Friday, August 18, 2017

Volatility will pick up Massively, says Marc Faber

Volatility will pick up ‘massively’, says Marc Faber from CNBC.

Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report," talks about the outlook and volatility for markets.

Tuesday, August 15, 2017

Why Marc Faber is overweight EMs

Why Marc Faber is overweight EMs from CNBC.

Marc Faber, editor of The Gloom, Boom & Doom Report, says President Trump's policies have actually been good for foreign stock markets.

Saturday, August 12, 2017

Trader takes on Marc Faber

Trader takes on Marc Faber from CNBC.

Scott Nations and Marc Faber, editor of the Boom, Gloom and Doom Report square off on their views of the market.

Wednesday, August 9, 2017

Marc Faber: There's no all-clear signal in the markets



Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, discusses his perpetually bearish outlook for markets.

- Source, CNBC

Thursday, August 3, 2017

Marc Faber is Warning - Be Cautious On Industrial Commodities

Commenting on the banking sector, Faber said that he is positive on financial stocks such as banks and particularly insurance companies. They might be going through near-term pain but eventually they will clean up their balance sheet.

The long-term potential for banking as a sector is huge but equally we have to understand there are huge technological changes underway in the world, explains Faber. Financial institutions who move along with technology will do well while other will not do that well.

Financial stocks which have underperformed for the year will outperform. Secondly, Feber said that in his asset allocation, I always have 25 percent in real estate.

“I think some real estate in India may not be fully attractive because it may be fully priced. But, on the other hand, there is still plenty of real estate which will now move up substantially in value,” said Faber.

Commodities

Commenting on gold, Faber said that the price of the yellow metal went up by 8 percent last year against the US Dollar. It saw strong outperformance. This year, the gold is already up 7 percent against the USD whereby Dollar has lost 7 percent against the euro. In euro terms we are even.

“Some agricultural commodities are trading at the lowest point and could still bounce back in the second half. But, given the slowdown in growth around the world except India, I would be little bit cautious on industrial commodities,” he said.

- Source, Money Control


Monday, July 31, 2017

Acche din over for the Indian market? Marc Faber sees slight correction in second half

The Indian market rallied as much as 22 percent so far in 2017 in dollar terms but it is unlikely that we could see a similar performance in the second half of 2017, Marc Faber, editor of The Gloom, Boom & Doom Report said in an exclusive interview with CNBC-TV18.

“In a world where we have artificially low-interest rates, the market rallied a little bit ahead of itself and could witness slight correction. But, long term story still looks promising,” he said.

He further added that equity markets around the world in 2017 saw a strong performance of 17-22 percent in Asian markets including India as well as in Europe.

“Hence, the second half would be difficult and I would not be surprised to see US markets going down or the leadership changing. So far the leadership in US markets is held by bellwethers such as Apple, Netflix, Facebook, Amazon, Google etc. and that is about to change.”


This pattern will also apply to Indian markets where the leadership will change, but the only difference is that the leadership would shift from index to stock specific names.

“Going into the second half, India will be more of a stock pickers market and not an index market,” said Faber. There could be some volatility in the short term, but, for the long term, the story looks good.

In the short term, the Indian market could correct here but given favourable fundamentals in long term, Faber is not overly bearish. But, as I said – “If I have to invest for 10 years and choose between Indian and US, I would chose India because it can outperform the US,” said Faber.

- Source, Money Control

Thursday, July 27, 2017

Why Marc Faber is overweight EMs


Marc Faber, editor of The Gloom, Boom & Doom Report, says President Trump's policies have actually been good for foreign stock markets.

- Source, CNBC

Sunday, July 23, 2017

Marc Faber: Still bearish

Marc Faber, investor and author of the Gloom, Boom & Doom Report, remains very bearish. He reckons we could be heading for “an epic decline in asset prices… after eight-plus years of bull markets”, which have left valuations at historically high levels. Another warning sign is that recent gains in most major indices, especially the Nasdaq in the US, have been “driven by a small number of stocks”.

The market’s dependence on the strong performance of a few stars is particularly worrying given that many well-known technology companies, including Amazon, Netflix and Apple, experienced hefty falls at the start of this month. Even if this was just a “correction”, there has clearly been a jump in volatility. One way or another, “when things finally start going down, they’ll go down a lot”, says Faber.

He is also worried about political risk. Over the past 30 years “an increasing share of wealth has gone to big corporations and wealthy individuals”. This will lead to demands for either “a big hike in taxes” or “policies that will lead to a big asset-price deflation”. The problem is compounded by the fact that both governments and companies are hiding their true debt levels by deliberately underfunding pensions obligations. In the case of companies, they are using the money to buy back shares instead.

