Marc Faber Blog

The Was An Unbelievable Change In The Balance Of Demand For Raw Materials

2012-01-29T10:00:00.000-05:00

It has never happened before that a country's share of commodity consumption for aluminum, copper, zinc and nickel goes from 10 per cent in the year 2000 to 30 or 40 per cent in just 10 years. It's an unbelievable change in the balance of demand for raw materials.

"A consumer-driven economy is much less cyclical than a capital-spending economy. If the Chinese economy experiences a significant slowdown, it will have a huge impact on the demand for commodities. - in Edmonton Journal

Related, United States Oil Fund (USO), Powershares DB Base Metals Fund ETF (DBB), Freeport-McMoRan Copper & Gold (FCX)

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

High Inflation Rates Always Benefits People With A Lot Of Assets

2012-01-28T10:57:00.000-05:00

Every society that went through high inflation rates, whether it was the U.S. in the 1980s or Zimbabwe or Germany, it always benefits people with a lot of assets, and people without assets are hurt. So inequality increases.

That leads to a redistribution of wealth through taxation, or through social revolution it leads to poverty for everyone. - in this year's annual forecast dinner put on by the Edmonton CFA Society of financial analysts

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

Negative Interest Rates Forces People To Speculate

2012-01-27T11:55:00.000-05:00

With negative interest rates, your money in the bank doesn't give you any return, and it forces people to speculate, on things like real estate, equities and government bonds. That creates bubbles. And in a bubble, the majority of people lose money. - in Edmonton Journal

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

The Whole Financial System Will One Day Collapse

2012-01-26T09:09:00.000-05:00

So, relative to Government Bonds, equities are attractive and if you really think it throughand you are as bearish as I am and you think the whole financial sysytem will one day collapse...we don`t know if in 3 years, 5 years or 10 years...but one day there will be a reset and everybody will essentially start at new.

So you`re better off in equities than in governemnt bonds because a lot of government bonds will either default or they will have to print so much money that the purchasing power of money will depreciate very rapidly. - excerpt from a in Bloomberg TV interview

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

Relative Value In Equities Vs. Government Bonds

2012-01-25T09:39:00.000-05:00

I would not ay they (equities) are particularly attractive but look, I am in Switzerland at the moment, the 10 year government bond yields 0.7 percent and you can buy quality companies like Nestle or Novartis and so forth and they have a dividend of say, 3 percent. - transcript from a recent Bloomberg TV interview

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

Bloomberg Video Interview, January 2012

2012-01-24T09:11:00.000-05:00

Jan. 20 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for stocks versus bonds and his investment strategy. He speaks with Sara Eisen and Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

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

Upbeat On Singapore

2012-01-23T10:17:00.000-05:00

In Barron's annual roundtable issue recently Marc Faber was very upbeat on Singapore for its valuations and dividend yields. - in The Street.com

Related ETFs, iShares MSCI Singapore Index Fund (EWS) and MSCI Singapore Small Cap Index Fund (EWSS)

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

Equity Markets Already Discounted Some Very Bad News

2012-01-22T09:20:00.000-05:00

You could have strong asset markets. Commodities or metal prices could go up. In my view I think that equity markets have to a large extent already discounted some very bad news. - in CNBC

Related, SPDR S&P 500 Index ETF (SPY), IShares Emerging Markets ETF (EEM)

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

We Are Just Postponing The Problem

2012-01-21T09:17:00.000-05:00

If we look at U.S. government debt, it reached 1 trillion dollars in 1980 and in the year 2000 we were at 5 trillion dollars. So between 2000 and 2011 we’ve grown 3 times and the expansion of the debt will continue.

The day interest rates go up for whatever reason, the cost of financing will also become burdensome.

I’m negative about the outlook for the world because we are trying to solve the crisis created by excessive debt growth and excessive leverage with even more credit and leverage, which will just postpone the problem. - in CNBC

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

Market Update: My View Is Simply...Relax

2012-01-20T07:51:00.000-05:00

Latest CNBC video interview.

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

Relax. I Don’t Think That Equities Will Collapse.

2012-01-19T13:59:00.000-05:00

My view is simply: relax. I don’t think that equities will collapse. I think we have major support going back to August 2010 when the S&P was at 1010.

