Marcus, King Obama would then realize how unpopular he is and how destructive his economic policies have been for small businesses. He also suggested that the academics at the Fed and in the administration should, for once in their lives, go out and work, instead of sitting in big glass office towers and having no clue about what is ailing the economy.
Marcus then emphasized that none of the small businessmen he talked to had any plans to hire staff, because they felt there was far too much uncertainty about what kinds of regulations and laws Congress and the administration would come up with next. All his business friends and customers had told him that Obamacare would be a complete disaster for them. (It imposes on small businesses enormous non-medical tax compliance. It will require them to mail IRS 1099 tax forms to every vendor from whom they make purchases of more than US$600 in a year, with duplicate forms going to the IRS. Obamacare will also fund 16,000 new IRS agents…) Asked what he would suggest as a solution, Marcus, who looks much younger than his age and is still very alert, responded that the US would be greatly helped if Congress went on a holiday for two years, as this would prevent the government from doing even more economic damage.
I have mentioned on previous occasions the critical views of other businessmen, such as Lee Iacocca (formerly of Chrysler) and Paul Otellini (CEO of Intel). Like Marcus, their view is that regulation is stifling capital spending and any employment gains in the US. But, whereas the “Otellinis” of this world are more in touch with large corporations, Marcus – whose philosophy is: “Whatever it takes” – is cultivating relationships with a vast number of ordinary people who run their privately owned businesses and have sales of from half a million to 100 million dollars.
Marcus was also very critical of the various financial bailouts (unlike the self-serving and hypocritical Charles Munger). But one point he made was particularly interesting. He said that the business people he talked to had access to credit; that banks were willing to lend them money! But they had no interest in borrowing funds given the current regulatory uncertainties. I should mention that Marcus is the antithesis of economic policy decision makers and academics who imagine themselves to be of infinite delicacy and refinement and suffer from “a narrowing of the mind” – not because they travel, but because they have never in their lives worked in a real business. But, obviously, he knows what he is talking about. (Home Depot now employs over 300,000 people.)
Now, does anyone really think that, under the conditions Marcus has described, the Fed’s increase in the quantity of money will flow into US employment and real wage gains? As Marcus likes to say, “You must be kidding!”
The money flows will continue to boost employment in emerging economies, along with their wages and asset prices.
The best way to visualize this process is to think of a huge money-printing machine in the US that produces an unlimited quantity of dollars. Most of these dollars flow to the corporate sector, financial institutions, and wealthy individuals. A large proportion of these dollars is then transferred to emerging economies through the US trade deficit and investment flows, and boosts economic activity and increases wealth in emerging economies relative to the US.
Some of these dollars then find their way back to the US and support Treasury bond prices. But since fewer dollars find their way back to the US than exit the country, the dollar has a weakening tendency against emerging market currencies and, especially, against hard assets whose supply is extremely limited compared to the money that the money machine keeps spitting out.
Regards,
Dr. Marc Faber
for The Daily Reckoning
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Taxation Is Nothing But A Form Of Inflation
"Marc Faber is one of the big picture guys who we really like and follow. Faber spoke to The Daily Reckoning recently and as usual, had some good investment wisdom to offer. Faber opined that it is not just about inflation versus deflation now. He observed that we live in a globalised world and in such an economic system, there are chances that both the 'flations' co-exist. Thus, while the developed world remains engulfed in a potentially deflationary environment, there is a lot of inflation happening in emerging economies.