Yet central banks are likely to try to delay the day of reckoning by printing even more money, meaning that there could even be an initial “lurch to the upside” with “QE99” pushing prices even higher. However, Faber is sure that “eventually the system will break”. As a result, he stands by his prediction that shares prices are set to fall by up to 40%.

- Source, Money Week

Thursday, July 20, 2017

It’s going to end extremely badly, with stocks set to plummet 40% or more


If the man often hailed as the original "Dr. Doom" is right, the stock market could see another "lurch" higher — at which point investors may want to cash out quickly and run for cover.

Marc Faber, the editor of "The Gloom, Boom & Doom Report' and a perennial bear, isn't backing down from his latest dire prediction that would send stocks plummeting by 40 percent or more.

A drop of that size could take the S&P 500 Index down from Friday's closing price of 2,438 to 1,463.

He used the meteoric rise of FANG stocks, which reflects Facebook, Apple, Netflix and Google (Alphabet), as a glaring bearish signal.

"We've had more than eight years of a bull market. The Nasdaq is being driven by very few stocks," said Faber on Friday's "Trading Nation." That rally "is not a particularly healthy sign from a technical point of view, and valuations are very high," the investor added.

Faber's comments come exactly two weeks after the Nasdaq set its latest intraday record high of 6,341.70.

"You know we have a lot of volatility, and when things will start to go down, they'll go down a lot," he said.

Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it.

"Either people with money will be taxed heavily ... or we'll have a massive deflation in asset prices — I repeat: massive," he warned. "Eventually the system will break."

Faber is known for correction calls over the years which have never materialized. But he's sticking by his latest call, acknowledging critics have "questioned my sanity."

"We could print enough money that the Dow goes to 100,000. All I'm saying is it will end very badly, extremely badly," he said.

But it's not all gloom. Faber notes it could also give investors a rare "out-sized" buying opportunity similar to 2003 and 2009, when deep corrections gave traders a chance to load up on cheap assets.

- Source, CNBC

Monday, July 17, 2017

Marc Faber: There will be another massive financial crisis in my lifetime


Marc "Dr. Doom" Faber has a warning for investors — brace yourselves for another financial crisis.

Just last week, Federal Reserve Chair Janet Yellen said another crisis like the one in 2008 was not likely to happen "in our lifetime."

Faber told CNBC's "Squawk on the Street" on Monday that "I'm 71 and for sure in my lifetime, unless I have an accident tomorrow, I will see another financial crisis and a massive one."

He's particularly concerned about the high levels of debt around the globe.

"We have a colossal credit bubble in the world. Can it expand? Yes, but it cannot expand forever. One day there will be a limit and one day there will be another huge crisis because the debt level today is higher than it was in 2007," the editor The Gloom, Boom & Doom Report said.

The noted bear also has been calling for a big drop in the U.S. stock market and believes "we have a bubble in everything."

That said, he told CNBC, "I'm less bearish than I used to be. That worries me."

Because no one knows what the world will look like five years from now, staying diversified is key, Faber said. That means some money in real estate, stocks, bonds and precious metals.

"Although I'm pessimistic about the world and especially about political and social developments in the western world, I can still sleep well at night because I have the 25 percent exposure to equities."

He would look at international stocks over the U.S. market.


- Source, CNBC

Tuesday, July 4, 2017

Faber: I would rather invest in Europe than US


Marc Faber, editor and publisher of "The Gloom, Boom & Doom Report," discusses a bubble in the U.S. markets and how bonds and tech stocks could be to blame.

- Source, CNBC


Saturday, July 1, 2017

Faber: Gold Isn't Down as Much as Apple


Gloom, Boom and Doom Report Publisher marc Faber discusses the markets, gold and his investment strategy on Bloomberg Television's "Street Smart."

- Source, Bloomberg


Wednesday, June 28, 2017

Trump provides 'great entertainment' overseas, Marc Faber says


'The Gloom, Boom & Doom Report' editor Marc Faber discusses why Amazon, Netflix and Tesla shares will each drop 10 percent in a single trading session, and his views on President Trump.


Sunday, June 25, 2017

Faber: China's Unwind Will Be a Disaster


Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart."

- Source, Bloomberg

Thursday, June 22, 2017

There Is A Bubble In The Most Popular Stocks: Marc Faber


Marc Faber, Author, The Gloom, Boom & Doom Report states that there is a bubble in the most popular stocks.


Monday, June 19, 2017

Marc Faber: Asset holders will lose 50%

Full disclosure: Marc Faber is always preparing for a stock apocalypse. (That's why he’s commonly referred to as “Mr. Doom.”) Still, he insists, there’s method to his misery. And right now he sees two red flags flapping in the market.