Just over a year later, the S&P briefly dropped to a low of 1074 on October 4, 2011... We have a lot of support around 1100, and if the S&P drops 200 points, I guarantee you the Fed will come in with QE3 and QE4 and so forth. - in CNBC

Related, SPDR S&P 500 Index (SPY), iShares Russell 2000 Index ETF (IWM), PowerShares QQQ Trust, Series 1 ETF (QQQ), iShares MSCI Emerging Markets Index ETF (EEM)

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

World War III Will Occur In The Next 5 Years

2012-01-19T09:51:00.000-05:00

World War III will occur in the next five years. That means the Middle East will blow up. New regimes there will be less Western-friendly. The West has also figured out it can't contain China, which is rising rapidly and will have more military and naval power in Southeast Asia. The only way for the West to contain China is to control the oil tap in the Middle East. - in Israel National News

Related, United States Oil Fund (USO), iShares MSCI Emerging Markets Index ETF (EEM)

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

The Market Is Overbought

2012-01-18T10:32:00.001-05:00

Related, SPDR S&P 500 Index ETF (SPY)

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

The Risks Of Countries Leaving The Euro

2012-01-18T07:42:00.000-05:00

If some country would say, "We’ve had enough, we’ll exit the euro", if Greece does that it's not going to be a disaster. But if Greece, Portugal, Spain, Italy do it, then it would have a huge impact on the derivatives market. - in CNBC

Related, Banco Santander (STD), National Bank Of Greece (NBG), Ishares Italy ETF (EWI), IShares Spain ETF (EWP)

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

The U.S. Should Be A Triple-B Or Junk Bond

2012-01-17T11:25:00.000-05:00

The U.S. should not be a triple-A-minus but a triple-B or junk bond when you really analyze the unfunded liabilities that will come due in future. - in CNBC.com

Related, ProShares UltraShort 20+ Year Treasuries ETF (TBT), iShares Barclays 20+ Yr Treasury Bond ETF (TLT)

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

CNBC Video: Most Europe, US Ratings Should Be Lower

2012-01-17T09:10:00.000-05:00

CNBC video interview, January 2012.

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

The Bubble Creators

2012-01-16T11:19:00.000-05:00

“The lifetime achievement of Greenspan and Bernanke is really that they created a bubble in everythin...everywhere.” - famous quote, in Big Goverment

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

Zimbabwe Case Study: Debt & Money Printing

2012-01-15T11:16:00.000-05:00

“If debt and money printing equaled prosperity then Zimbabwe would be the richest country.” - Dr. Marc Faber quoted in Big Government website

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

The Risks Of Money Printing

2012-01-14T11:11:00.000-05:00

If you print money like in Zimbabwe... the purchasing power of money goes down, and the standards of living go down, and eventually, you have a civil war. - famous quote, in Brainy Quote

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

Gold: We Are In A Correction Phase

2012-01-13T11:09:00.000-05:00

In the case of gold we had a 10-year bull market and we peaked out in dollar terms on September 6, 2011 at 1,921 dollars per ounce...and we are in a correction phase. - in NewsMax

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.

CNBC-TV18 Video Interview

2012-01-06T10:25:00.001-05:00

Latest video interview, CNBC-TV18.

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

The Danger Of Worsening Geopolitical And Economic Conditions

2012-01-05T11:31:00.000-05:00

Essentially what you could get in the world is worsening geopolitical and economic conditions.
Let's say Israel attacks Iran. It's a negative event, basically, but it could be countred by monetization everywhere in the world—in other words, liquidity injections. So stocks could go up while conditions worsen. This usually happens when you massively inflate the quantity of money.

But a mentally sound market in my opinion will only come about when the system has been cleaned and moved down after the financial crises of 2008. It's essentially just painting the building with fresh paint, but we haven't addressed the fundamental problem of the Western world, which is an over-indebted society. - in MoneyShow

Related, iShares MSCI Emerging Markets Index ETF (EEM), United States Oil Fund LP ETF (USO)

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

More QE If The S&P 500 Index Drops Another 10 Percent

2012-01-05T08:26:00.000-05:00

If the S&P 500 drops another 10 percent you can be sure that there will be more QE in the United States. So the markets would be supported by additional liquidity injections. - in Newsmax

Related ETFs, SPDR S&P 500 Index ETF (SPY)

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

Gold: We Are In A Correction Phase

2012-01-04T08:44:00.000-05:00

In the case of gold, as you know we had a 10-year bull market and we peaked out in dollar terms on September 6. 2011 at USD 1,921 per ounce at which stage the gold price had somewhat overshot on the upside and we are in a correction phase.

I happen to think that the correction phase is not completely over but recently sentiment on both silver and gold have turned very negative. We may have a trading rebound year -trading rally and then some further weakness into possibly February-March and then probably a major low. Then the question will be whether the precious metals rally again and will they exceed the peak of 2011 or not. - in MoneyControl

Related, Newmont Mining (NEM), Goldcorp (GG), 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.

Industrial Commodities Will Probably Disappoint

2012-01-04T06:51:00.000-05:00

We have to distinguish between precious metals and industrial commodities. My concern is that the Chinese economy is going to be weaker than is expected and that the demand for industrial commodities will probably disappoint.