Faber also argued that taxation is nothing but a form of inflation. This is because it is not easy to say 'I m going to tax you and you will pay the tax'. This does not work as per Faber. There are strong chances that these taxes are rolled over onto other people. They can be rolled over to the consumer and so on. Thus, this is the real problem with respect to fiscal policies, opines Faber. One just doesn't know who will end up holding the bag whenever a tax is imposed. Indeed, we couldn't have agreed more."
in Equity Master
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Faber also argued that taxation is nothing but a form of inflation. This is because it is not easy to say 'I m going to tax you and you will pay the tax'. This does not work as per Faber. There are strong chances that these taxes are rolled over onto other people. They can be rolled over to the consumer and so on. Thus, this is the real problem with respect to fiscal policies, opines Faber. One just doesn't know who will end up holding the bag whenever a tax is imposed. Indeed, we couldn't have agreed more."
in Equity Master
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
23 October, 2010
Factors Leading To More Inflation
"So what happens if the economy is very weak under the Obama administration, the fiscal deficit goes up not down. The government tanks as a percent of economy expands. Monetary policies will have another huge easy move, or another extraordinary measure increasing the effects balance sheet. These are all factors that then lead eventually to more inflation."
wallstreetpit.com
Related ETFs: iShares Silver Trust (ETF) (NYSE:SLV), SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
wallstreetpit.com
Related ETFs: iShares Silver Trust (ETF) (NYSE:SLV), SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
22 October, 2010
In Emerging Economies You Have A Lot Of Inflation
I can assure you, you can go anywhere in the world – whether it’s Brazil, Africa, Asia, Central Asia, Russia. The price level today is of course much higher than 20 years ago or ten years ago. So the US and western Europe, they may have on an international scale a bias towards maybe deflating a little bit, certainly. Real wages are deflating. But in emerging economies you have a lot of inflation. In some countries you have food prices going up annually at 20 percent per annum. And nobody can tell me that his energy bill is today lower than it was ten years ago.
Because the price of oil is much higher. It is up from ten dollars a barrel to say eighty dollars a barrel.
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) , iPath MSCI India Index ETN (NYSE:INP) , Market Vectors Vietnam ETF. (NYSE:VNM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Because the price of oil is much higher. It is up from ten dollars a barrel to say eighty dollars a barrel.
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) , iPath MSCI India Index ETN (NYSE:INP) , Market Vectors Vietnam ETF. (NYSE:VNM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
The Rise Of Emerging Market Economies
And we’ll have volatility in emerging economies, but in general I think that as a percent of world’s GDP, you will find in 10-20 years time countries like India, China, Vietnam, Latin America, Africa, the Middle East, Russia, Central Asia will have a much larger weight and also a much larger say in the global economic affairs and political affairs. And that will lead to a lot of tension and volatilities in asset markets.
in wallstreetpit.com
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI) , iPath MSCI India Index ETN (NYSE:INP) , Market Vectors Vietnam ETF. (NYSE:VNM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in wallstreetpit.com
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI) , iPath MSCI India Index ETN (NYSE:INP) , Market Vectors Vietnam ETF. (NYSE:VNM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
21 October, 2010
Video Interview (Daily Reckoning)
"The world is in transition and you have some trends that are favorable and other trends that are no favorable. So I think it’s not a question to be ultra-bearish or ultra-bullish but to try to identify where there are opportunities. And I believe, in general, we live through very interesting times in the sense that the weight of the global economy is shifting to emerging economies."
Dr. Marc Faber
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
20 October, 2010
Markets Are Likely To Be Volatile. The Key Will Be Capital Preservation.
"(Markets) are likely to remain extremely volatile for a long time and the key will be to preserve your capital given the people we have at the U.S. Federal Reserve, whose intention is to debase the value of paper money."
in CNBC.com
Related ETF: iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in CNBC.com
Related ETF: iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
The Currency War Can Be Solved With Austerity In The US
“The currency war can be solved one way: with austerity in the United States. The U.S. needs to redirect the economy to R&D, education and infrastructure expenditure, but instead they want to get spending going again.”
in Bloomberg.com
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Bloomberg.com
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
19 October, 2010
My Worst Investment Decisions
My worst investment decisions so far is to lend money to friends. So far, it has all came to zero.
