Reuter Video Interview: Global Economy & markets

Latest video interview, Reuters.

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

Gold Correction: Watching 1,500/oz Support

'If $1,500/oz support doesn't hold, Gold will bottom out at $1,000 - $1,200' - in CNBC Europe

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

The Journey Along The Investment Road Is An Arduous One

I seldom go to see doctors but when I do, I like to be ideally with a doctor who is a friend, understands my unhealthy lifestyle and in whose judgement I can trust. I have no doubt that trusting a doctor will significantly accelerate the healing process.

In the world of investments people’s investment results would be better if instead of trading online day and night they would have a close relationship with a capable and honest financial planner who could provide them with advice and occasionally with a second opinion. What really amazes me is that people want to see the best and most expensive doctors (ok, the government or the insurance company pays) , buy the highest quality products, but will use the cheapest possible way to transact and invest their funds.

The journey along the investment road is an arduous one and it is very important that you have a good companion who comforts you when “bad luck” strikes and who is at the same time a reliable guide that helps you find the way. Less affluent investors will of course argue that the access to top financial advisors is only open to high-net- worth individuals. That is unfortunately the case and I wished I could change that because small investors need more help than already very well to do people. - an excerpt of the GBD Report

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

China: Slowdown Or Crash?

Basically I look at China this way: between 2000 and 2007 the chinese economy grew and credit expanded at about the same rate as the GDP, slightly higher but not excessively. But after the crisis of 2008, we had essentially a credit driven boom in China and whenever you have excessive credit growth and artificially low interest rates (because inflation in China is much bigger than what the government is publishing) you have symptoms of bubbles developing...clearly in the real estate market where there were some over investments.

There fore, I think a slowdown in China is coming and possibly in some sectors of the economy, a crash.

Related stocks and ETFs: iShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI), PowerShares Gld Drg Haltr USX China ETF (NYSE:PGJ), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), China Mobile Ltd. ADR (NYSE:CHL), Aluminum Corp. of China Limited ADR (NYSE:ACH), China Life Insurance Company Ltd. ADR (NYSE:LFC)

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

Reuters Video: Some Sectors Of China's Economy May Crash

You can watch the latest video interview with Reuters here: "Some sectors of China's economy may crash"

Related stocks and ETFs: iShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI), PowerShares Gld Drg Haltr USX China ETF (NYSE:PGJ), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), China Mobile Ltd. ADR (NYSE:CHL), Aluminum Corp. of China Limited ADR (NYSE:ACH), China Life Insurance Company Ltd. ADR (NYSE:LFC)

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

Gold And Silver Will Be Moving To Stronger Hands

In the case of gold and silver, I think increasingly they will be perceived as cash and increasingly they will be moving to stronger hands.

Tickers: Ishares Silver ETF (SLV), Hecla Mining (HL), SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG);

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

If You Look At The Environment We Are In, There Are A Lot Of Similarities With 2008

If you look at the environment we are in, there are a lot of similarities with 2008 where basically the financing for the exploration companies dried up, the global liquidity shrank, asset prices collapsed but the US dollar and US government bonds were strong. And we have a repeat here of that situation and my sense is that industrial commodities are vulnerable and still remain vulnerable. - in CNBC

Tickers: Materials SPDR ETF (XLB), iShares Lehman 7-10 Year Treasury Bonds ETF (IEF)

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

CNBC Video: Squawk Box

Topics: Mining companies, US bonds, US Dollar, asset markets;

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

CNBC Video Interview: Market Update

Latest market update from Dr. Marc Faber on CNBC.

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

Equity Markets & Gold Are Very Oversold

Both equity markets and gold markets have become very oversold, and I think a rebound is occurring. Following this rebound, which I expect to get underway this week, there will be a longer slowdown. - in CNBC

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

Gold: If 1,500 Does Not Hold, We Can Bottom At 1,100 - 1,200

We overshot on the upside when we went over 1,900 dollars/ ounce. We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200. - in CNBC

Related: SPDR GOld Trust ETF (GLd), Newmont Mining (NEM), Barrick Gold (ABX)

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

Investing Lessons From A Pianist

I urge my readers to remember the words of Pianist Artur Schnabel: “The notes I handle no better than many pianists. But the pauses between the notes – ah, that is where the art resides”.