Related, Powershares DB Base Metals Fund ETF (DBB)

(Source: MoneyControl)

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

To Make Forecasts About Free Markets Is Very Difficult. And Today You Have A Manipulated Market.

2012-01-03T09:51:00.000-05:00

To make forecasts about free markets is very difficult. The free market and that perfectly functioning market is a market where no market participant has dominated the market but today you have a manipulated market.

It is the governments which intervene continuously to influence the price of money, in other words interest rates and fiscal policies. - in MoneyControl

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

Looking At An Entry Point In Markets Like India Over The Next 6 To 9 Months

2012-01-03T09:48:00.000-05:00

That’s why when I read all the strategies that say - I think we should invest in the US, I say maybe that’s correct for the next three months or so but I would rather be looking at an entry point in markets like India over the next six to nine months. - in MoneyControl

Related, iShares MSCI Emerging Markets Index ETF (EEM), WisdomTree India Earnings Fund (ETF) (EPI)

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

Expecting Further Weakness In Emerging Markets (vs. US Stocks)

2012-01-02T11:06:00.000-05:00

What we will have in 2012 is initially maybe some maybe further weakness in emerging economies against the US market and then a major low in emerging stock markets, including, India. I was looking for India to bottom out the Sensex between 12,000 and 15,000 and we are getting there slowly. - in MoneyControl

Related, iShares MSCI Emerging Markets Index ETF (EEM)

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

Greece Should Have Defaulted: It Would Have Sent A Message

2011-12-28T08:13:00.002-05:00

"Greece should have defaulted; it would have sent a message that not all derivatives are equal because it depends on the counterparty." - in Lew Rockwell

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

The Banks Are Suffering Because They Are Too Leveraged

2011-12-27T10:20:00.000-05:00

The banks are in a very bad shape because they are so leveraged. US banks are also leveraged through the derivatives markets and so forth. - in BI

Related: Bank Of America (BAC), Citigroup (C), Wells Fargo (WFC), Banco Santander (STD), Deutsche Bank AG (USA) (DB), JPMorgan Chase & Co. (JPM)

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

European Crisis: Nobody Kept The Maastricht Treaty Promises

2011-12-27T08:45:00.000-05:00

When the European Union and the Eurozone were formed, in the Maastricht treaty it was stated that no country should have a fiscal deficit of more than 3 percent and the debt to Gross Domestic Product (GDP) ratio should not exceed 60 percent, but nobody kept that promise. - in Reuters

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

Assets Will Be Taxed More And More

2011-12-25T09:39:00.000-05:00

I also have a concern generally speaking about our capitalistic system. For sure people with assets, they will be taxed more heavily, that’s for sure. - in BER

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

Gold: A 30 to 40 Percent Correction Cannot Be Ruled Out

2011-12-24T10:36:00.000-05:00

A 30 percent correction or 40 percent correction cannot be ruled out, but as I maintain, again and again, I’m not going to go and sell my gold. - in BER

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

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

One Day There Will Be A Credit Collapse, But I Think We Aren’t Yet There

2011-12-23T09:36:00.000-05:00

One day there will be a credit collapse, but I think we aren’t yet there. Before it happens they’re going to print,” Faber speculates. “And when printing as it has done in the last 12 years in the U.S. leads to discontent populations, because when you print money then only a few players in the economy that benefit, not the majority of households. - in BER

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

Ultra Bearish On The Long Term Future

2011-12-22T12:41:00.000-05:00

"I am ultra bearish. I think most people will be lucky if they still have 50 percent of their money in 5 years time. You have to have diversification - some real estate in the countryside, some gold and some equities because if you think it through, say Germany 1900 to today, we had WWI, we had hyperinflation, WWII, cash holders and bondholders they lost everything 3 times, but if you owned equities you'd be ok. In equities in general you will not lose it all, it may not be a good investment, unless you put it all in one company and it goes bankrupt." - in ZeroHedge

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

Derivatives Market: One Day Will Cease To Exist

2011-12-21T10:06:00.001-05:00

"One day the whole derivatives market will cease to exist." - in Reuters

Related, CME Group Inc. (CME), IntercontinentalExchange, Inc. (ICE)

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

The View Of The Keynesian Economics

2011-12-20T10:56:00.002-05:00

Larry Summers recently said, the paradox of the situation is that we got into trouble because of too much borrowing and spending but we have to spend more and borrow more to get out of it. I disagree, but this is the view of the keynesian economics. - in Reuters

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

Close Correlation Between All Markets In The World

2011-12-19T09:08:00.000-05:00

There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets In Asia, we’re down between 15 percent and 25 percent in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world. I think this outperformance may go on for a while. - in Wall St Sheet Cheat

ETFs, iShares MSCI Emerging Markets Index ETF (EEM), SPDR S&P 500 ETF (SPY)

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

Reuters Video: I Am Not That Bearish On Equities

2011-12-18T10:21:00.000-05:00

Dr. Faber, talking to Reuters from the NYSE.