Shorting the Nasdaq in 1998 was also a disaster, and it will remain, in my life as an investment advisor and fund manager, a very black spot. The damage was considerable.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Shorting the Nasdaq in 1998 was also a disaster, and it will remain, in my life as an investment advisor and fund manager, a very black spot. The damage was considerable.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
What Is The Best Investment You Have Ever Made?
Usually when faced with this question people will think of investments in monetary terms. However, in our lives, our best investments are probably the ones you cannot measure the way a portfolio manager will measure his performance.
These investments relate to education, culture, job satisfaction, eagerness to learn, and happiness through philosophy, religion, self-improvement, compassion, love, a harmonious family, friendships, readiness to do good deeds etc.
I do know some of the world's richest people. In monetary terms, they all performed very well. In terms of a fulfilling life, I am less sure.
When it comes to money, the best investments were probably the ones I did not make.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
These investments relate to education, culture, job satisfaction, eagerness to learn, and happiness through philosophy, religion, self-improvement, compassion, love, a harmonious family, friendships, readiness to do good deeds etc.
I do know some of the world's richest people. In monetary terms, they all performed very well. In terms of a fulfilling life, I am less sure.
When it comes to money, the best investments were probably the ones I did not make.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
18 October, 2010
50% Of Tax Revenues Will Be Used Just To Cover The Interest Payments
Faber believes that at some stage, about 50% of tax revenues will be used just to cover the interest payments on the US government debt. He says this is unsustainable and at that point the the Fed will be really forced to print more money.
in Lew Rockwell
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Lew Rockwell
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
15 October, 2010
Gold Cannot Be "Printed".
"Gold is not a liability of someone else, you really own it, you keep it in a safe deposit box, its quantity can not be increased at the same rate as you can print money which will eventually again weaken the US dollar. I am not saying that the dollar will go straight down, but eventually the purchasing power of money will lose."
Related ETFs: SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
14 October, 2010
Bubble Bursting
“The greater the mania in one stock, or entire market, the more likely it is that a burst bubble creates a permanent shift into another asset class.”
in Tomorrow`s Gold
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Tomorrow`s Gold
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
12 October, 2010
Global Markets Are Heading For An Important Turning Point
Global markets are heading for an “important turning point” as interest rates begin to rise within about three months and the U.S. dollar gains, according to investor Marc Faber.
Investors should buy stocks and sell cash and bonds because governments are continuing to print too much money and may create a new credit bubble, Dr. Marc Faber, told reporters during a forum in Seoul today.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Investors should buy stocks and sell cash and bonds because governments are continuing to print too much money and may create a new credit bubble, Dr. Marc Faber, told reporters during a forum in Seoul today.
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 On Everything
Instead of interest rates going down, they could start to go up, instead of the dollar being weak, it could strengthen. I’m ultra-bearish on everything, but I believe you’ll be better off owning shares than government bonds.
in Bloomberg
Related ETFs: SPDR S&P 500 ETF (NYSE:SPY) , ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF) (NYSE:QID), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Bloomberg
Related ETFs: SPDR S&P 500 ETF (NYSE:SPY) , ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF) (NYSE:QID), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
07 October, 2010
Bond Yields Will Rise Massively
“Over the next 10 years, we won’t see any restrictive monetary policy anymore and no real interest rates above zero. Bond yields will rise massively.”
in Bloomberg
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Bloomberg
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
06 October, 2010
Stocks Could Experience Some Downside Turbulence In October And November
Dr. Faber says stocks could experience some “downside turbulence” in October and November, with a downside target of no more than 950 on the S&P on the pullback. Any break below 1,000 will rattle the Fed, he says, and rather doubts Federal Reserve Chairman Ben Bernanke will allow further market declines once 1,000 is reached.
At the 1,000 level, “QEII will come in earnest and in big amounts,” says Faber, intimating the Fed’s prerogative of supporting equities (directly, if necessary).
