Gold Weakness: This Correction Can Reach 20%, Top To Bottom

“From the top to the bottom the correction could be 20%.” - In Bloomberg.com

Related: SPDR Gold Trust (ETF) (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Newmont Mining Corporation (Public, NYSE:NEM) , NovaGold Resources Inc. (USA) (AMEX:NG) , Barrick Gold Corporation (USA) (Public, NYSE:ABX)

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

The Economy Has Become A Drug Addict

“The economy has become a drug addict, and by injecting more drugs, you’re not going to solve the problem. You have to put it in rehab.” - in Bloomberg

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

A Correction Is Coming.

“A correction is coming. Equities in the U.S. will go down less than emerging markets.” - in an interview from Zurich on Bloomberg TV

Related: SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM), iPath MSCI India Index ETN (NYSE:INP), WisdomTree India Earnings Fund (ETF) (NYSE:EPI), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Market Vectors Vietnam ETF. (NYSE:VNM), iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM) , Market Vector Russia ETF Trust (NYSE:RSX), 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.

US Treasuries Are The Best Place For The Next 10 Days

“Treasuries are the best place for the next 10 days. Not for the longer-term” - in Bloomberg

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) , iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) , iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), ProShares UltraShort QQQ (ETF) (NYSE:QID)

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

If The S&P 500 Index Declines By 10 Or 20% We Will Have QE3

"I feel that if the stock market in the US declines 10% or 20%, we would have QE3, in other words more money printing.We would have quantitative easing three and that will again boost stock prices, but not necessarily the economy of the man on the street." in BBC News

Related ETFs: SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), iShares Russell 2000 Index (ETF) (NYSE:IWM)

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

The Euro Will Survive, But Some Weaker Members Will Default

I think the euro will survive, but as is the case in the US, the ECB is expanding its balance sheet, and that hates to see the balance sheet because the quality of the bonds they own must be of very poor quality and so, we will have to muddle through. But, in general, I believe some weaker countries or weaker members of the EU like Spain, Portugal, Greece eventually will default. - in BBC News

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

I Am Very Negative About The World

I am very negative about the world, because I think that what caused the crisis in 2008 was excessive credit growth, excessive leverage in the system, and now the private sector is deleveraging, but governments are printing money, and through huge fiscal deficits are creating even more debt growth. So in other words, what killed the economy is now being applied to revive the economy, and I think this will lead to a disaster. But if you think it through and you believe in the disaster scenario I'm envisioning, then you will be better off in equities and in commodities than in government bonds and cash. - in BBC News

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF), SPDR S&P 500 ETF (NYSE:SPY)

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

Oil Prices Outlook

Looking at the dynamics of the oil market, I think that investing in oil is quite desirable for 2 reasons:

First of all, if the optimists are right, and we have a global economic recovery, and it would appear for the time being to be the case...because during the crisis of 2008 and 2009, oil consumption in the developed world went down, but in emerging economies it continued to go up. But now, in the developed world its picking up, so total global oil consumption is rising and that will put pressure on oil prices.

But if you believe in a horror scenario, which eventually brings about high inflation and then war, oil is also very desirable because it will lead to interruptions on supply. In either case, if you are very bullish or very bearish, you should own some oil or energy equities. - in CNBC

Related: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return ( NYSE:OIL) , Murphy Oil Corporation (NYSE:MUR), Marathon Oil Corporation (NYSE:MRO)

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

CNBC Video Interview: US Equities, Emerging Markets, China And Oil

Related ETFs: United States Oil Fund LP (ETF) (Public, NYSE:USO), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), SPDR S&P 500 ETF (Public, NYSE:SPY)

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

We Have Inflation In Vietnam And China

"We have high inflation in Vietnam and China. If each of the central banks does not do anything, inflation will accelerate and eventually cause even more problems. If the central banks step in and tighten monetary conditions, it would not be very good for equities."- in Economic Times

Related: iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Market Vectors Vietnam ETF. (NYSE:VNM)

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

The Sensex Will Go Down to 16,000 At Least

"We are down almost 10% from the peak and will go down on the Sensex to around 16000 at least." - in Economic Times

Related: iPath MSCI India Index ETN (NYSE:INP), WisdomTree India Earnings Fund (ETF) (NYSE:EPI)

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

The Federal Reserve Repeatedly Messes Up Everything

“If there’s one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution.” - in www.favstocks.com

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) , iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), SPDR S&P 500 ETF (NYSE:SPY)

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

Commodities: Period Of Consolidation Or Serious Correction Could Unfold

"Each commodity is differently placed. In general, the price of natural gas is cheap while cotton price is on the high side. Grains will move according to supply issues. If the floods or droughts continue, then we will face disruption and prices could go higher. The asset markets are quite extended and the period of consolidation or serious correction could unfold." - in CNBC TV-18

Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), United States Natural Gas Fund, LP (NYSE:UNG), PowerShares DB Agriculture Fund (NYSE:DBA), SPDR Gold Trust (ETF) (NYSE:GLD), iShares Silver Trust (ETF) (NYSE:SLV)

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

Emerging Markets Will Underperform.