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

Financial Sense Interview (43 min)

2011-12-16T11:06:00.000-05:00

A 43 minutes long interview, Financial Sense Newshour.

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

Thoughts On The European Crisis

2011-12-15T14:23:00.000-05:00

"Unless there's an authority that can really punish (rule breakers) it's not going to work. I think the best thing to do is dissolve the EU. Let the markets sort this out. Let the countries default.

It's going to be painful, very painful. But rather than to intervene into something that is not going to work in the long run...intervention is the wrong medicine." - in Newsmax.com

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

Video: Dissolve The EU

2011-12-14T15:35:00.000-05:00

Marc Faber, editor of The Gloom Boom & Doom Report, is calling for the EU to dissolve:

“It’s going to be painful, very painful, but rather this than to again intervene into something that is not going to work in the long run.”

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

Commodities Vs. Equities

2011-12-13T10:20:00.000-05:00

I am also interested in commodities in the long run, but there will be times when equities are better than commodities and there will be times when you have to move back into commodities. - in Index Universe

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

Gold: A Major Correction Cannot Be Ruled Out

2011-12-12T11:13:00.000-05:00

A 30 percent correction or 40 percent correction cannot be ruled out, but as I maintain, again and again, I’m not going to go and sell my gold. - in ETF News

ETFs, SPDR Gold 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.

Gold: The Downside Exists If...

2011-12-12T09:11:00.000-05:00

In my view the downside exists if money printing by government is insufficient to revive or maintain credit growth at this level and you have a credit collapse.

One day there will be a credit collapse, but I think we aren’t yet there. Before it happens they’re going to print. - in etfdailynews.com

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.

The U.S. Will Continue To Outperform

2011-12-11T07:10:00.000-05:00

There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets. In Asia, we’re down between 15 percent and 25 percent in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world.

I think this outperformance may go on for a while. Some emerging markets could rebound more strongly than the U.S. because they are more oversold. Like India, the currency is down 18 percent since July and the market is down 22 percent. Currency adjusted, the market has been extremely weak and is oversold. It could rebound somewhat here, but forget about new highs. It’s not going to happen anytime soon. - in Bloomberg TV

ETFs, iShares MSCI Emerging Markets Index ETF (EEM), iShares MSCI Brazil Index ETF (EWZ), SPDR S&P 500 ETF (SPY), iShares Russell 2000 Index ETF (IWM)

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

I Have A Very Special Stock Tip For You

2011-12-10T07:08:00.000-05:00

I have a very special stock tip for you. The symbol is g-o-l-d. That is what I prefer to hold. Both the euro and the dollar are long-term undesirable currencies, especially given zero interest rates in the U.S.

Equities to some extent become like cash because they become a store of value compared to cash at a zero interest-rates. Paintings become a store of value, stamps become a store of value. - in Bloomberg TV

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.

Gloomy Outlook: What Do You Invest In?

2011-12-09T10:44:00.000-05:00

It’s actually quite gloomy but if you’re very gloomy what do you invest in: Treasuries, Italian bonds or commodities or equities? I happen to think U.S. equities are not terribly expensive, so relatively speaking to other assets, they may for a while actually do quite well. - in Bloomberg

Related, iShares Barclays 20+ Yr Treasury Bond ETF (TLT), iShares Russell 2000 Index ETF (IWM)

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

With Money Printing You Can Hide A Lot Of Things And You Can Postpone Problems

2011-12-09T07:07:00.000-05:00

“Postponing problems is not good news, but it is better news than if the whole eurozone falls apart. It gives some time to maybe find better solutions. I doubt they will be found, but with money printing you can hide a lot of things and you can postpone problems as we have seen in the U.S.” - in Bloomberg TV

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

The Market Is In Neutral Territory

2011-12-08T09:34:00.000-05:00

Right now, the market is in neutral territory. It was very oversold on October 4th when the S&P dropped to 1,074. Now around 1260, the upside in my opinion will be between 1,280 and 1,350 because there’s a lot of supply around that area. But if there is some good news coming out of Europe, and good news would simply mean postponing the problems for another few years with some kind of money printing operation, either by that ECB or IMF or EFSF, that lift stock prices higher. - in Bloomberg

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

Bloomberg Video: US Equities Are Not Terribly Expensive

2011-12-08T08:33:00.001-05:00

Dec. 7 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for equities and his investment strategy. Faber speaks with Lisa Murphy and Adam Johnson on Bloomberg Television's "Street Smart."