Similarly, most investors are about equally good (or bad) at selecting stocks and other investments as well as at “timing” the market. However, some investors are more responsible and disciplined in their approach and that is where the superior performance comes from. As Dietrich Bonhoeffer noted, “Action springs not from thought, but from readiness for responsibility.”

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

I Am Not Selling My Gold

I am not selling my gold because in the long run, the Federal Reserve will print money. As soon as markets in the world are down another 10-20%, as soon as asset prices go down and the economy is weak, everybody will applaud the Federal Reserve if they print money. - in Economic Times

Related: SPDR Gold ETF (GLD)

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

Is China A Bubble?

"If we define a bubble as excessive credit growth and artificially low interest rate, then China has had a gigantic bubble. Now, will it collapse or will it just slow down, that is a different issue but some sectors of the economy will collapse. - in Economic Times

Ticker, iShares FTSE/Xinhua China 25 Index ETF (FXI)

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

I Am Applauding The Federal Reserve For The First Time In 12 Years

I am for the first time in 12 years applauding the Federal Reserve. They did the right thing but the stock market reacted on the downside because there was not a QE3 type of announcement. - in Economic Times

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

Obama Will Do Anything To Get Reelected

Mr. Obama wants to get reelected. We are not talking about economics here. He will do anything to get the vote; to get votes, you have to hand out things. - in Fox Business News

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

Fox Business News: Best Fed Reserve Decision In A Long Time

Marc Faber talks to Fox Business News, live from Hong Kong

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

Greece, Inflation & Insurance Premiums

The Greeks cannot pay, but lots of people in the U.S. can’t pay either; most banks worldwide are bankrupt. The world is cold. There is not a lot of inflationary pressure on consumer goods but energy prices are up, food prices are up. With zero interest rate, you know what will happen to your insurance premiums? They will go up dramatically. - in The Wall Street Pit

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

The Dynamics Of Commodities Bull & Bear Markets

Bull markets in commodities should not distract us from the fact that spikes in prices are followed by collapsing prices. This observation has nothing to do with being a “commodity bull” or a “commodity bear” but with historical facts.

When commodity prices are low, no new production capacities are built and eventually shortages drive prices higher. When commodity prices are high, new production capacities come on stream and alternate ways of production are invented which subsequently drive down prices. Now for some commodities, the supply response is relatively short. If there is a soybean shortage which causes prices to increase, farmers can respond within one or two planting season. That is why agricultural commodities fluctuate widely within brief periods.

The (is) fact that whereas for agricultural prices the supply response is relatively short, for industrial commodities it is very long. Say there is a shortage of copper! It will take a very long time (12 – 20 years) until the mining industry will open new mines. Therefore, the industrial commodity cycle will tend to last longer than the agricultural cycle. However I would like to emphasize that at some point, prices for industrial commodities will also collapse and this irrespective of how much money our friends at central banks around the world will print. - in GBD Report, Feb 2011

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

Downside Volatility Offers Opportunity To Acquire Assets At Distressed Prices

I should add that for the investor, who has a well-diversified portfolio of assets and has high cash flow (personal income and income from investments), downside volatility offers an opportunity to acquire assets at distressed prices or add to his positions at a more favorable entry point.

However, for the investor without any free cash flow, downside volatility can be extremely problematic because the option to increase positions at distressed prices is not available to him.

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

The Global Economy Is Slowing Significantly

As far as commodities are concerned, I think the global economy is slowing significantly and the demand for industrial commodities will not grow that fast.