Related ETFs: SPDR S&P 500 ETF (NYSE:SPY) , ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF) (NYSE:QID), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
At the 1,000 level, “QEII will come in earnest and in big amounts,” says Faber, intimating the Fed’s prerogative of supporting equities (directly, if necessary).
Related ETFs: SPDR S&P 500 ETF (NYSE:SPY) , ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF) (NYSE:QID), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
05 October, 2010
US Treasuries May Become Worthless
Marc Faber said U.S. Treasuries may become “worthless” as central banks, led by the Federal Reserve, “print money” in an effort to boost economies, the Handelsblatt newspaper cited the investor as saying in an interview.
in Bloomberg.com
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Bloomberg.com
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Over The Next 10 Years, We Won’t See Any Restrictive Monetary Policy
In an interview with the German newspaper Handelsblatt Dr. Faber has warned that bond yields will rise massively and US government bonds could become worthless:
“Over the next 10 years, we won’t see any restrictive monetary policy anymore and no real interest rates above zero,” he said.
in BusinessInsider
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)
“Over the next 10 years, we won’t see any restrictive monetary policy anymore and no real interest rates above zero,” he said.
in BusinessInsider
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)
04 October, 2010
October Market Outlook (Highlights)
Here are a few highlights of Faber`s Monthly Report:
I. Equity Markets -Faber was correct last month in predicting a rally based upon extremely negative investor sentiment. He is more cautious about October because stocks are very overbought according to the % of stock above their 50 day moving average. Another reason for concern, is that after a strong September, markets often fall sharply in October and November. He is underweight equities right now.
II. Emerging Markets - Countries like Indonesia, Malaysia, etc are likely entering a price bubble thanks to worldwide money printing. Faber would not be buying these high-flying markets right now even though they could enter a final parabolic phase. He would be selling positions.
III. Dollar and Currencies - The dollar is extremely oversold and investor sentiment is very bearish. Conversely, investors are very bullish on the Euro (96% bullish according to DSI). Faber believes that a inflection point could be at hand leading to a nice move upward move in the dollar. He would not be short the dollar right now.
IV. Gold and Commodities - Because he is bullish on the dollar right now, Faber believes there could be a significant correction in gold and other commodities. This could be a rather large decline, but would represent a buying opportunity. Why? More Quantitative Easing would be on the way.
V. Bonds - If the market declines and the dollar surges, this would be a positive for treasuries. However, upside is limited to 2.08% on the ten year (Dec 2008 low). Faber does not expect yields to fall to new lows.
VI. Quantitative Easing - The decline in asset markets will provide cover for the Fed to print more money.
Source: BlackSwanInsights
Related ETFs: iShares MSCI Malaysia Index Fund (ETF) (NYSE:EWM), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), PowerShares DB US Dollar Index Bullish (NYSE:UUP), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
I. Equity Markets -Faber was correct last month in predicting a rally based upon extremely negative investor sentiment. He is more cautious about October because stocks are very overbought according to the % of stock above their 50 day moving average. Another reason for concern, is that after a strong September, markets often fall sharply in October and November. He is underweight equities right now.
II. Emerging Markets - Countries like Indonesia, Malaysia, etc are likely entering a price bubble thanks to worldwide money printing. Faber would not be buying these high-flying markets right now even though they could enter a final parabolic phase. He would be selling positions.
III. Dollar and Currencies - The dollar is extremely oversold and investor sentiment is very bearish. Conversely, investors are very bullish on the Euro (96% bullish according to DSI). Faber believes that a inflection point could be at hand leading to a nice move upward move in the dollar. He would not be short the dollar right now.
IV. Gold and Commodities - Because he is bullish on the dollar right now, Faber believes there could be a significant correction in gold and other commodities. This could be a rather large decline, but would represent a buying opportunity. Why? More Quantitative Easing would be on the way.
V. Bonds - If the market declines and the dollar surges, this would be a positive for treasuries. However, upside is limited to 2.08% on the ten year (Dec 2008 low). Faber does not expect yields to fall to new lows.