Related ETFs, SPDR S&P 500 ETF (SPY)

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

China: Easing May Not Mean That The Economy Will Do Particularly Well

2011-12-07T09:52:00.000-05:00

"But let me tell you something about easing. when Mr. Bernanke became fed chairman, the S&P 500 Index was at 1264, that was on february 1st, 2006. We're now at 1244. So the market is lower than it was at that time.

In the meantime, gold has gone to 1,746 USD. The easing may not mean that the economy will do particularly well." - in CNBC

Related, 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.

CNBC Video: Hard Landing In China?

2011-12-07T09:45:00.000-05:00

Latest CNBC video interview.

Related, iShares FTSE/Xinhua China 25 Index ETF (FXI), SSE Composite Index

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

Sensex: The Market Is Likely To Remain Highly Volatile

2011-12-06T12:04:00.000-05:00

The market is likely to remain highly volatile, and fail to make new highs. - in Bloomberg UTV

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

Obvious Slowdown In The Chinese Economy

2011-12-06T09:19:00.000-05:00

Basically the data can be manipulated, but in general I would say there`s an obvious slowdown in the chinese economy and as I pointed out in my report, I think there is a chance for a haed landing. - in CNBC

ETFs, 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.

There Is An Obvious Slowdown In The Chinese Economy

2011-12-05T10:37:00.000-05:00

CNBC video interview, December 2011.

Related ETFs, 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.

Many People Think Gold Is In A Bubble. That IS Not My Impression.

2011-12-04T07:12:00.000-05:00

Many people think that gold is in a bubble. That is not my impression.

Last week I was in Taiwan and later I was in South Korea. I gave a two conference presentations, and I asked the audience, "How many of you own gold?"

In Taiwan I think there was one participant that owned some gold and in Korea in a room with maybe one thousand people, not a single person owned gold.

ETfs, SPDR Gold Trust ETF (GLD)

Stocks, 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.

A Chinese Slowdown Impacts Everything

2011-12-03T06:55:00.000-05:00

If the Chinese economy grows at 10 percent, or 5 percent or no growth, it has a huge impact on iron ore, copper, nickel, anything. It will have on the global economy a devastating impact via the resource producers of the world, whether it's Brazil or Australia or the Middle East or Africa. - in CNBC

Tickers, iShares MSCI Brazil Index ETF (EWZ)

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

We Could Have A Hard Landing With No Growth At All

2011-12-02T06:55:00.000-05:00

The Chinese economy consists of many sectors and I think some sectors are already probably in a recession. I think growth will be much lower and it is possible that we could have a hard landing with no growth at all. - in CNBC

Related, 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.

Holiday Season: The American Consumer Went Shopping But...

2011-12-01T21:21:00.000-05:00

The American consumer went shopping but it’s not supported by income growth. If you look at the share of labor income or salary as a percent of GDP going down, what is happening is that people are again borrowing and diminishing their savings rate and I don’t think that is very sustainable. - in GuruFocus

Related, Consumer Discretionary SPDR ETF (XLY), Apple (AAPL), Nike (NKE)

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

The Chinese Economy Is Softer than Official Statistics Would Suggest

2011-12-01T08:17:00.000-05:00

In China, if the economy slows down meaningfully or if there is a crash, it will have a huge impact on the demand from China for raw materials, for commodities. It will impact Australia, Africa, the Middle-East and Latin America...

I’m sure the (chinese) economy is softer than official statistics would suggest and probably the government will start to print money at some point. So maybe stocks will rebound here because of money printing, but again, it won’t help the economy....

There’s a huge capital flight [from China], there’s no question about this. - in Business Insider

Tickers, iShares MSCI Australia Index Fund ETF (EWA), iShares FTSE/Xinhua China 25 Index ETF (FXI), iShares MSCI Brazil Index ETF (EWZ), United States Oil Fund (USO)

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

Video: Fox Business News Interview

2011-11-30T12:20:00.000-05:00

Latest Fox Business video interview.

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

Europe Will Monetize, It Will Postpone The Problem

2011-11-30T11:50:00.000-05:00

The big picture endgame in Europe is that they will also monetize like in the US and that will postpone the problem, but it will not solve it. - 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.

The Problem Of The Western World Is That There Is Too Much Debt And Too Many Unfunded Liabilities

2011-11-30T09:20:00.000-05:00

The optimism arises from some sort of a bailout and monetization. But if you look at the market, OK it’s up, but gold is also up and oil is up. Like in the US, we monetized time and again and it’s just postponing the problem. In the end, crisis will eventually happen. The problem of the Western world is that there is too much debt and too many unfunded liabilities. - 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.

Bloomberg Radio Interview

2011-11-29T09:54:00.001-05:00

Latest Bloomberg Radio interview, November 26.

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

You Have To Live With Volatility

2011-11-28T07:07:00.000-05:00

You’re better off by investing in equities than in government bonds and in cash for the next 10 years. You have to live with volatility. I’m not all that bearish about stocks.