"The emerging economies’ stock markets have outperformed the US significantly over the last 18 months since March 2009. We might have a period in which the more mature economies like the US and Europe can outperform emerging markets." - in CNBC TV18

Related: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM) , Market Vector Russia ETF Trust (NYSE:RSX), 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.

Bullish On Oil. Going Long Nymex Oil Futures.

"Faber seemed most bullish on the price of oil and pointed out that Chinese consumers consume only 2 barrels of oil per capita/year while US consumers consume over 20 barrels of oil per capita/year." - in www.robertsinn.com, in "A Lunch with Dr. Faber"

Related: United States Oil Fund LP (ETF) (NYSE:USO), Energy Select Sector SPDR (ETF) (NYSE:XLE), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL), Murphy Oil Corporation (NYSE:MUR), Marathon Oil Corporation (NYSE:MRO)


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

The Eurozone Is Worse Off Than The United States

The Eurozone is worse off than even the US at this point because they lack a single fiscal authority. Difficult to implement a federal/super-sovereign approach in the Eurozone due to challenge of implementing a single taxing authority with supervisory and enforcement powers. - in Seeking Alpha, from a Marc Faber Luncheon - January 11, 2011

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

Long Term US Treasuries Are A Suicidal Investment

“This [long-term U.S. Treasuries] is a suicidal investment. Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.” - in Bloomberg

Related ETFs: 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 The Near Term There Is No Danger Of An Implosion In China

“It may be a painful adjustment, but in the near term there is no danger of an implosion in China. If I was negative about China and the credit implosion in China, I would short the Chinese banks.” - in Bloomberg

Related: iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ)

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

Bullish On Japan

"While everyone is still bearish on Japan, Faber likes Japanese equities and thinks they have the potential for more upside. In particular, he likes Japanese financials such as Nomura and Mizuho Financial." - in Commodity Online

Related: Nomura Holdings, Inc. (ADR) (NYSE:NMR), Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), iShares MSCI Japan Index (ETF) (NYSE:EWJ)

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

US Treasuries Outlook: Bearish Long Term, May Rally Short Term

"Us Treasuries Outlook: Dr Marc Faber reiterates his bearish long-term view on US Treasuries, but notes that they are currently oversold and could be a good trade at this point. But this would only be a short-term bounce as rates have likely bottomed and higher inflation will erode future returns." - in Commodity Online

Related ETFs: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) , iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

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

The Only Emerging Market That Looks Attractive Right Now Is Vietnam.

Dr. Farber`s emerging markets outlook (from Commodity Online):

"While he is very bullish long-term on emerging markets, investors should avoid (or at least lighten up on) emerging market stocks right now. They should only be bought on corrections which would represent favorable entry levels. Overall, Faber thinks the SP 500 will outperform emerging markets in 2011. The only emerging market that looks attractive right now is Vietnam (VNM)."

Related ETFs: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), SPDR S&P 500 ETF (NYSE:SPY), iShares MSCI Brazil Index (ETF) (NYSE:EWZ), Market Vectors Vietnam ETF. (NYSE:VNM)

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

US Treasuries Are A Suicidal Investment

“This is a suicidal investment. Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.” - in Bloomberg

Related: 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.

The Next Correction In Stocks Is A Buying Opportunity.

"Faber believes a correction is imminent for the stock market as bullish sentiment (AAII sentiment) nears record levels and mutual fund cash positions remain very low. Furthermore, the latest upward move in stocks has occurred on declining volume, which is usually bearish from a technical point of view. The correction should occur in January. That being said, you should be buying into the correction as it represents a good buying opportunity. Faber prefers energy companies and speculative stocks such as home builders and even AIG. He goes on to say that the third year of a Presidential cycle is very good for speculative stocks versus traditional blue chip value plays." - in Commodity Online

Related stocks & ETFs: SPDR S&P 500 ETF (NYSE:SPY) , ProShares UltraShort S&P500 (ETF) (NYSE:SDS) , iShares Russell 2000 Index (ETF) (NYSE:IWM) , iShares Dow Jones US Home Const. (ETF) (NYSE:ITB), Lennar Corporation (NYSE:LEN) , American International Group, Inc. (NYSE:AIG)

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

Bullish On Energy Companies

"Faber likes energy companies since the long-term trend in oil is up, as supply fails to keep up with surging demand from emerging markets. Notes that emerging markets have surpassed the developed world in oil consumption and that this trend should keep demand strong for the foreseeable future. Faber likes the majors like Exxon Mobil (XOM), Hess (HES), and even Chesapeake Energy (CHK) as natural gas is too cheap on an inflation adjusted basis. Continuing the energy theme, coal and uranium stocks should be gradually accumulated on weakness as the world looks for alternative sources of reliable energy. Peabody Energy Corporation (BTU) on the coal side and Cameco Corporation (CCO) for uranium should outperform over the next few years." - in Commodity Online

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