Related: iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), Powershares DB Base Metals Fund (ETF) (NYSE:DBB)

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

Asset Allocation: Real Estate, Gold, Stocks & Cash

I have 25 per cent in real estate and real estate-related equities here in Asia, 25 per cent in gold, 25 per cent in stocks and 25 per cent in cash. - in Business Standard

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

Gold Is Not Only An Inflation Hedge

I think it is important for investors to understand the role of gold as an insurance against a systemic failure and not necessarily as a hedge against inflation. I should add that I own gold for both reasons, believing that it will perform well in both an inflationary and deflationary environment. In addition, I am not selling any gold but traders should realise the gold price is extremely overbought and that it could easily drop toward the 200-day moving average – that is, between $1,500 and $1,600 (not a prediction). As I just said, I am not selling my gold because I expect much higher prices in future. But, near term, both T-bonds and gold appear vulnerable to a more serious correction. - in Beacon Equity

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

I Could Make The Case That Gold Is Cheaper Now Than When It Was At 300 Dollars Per Ounce

In fact, I could make an analysis to show that the price of gold today is probably cheaper than when it was 300 dollars per ounce based on the increase in government debt, based on the increase in monetary base in the United States and based on the expansion of wealth in Asia. - in Beacon Equity

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

Why Were Gold And Bonds Moving Together?

Gold bottomed out in late January and peaked out on August 23. My first thought was that the closely correlated move between treasury bonds (T-bonds) and gold was illogical. Then, I considered that investors panicked into T-bonds because of a scare that the financial system would implode (flight to safety). For the same reasons, investors rushed into gold. In other words, the gold buyers were not buying gold because of inflation fears but because they were afraid of a systemic failure.

Topics: SPDR Gold ETF (GLD), 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.

There Is Room For Gold To Appreciate Further

I have been writing every month that people should accumulate gold. Yes, there is more room for gold to appreciate further. Most people do not own gold. Most people think gold prices are very high. Today, the gold price is cheaper than in the 1980s when it was around 400 dollars an ounce, considering the increase in global monetary base and the US money printing.

Tickers: SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG)

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

Some Kind Of A Silent QE3 Is Already Underway

This time, I think they may not make an official announcement. But some kind of a silent QE3 is already underway, considering that M1 growth (cash and near-cash deposits) has accelerated to the fastest expansion in 35 years. I have no idea what the Keynesian interventionists, led by Bernanke, Krugman & Co will come up with next, except that they will further pursue their erroneous economic policies. The only question is how far they will move and what the impact might be on asset markets. - in Business Standard

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

My Asset Allocation

I have 25 per cent in real estate and real estate-related equities here in Asia, 25 per cent in gold, 25 per cent in stocks and 25 per cent in cash. - in Business Standard

Related: SPDR Gold Trust ETF (GLD)

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

Indian Markets Will Correct Further

I think the Indian markets will not go lower to those 2008 levels, but would go lower from the current levels to, may be, 12,000-15,000 levels. From their low in 2009, the Indian markets till recently rose to 21,000, which is almost 100 per cent returns. I do not call this a bear market rally, but a bull market. We now have had the beginning of a bear market.

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

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

The Next Crisis Is Going To Be Worse Than The One In 2008

We never really had a recovery in the Western world. The stock markets went up because of the money printing and support in 2009. My view is that they can probably muddle through for another two-three years by piling up the fiscal deficit or printing more money. I do not know when it will happen in 2012 or in 2018, but the next crisis will be worse than the one in 2008. - in Business Standard

Tickers: SPDR S&P 500 ETF (NYSE:SPY) ProShares UltraShort S&P500 (ETF), (NYSE:SDS) ProShares UltraShort QQQ (ETF) (NYSE:QID), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ);

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

Total Credit As A Percentage Of The Economy: Historic Perspective

When the US went into World War II, total credit as a percentage of the economy was 140%. We are now, without the unfunded liabilities, at 279% and with the unfunded liabilities, probably around 800%. - in Business Insider

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

Gold Should Be Worth 6,000 Or 10,000 USD According To Some Statistics

According to some statistics the gold price today should be worth between $6,000 per ounce and $10,000 per ounce. - in Yahoo Finance

Related: SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG)

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

9/11 Expanded The Willingness Of Policymakers To Print Money

9/11 expanded the willingness of policymakers in the U.S. to print money. - in CBS Marketwatch

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

Obama`s Job Plan Is A Complete Joke

The package is another complete failure of Keynesian economics and corrupt interventions.