Related, iPath S&P 500 VIX Short-Term Futures ETN (VXX), SPDR S&P 500 ETF (SPY), iShares MSCI Hong Kong Index Fund ETF (EWH)

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

Korean Stock Market May Slide Further

2011-11-23T08:07:00.000-05:00

Dr. Faber said at a conference held in Seoul Tuesday that China will continue slow economic growth and eventually affect the Korean stock market. Korea stocks already peaked last May and they could slide to the mark of 1,200 or 1,400 points.

Related, iShares MSCI South Korea Index Fund ETF (EWY)

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

Zurich Is A Perfect Place

2011-11-23T00:10:00.000-05:00

Zurich is the most beautiful and pleasant city in the world. If the weather is fine, in the summer it`s a lovely place. It has an old city, it has a lake, it has the proximity of the mountains...you can do sports... It`s relatively small, it`s cosy, you can walk from A to B, you don`t need to take the subway. Zurich is a perfect place. - in a University Of Zurich video

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

If I Could Go Back In Life I Would Study Economics Again

2011-11-22T10:06:00.000-05:00

If I could go back in life I would definitely study economics again. What I have noticed in life is, if you are a lawyer or if you are a medical person, you don`t have the geographical freedom as I had in economics.

I could practice economics anywhere in the world, in Latin America, in the Middle East, in Asia...and I could travel a lot and see the entire world.

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

Revisiting Zurich

2011-11-22T06:54:00.000-05:00

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

China`s Inflation: The Truth Is Somewhere Between 12 Percent And 15 Percent

2011-11-21T07:48:00.000-05:00

Don’t believe China’s consumer price index stands only at 5 percent. The truth is somewhere between 12 percent and 15 percent...

The real-estate bubble is so evident that Chinese property shares are very weak as the volume of real-estate transactions goes down and prices fall. - in Taipei Times

Tickers, iShares FTSE/Xinhua China 25 Index ETF (FXI), PowerShares Gld Drg Haltr USX China ETF (PGJ)

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

China Invented Paper, They Know How To Print

2011-11-18T10:22:00.000-05:00

Chinese invented paper. They know how to print money. - BeaconEquity

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

The Middle And Lower Income Classes Are Being Hurt

2011-11-17T11:06:00.000-05:00

Some people will benefit from money printing that deflates the purchasing power of currency ... but the middle and lower income classes are being hurt. - in a speech sponsored by Chinatrust Financial Holding in Taipei

Related ETFs, iShares Silver Trust ETF (SLV), 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.

QE3 Is Just A Matter Of Time

2011-11-17T09:05:00.000-05:00

A third wave of quantitative easing by the US Federal Reserve is just a matter of time. - at an event sponsored by Chinatrust Financial Holding in Taipei

Related ETFs, SPDR S&P 500 ETF (SPY), iShares MSCI Emerging Markets Index ETF (EEM), PowerShares QQQ Trust ETF (QQQ)

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

Markets Are Very Volatile

2011-11-16T06:43:00.000-05:00

Markets are very volatile partly because interest rates are at zero percent...and in real terms, negative which essentially stimulates speculation. In addition, we have high frequency trading that lead to very wild swings in the markets. - in Bloomberg

Related ETFs, iPath S&P 500 VIX Short-Term Futures ETN (VXX)

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

The ECB Will Monetize, Problems Will Be Postponed

2011-11-15T11:59:00.000-05:00

Sooner or later, the europeans, especially the ECB will have to monetize and problems will be postponed for a while. - in Bloomberg

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

It`s Going To Be Very Difficult For Markets To Make A New High

2011-11-15T08:24:00.000-05:00

I think it`s going to be very difficult for markets to make a new high above (in the case of the S&P 500 Index), the May 2 high at 1370. I think there is a lot of supply between this level, 1260 and 1350, so I doubt we will see new highs.

But that does not mean the market cannot rally another 5 percent or so.

ETFs, SPDR S&P 500 ETF (SPY), ProShares UltraShort S&P500 ETF (SDS)

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

Bloomberg Video Interview, November 14

2011-11-14T06:52:00.000-05:00

Bloomberg video interview, November 14.