VI. Quantitative Easing - The decline in asset markets will provide cover for the Fed to print more money.
Source: BlackSwanInsights
Related ETFs: iShares MSCI Malaysia Index Fund (ETF) (NYSE:EWM), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), PowerShares DB US Dollar Index Bullish (NYSE:UUP), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), SPDR Gold Trust (ETF) (NYSE:GLD)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
The Benefit Of Expansionary Monetary Policies Has Not Been Felt In The United States, But In Emerging Economies
The criticism I have is that Fed can control the quantity of money quantity that it drops onto the United States. But they do not control where it will flow to and this money has flown through the American trade and current account deficit to emerging economies and this has boosted the growth rates in emerging economies and their currencies. So the benefit of expansionary monetary policies has not been felt in the United States, but in emerging economies and that is my main criticism.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM)
When Commodity Prices Go Up Strongly In A Country Like India, It Benefits Some Parts Of The Economy
Now, when commodity prices go up strongly in a country like India, it benefits some parts of the economy, some segments of the population. For example, if agricultural prices go up, then the rural sector does well. In India, the urbanisation rate is just 30%. So if rice prices, sugar prices, cotton price and so forth go up, the rural sector benefits whereby the urban centre is frequently squeezed by higher food prices.
So it’s a mixed picture. But in general I would say - if I look at rural areas in , in Indonesia, Malaysia, Thailand, the Philippines and also India - the rural areas are doing very well. So it’s a plus for their economies because by and large the urbanisation rate in the case of India is still relatively low.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: WisdomTree India Earnings Fund (ETF) (NYSE:EPI), iPath MSCI India Index ETN (NYSE:INP)
So it’s a mixed picture. But in general I would say - if I look at rural areas in , in Indonesia, Malaysia, Thailand, the Philippines and also India - the rural areas are doing very well. So it’s a plus for their economies because by and large the urbanisation rate in the case of India is still relatively low.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: WisdomTree India Earnings Fund (ETF) (NYSE:EPI), iPath MSCI India Index ETN (NYSE:INP)
01 October, 2010
I Am Very Negative About Economic Growth In The US
"That’s why I’m very negative about economic growth in the US. It just won’t happen. Can the US economy grow at 2% per annum or, in the best case scenario, at 3% per annum with current policies? Yes, but it will create a lot of distortions. The best case for an economy that goes into a boom phase, in other words over consumption, is to bring it back into the trend line as quickly as possible. So when you have an excursion into a boom, what you need is a cleansing of the system and that may take a few years to happen in the US because the excesses were built up not just in the last 7 years between 2000 and 2007 but, over the last 25 years. So, to really bring the US back into sanity—into a healthy mode where the economy can grow—might take 5 to 10 years, but it won’t happen under the Obama administration."
in Gold Seek
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
in Gold Seek
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
The Federal Reserve’s Policies Basically Encouraged Sub Prime Lending
Commodity prices peaked in May 2006 and after May 2006, especially in 2007, where there was actually a slowdown in the global economy and so there was no reason for commodity prices to go ballistic, but the Federal Reserve slashed interest rates after September 2007. In a global economy that was going into recession, the price of oil went from 78 dollars to 147 dollars and that burdened the US consumer with additional “tax” of five hundred billion dollars. I am not saying that is the only reason but it helped push the US consumer into recession. The fact is that without the Federal Reserve’s expansionary monetary policy after 2001, we wouldn't have had a housing bubble to the same extent. The Federal Reserve’s policies basically encouraged sub prime lending; it’s not the case that they discouraged it.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: iPath S&P GSCI Crude Oil Total Return (NYSE:OIL), United States Oil Fund LP (ETF) (NYSE:USO)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Related ETFs: iPath S&P GSCI Crude Oil Total Return (NYSE:OIL), United States Oil Fund LP (ETF) (NYSE:USO)
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