This all amid talk of deficit reductions. The package is a complete joke. - in CNBC

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

I Am Sure Money Printing Will Come Back

Yes, I’m sure money printing will come back. We will not have an official QE3 announced immediately, but I think that if the stock market weakens further, they (central planners) will take some additional printing measures along with Europe for sure. - in Liberty CPM

Topics: SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index (SPY)

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

The U.S. Is Much Worse Off Than Before 9/11

There’s no question that today, 10 years after 9/11, the entire financial structure of the U.S. is much worse than it was in 2000 and 2001. Household credit mortgage debt, government debt, unfunded liabilities, less people employed and the population is up. The U.S. is much worse off than before 9/11.

For that we have to thank expansionary monetary policies. The Fed cut interest rates in January 2001, but because of 9/11, they cut it further to 1% and left it at 1% until June 2004. The recovery in the U.S. began in November 2001. Interest rates were far too low, far too long. And even after June 2004, credit growth increased. 9/11 gave them ammunition to keep an expansionary monetary policy that led to excessive leverage, and excessive credit growth that led to the housing bubble of 2007/2008.

What has also changed after 9/11 is that geopolitical considerations, while not the most important issue today in the minds of most investors, at least have become more important. The engagement of America, particularly less so in Iraq but moreso in Afghanistan and Pakistan, has led to enormous instability in that region. Plus the fact that the cost to the U.S. economy of the Iraq invasion and the Afghani expedition must run between $1 and $2 trillion.

The second consequence of the war is the U.S. dollar is weak. Nobody can tell me the weak dollar is desirable. It’s a decline of the living standards of Americans relative to other countries in the world. The U.S., instead of spending on the war, could have used that money to rebuild crumbling infrastructure.

Without the war effort, I suppose that there might have been less expansionary monetary policies and slower increases in commodity prices. In the second half of 2007 and first half of 2008, the global economy was slowing and in recession, but because of expansionary monetary policies commodity prices went ballistic and oil rose. It wasn’t because of demand going up; it was because of artificially low interest rates. 9/11 expanded the willingness of policymakers in the U.S. to print money. - in CBS Marketwatch

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

I Don`t Think Gold Is In A Bubble

“I don’t think that gold is in a bubble. When you buy gold, it’s an insurance against systematic failure and problems in the financial markets. - in a phone interview yesterday from Chiang Mai, Thailand

Related: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), Anglo Gold (AU), Kinross Gold (KGC)

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

Rigged Markets, Volatility And Keynesian Economics

Many things don`t make perfect sense because markets are rigged. I am not saying they are rigged by purpose, but artificially low interest rates lead to very high economic and financial volatility and with the intervention, the keynesian economics, you basically have more and more regulation and more patchwork that creates again volatility in the market. - in Bloomberg

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

Gold & Treasuries

It would not surprise me to see gold down to 1,600 dollars because recently there has been probably a bit too much enthusiasm. At the same time, what is interesting is that gold in this latest bull market started to rally at the end of June at 1,600 and it went to 1,900. At the same time, treasuries also started to rally. (...) This is in a way very illogical because you would want to be in bonds in a highly deflationary environment, and you would rather want to be in gold in an environment where you think money printing will drive up prices. - in Bloomberg Radio

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

Gold: 6 Month Outlook

For the next 6 months gold will rather decline than go up. - in Bloomberg Radio

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

Bloomberg Interview: The European Crisis

Listen to the latest Bloomberg Radio interview here: Marc Faber Says EU Should Have Let Greece Fail

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