Nov. 14 (Bloomberg) - Marc Faber, publisher of the Gloom, Boom and Doom Report," talks about the outlook for global stock markets. Faber also discusses Europe's sovereign debt crisis, the U.S. economy and Federal Reserve monetary policy. He speaks from Ho Chi Minh City, Vietnam, with Susan Li on Bloomberg Television's "First Up."(Source: Bloomberg)

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

Japan Could Be Vulnerable As Well

2011-11-13T09:32:00.000-05:00

I believe that the next country that is very vulnerable would be Japan or the United States. Also in Europe within the EU we have the so-called PIIGS, in other words, Portugal, Italy, Ireland, Greece and Spain. These countries are quite vulnerable. - in Yahoo Finance

Ticker, iShares MSCI Japan Index ETF (EWJ)

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

Sovereign Debt Defaults Have Been Very Common Through Out History

2011-11-12T09:01:00.000-05:00

Sovereign debt defaults through out history have been very common for centuries, sovereign states have defaulted on their obligations. Usually it happens bacause they borrowed too much and just can`t pay and then they inflate, and when things don`t turn out well then they default. - in Yahoo Finance Tech Ticker

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

The Missing Chapter - A Personal View of Russia - Twenty Years After & The Inflation Pulse Returns and Implications on the Fall Melt-Up of 2011

2011-11-11T08:58:00.001-05:00

Marc Faber has just released his November 2011 market commentary on his gloomboomdoom.com website. This month report is entitled "The Strongest Principle of Economic Development Lies in Human Choices".

There are 2 attachments to the monthly market commentary (MMC):

The Missing Chapter - A Personal View of Russia - Twenty Years After by Eric Kraus, Managing Director of Anyatta Capital

The Inflation Pulse Returns and Implications on the Fall Melt-Up of 2011 by Michael A. Gayed, Chief Investment Strategist at Pension Partners, LLC

The first attachment can be accessed at "The Missing Chapter - A Personal View of Russia - Twenty Years After" and you can download the PDF at the end of the linked article. In this chapter, Kraus discusses about Russia before the 1997 collapse and the corruption that took place at the time and how it has now improved and that Moscow feels the freest place in Europe.

The second attachment refers to "Inflation, Deflation And The Fall Melt-Up of 2011" article on Seeking Alpha where Mr. Gayed explains how to navigate the markets which consistently changing market sentiments from deflation to inflation fear and vice-versa. He uses the price ratio of the Treasury Inflation Protected Bond ETF (TIP) relative to nominal 7-10 Year Treasuries (IEF) to anticipate sentiment. - in ETF Investment Ideas website

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

Sovereign Debt: The Next Crisis

2011-11-10T10:32:00.002-05:00

Latest video market update in Yahoo Finance.

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

Rates Will Stay Negative In Real Terms

2011-11-09T09:47:00.000-05:00

Marc Faber, editor of the Gloom Boom & Doom Report, believes the Fed will keep rates near zero even longer than 2013. In his November commentary, he points to the opinion of Chicago Federal Reserve Bank President Charles Evans, who wants the Fed to “commit itself to keep short-term rates at zero until the unemployment rate falls below 7 percent or the outlook for inflation over the medium term goes above 3 percent.” If Evans has his way, Dr. Faber extrapolates that rates could “stay at zero for five or even 10 years (and negative in real terms).” - in DailyMarkets.com

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

Diversify, Diversify

2011-11-08T11:30:00.000-05:00

The current environment is not one where you can sleep well, unless you are well diversified. - in Taking Stock, Bloomberg

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

Faber On Bloomberg: Audio Interview

2011-11-08T09:19:00.000-05:00

Listen to the audio interview HERE, "Faber Greece, Other Countries Probably Bankrupt."

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

I Am A Great Optimist In Life

2011-11-07T07:49:00.001-05:00

"I am a great optimist in life; otherwise I would commit suicide in view of the kind of governments we have nowadays." - in CNBC

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

The End Crisis: Sovereigns Going Bankrupt

2011-11-06T03:40:00.000-05:00

The end crisis will be postponed until the sovereigns go bankrupt. - in CNBC, Oct 27

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

The Chinese Don’t Issue Shares To “Enrich Foreigners” But To “Impoverish Foreigners.”

2011-11-05T07:43:00.000-04:00

"China’s rise has been fueled since 2007 by a bubble in credit there. Faber was vague on when it would burst — now or in three years? — but it’s unsustainable. What’s more, foreigners should beware investing in China’s ongoing construction boom.

Dr. Faber pointed to virtually all U.S. canal and railroad companies going bust in the 19th century, ruining many a foreign investor but leaving North America with an enviable set of infrastructure. He said the Chinese don’t issue shares in companies to “enrich foreigners” but to “impoverish foreigners.” If a foreigner wants to make money in China, Faber said, they should go work there." - in WSJ Blog

Related: 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.

Super Bulls And Super Bears Will Be Disappointed

2011-11-04T10:49:00.000-04:00

I think that the super bulls and super bears will be disappointed that we're in a trading range of 900 on the S&P 500 Index (SPDR S&P 500 ETF SPY) and 1350, something like this. i don't think i don't think we will make a new high above the may 2nd high on the S&P 500 Index (SPDR S&P 500 ETF SPY). - in CNBC

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

Governments Are No Longer Representing The Interest Of The Communities

2011-11-03T15:01:00.000-04:00

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

Rising Living Standards In the Emerging World Will Keep Commodity Prices Well Bid

2011-11-03T10:45:00.001-04:00

Rising living standards in the emerging world will support demand for commodities — and keep us paying through the nose. Faber observes that if you double someone’s income from $1 million to $2 million, their spending on raw materials “except maybe cocaine” doesn’t rise. Not so for someone on a few thousand dollars a year. They buy cars and the other trappings of middle-class living. - in WSJ Blog, covering World Commodities Week in London

Tickers, United States Oil Fund (USO), Powershares DB Base Metals Fund ETF (DBB)

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

Economic And Stock Market Cycles

2011-11-02T14:26:00.000-04:00

Dr. Faber agrees that economic and stock market cycles have moved in tandem in the past. But he makes a case for them not being so closely linked in the future. The reason being the concentration of wealth, and liquidity if you will, in the hands of a few. Faber argues that despite poor economic fundamentals in the developed markets, equity and other asset classes may not suffer too much. The premise of this argument is that since the 1980s, wealth inequity has increased significantly. According to him, currently the top 1% percent of households in developed economies earns 20% of all incomes. Also they own 33.4% of the total net worth of these economies. Hence, even though consumer sentiment is controlled by 80% of the population, just 1% of the population controls the money supply and fiscal deficits. The latter in turn largely determine the value of assets and exchange rates. With economic uncertainties like lower income growth and unemployment not impacting the moneyed class too much going forward, Faber believes that equity investing may remain unaffected.

While the logic of Faber's comment cannot be sidelined, we believe that his observation about economy and markets getting disconnected is a theoretical misnomer. For even the 1% population does get affected by the poor sentiment amongst 80% of the population. And when that happens, money supply deserts risky asset classes likes stocks and chases safe returns. At such times most rich households too prefer to maintain their wealth in cash or safe and liquid assets. Hence income inequality may be a reality in developed and developing markets alike. But neither can remain insulated from the downsides of economic cycles by the virtue of wealth concentration. - in Equity Master

ETFs: iShares MSCI Emerging Markets Index ETF (EEM), SPDR S&P 500 ETF (SPY)

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

The Situation Is So Bad That Governments Can`t Make It Worse

2011-11-02T10:11:00.000-04:00

Economic policy makers cannot solve problems by using the same kind of thinking they used when they created them. Never in the history of the world has there been a situation so bad that the government can’t make it worse! - in CNBC

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

Central Banks Can Postpone The End Game For 5 Or 10 Years

2011-11-01T11:38:00.001-04:00

CNBC video interview, October 26th

Video topics: Central Bank policy, inflation, debt, student loans;

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

Inflation Accounts For Most Of The Supposed Growth In The U.S.

2011-11-01T09:33:00.000-04:00

The inflation in the system is accounting for most of the supposed "growth" in the US economy. - in Bloomberg

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

The Surging U.S. Federal Debt

2011-11-01T08:31:00.000-04:00

It took the United States 200 years to get to a federal debt of 1 trillion dollars in 1980, another six years to get to 2 trillion dollars, and now it’s north of $15 trillion. - in WSJ Blog

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

Asset Allocation: Gold, Real Estate, Stocks & Cash

2011-10-31T14:00:00.000-04:00

The best thing an individual investor can do right now is to hold 25 percent of his assets in equities, 25 percent in real estate, 25 percent in gold, and 25 percent in cash. If equities, real estate, or gold drop another 10 to 20 percent, put more cash in. - in BullionVault

ETFs, SPDR Gold Trust ETF (GLD), SPDR S&P 500 ETF (SPY)

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

No One Forced Banks And Insurers To Buy Greek Bonds

2011-10-31T08:14:00.000-04:00

No one forced banks and insurers to buy Greek bonds. The crisis we have today won’t be fixed and the problems won’t be solved, they will be delayed. And then one day, we’ll see the final crisis, where numerous governments will go bankrupt. - in Bloomberg

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

I Am A Great Optimist In Life

2011-10-30T09:33:00.000-04:00

Well, I think I'm very constructive and I'm a great optimist in life, otherwise I would commit suicide in view of the kinds of governments we have now-a-days. Because, for sure, they will take wealth away from the well-to-do people one way or the other, and from the middle class, they will take it away through inflating the economy and lowering the standard of living. - in Beacon Equity

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

The Governments, They’re Going To F— You All, That’s For Sure

2011-10-29T09:31:00.000-04:00

You should not only diversify your asset holdings, but also diversify where you hold those assets, in case they’re seized by politicians as the welfare state enters its death throes. The governments, they’re going to f— you all, that’s for sure. - in CNBC

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