One: On the New York Stock Exchange, there are currently more stocks purchased on margin—that is, with investors borrowing money to buy—than since at least the 1950s. That tends to happen when the stock market is expensive, as it is today.

Prices are actually out of control, Faber says. The historical average price-to-earnings ratio is around 17—but it's around 30 today.

Once people start selling, Faber warns grimly, there will be an avalanche. “I think a realistic scenario is that asset holders will lose 50% of their assets," Faber says. "Some people will lose everything.”

His other major concern is that only a small number of stocks are driving the bulk of the stock market’s ascent. Indeed, just five companies accounted for almost a third of the S&P 500’s total gains in 2016. This means that investors are relying on fewer companies to carry the market, he points out.“If only a handful of shares are moving up, it’s a sign,” Faber says. “The market isn’t healthy.”


- Source, Time


Wednesday, June 7, 2017

Modi better than Trump; India will outperform US over 5-10 years

On a day when market scaled record high on Tuesday, Marc Faber cemented bullish sentiment further by saying that India will continue to outperform the US and other western markets, he said in an exclusive interview with CNBC-TV18.

The editor and publisher of The Gloom, Boom, and Doom Report said that India has got a new government with (Prime Minister) Narendra Modi leading the charge from the front, has much better chance of implementing reforms than say US President, Donald Trump.

Commenting on the economy he said that central banks in emerging economies (EMs) such as India are much more responsible and educated about perils of money printing. RBI’s former governor Raghuram Rajan & present governor Urjit Patel have done a good job in stabilising the rupee.

Indian market is up 13 percent in local currency and in dollar terms, the market is up close to 18 percent led by a rise in the rupee. The currency is very important for foreign investors. A strong currency can pull foreign investors towards India, he said.

“I remain constructive on India and over the next 10-20 years, India has the potential to grow at 5-7 percent each year – which is huge compared to growth rate seen in the US or Europe,” said Faber.

India, according to PwC, in 20-30 years will become a second largest economy in the world similar to China. He also highlighted that only marginal amount of domestic saving find its way to Indian equity markets.

The wealthy families should at least put 20 percent of the money in Indian equities or Indian properties and direct investment because it is time to look forward.

Today, US stock market is 53 percent of the global stock market capitalisation now. But, in 10-20 years, it will be reduced to 20 percent and India and China will hog lion share up to 50 percent, highlights Faber.


- Source, Money Control

Saturday, June 3, 2017

Most Stocks Are Going to Lose Money - Except Mining Stocks

Well, basically some people say that the central banks are out of bullets. This is not my impression. They can keep on printing money and boost asset prices where by not all asset prices will go up, some will go up and some will go down. But the point I want to make is the central banks are not really out of bullets. The economy, if it weakens some stocks will outperform others, in other words recently you’ve seen the weaker in automobile stocks, so there is still a selective process in the market. The stocks that have gone up the most recently are actually mostly companies with very little earnings, very high evaluations, Tesla, Amazon, Netflix and so forth and we’ll have to see.

All I can say is when I look around the world, I don’t see any particularly good values in the U.S. except in mining companies and I think some of the interest rate sensitive stocks are again relatively attractive because I expect the economy to disappoint, especially if the Fed continues to increase interest rates and so a short increase in interest rates could mean some further weakness in bond prices but eventually bond prices could rally again and this is my view that the U.S. by any standards compared to historical evaluations, compared to Europe, compared to Asia, compared to emerging markets the U.S. is very expensive. Now, can it go up another ten percent? Maybe 20 percent? Yes, between December 1999 and 2000 March 21 when the stock markets peaked out the Nasdaq was up more than 30 percent, but was it a good buy? No, everybody who bought at the time in the first three months of 2000 lost money.

So, my sense is that yeah people can buy stocks here but most of them are going lose money with the exception in my view, that mining stocks will perform reasonably well.

- Source, Marc Faber

Tuesday, May 30, 2017

Euro To Strengthen, Dollar To Weaken, Gold & Emerging Markets To Outperform

I think that in terms of the economy I don’t think the economy is as strong as people believe or as the statistics would show and recent trends have rather been indicating some weakness is auto sales, not a particularly strong housing market and we have several problems as a result of excessive credit. So, I think that the economy is not going to do as well as people expect and concerning the huge infrastructure expenditure that Mr. Trump has been talking about, it is about a trillion dollars over ten years, maximum. In other words, a hundred billion a year.

In China in 2016 in the first ten months the infrastructure expenditures were 1.6 trillion, in other words 16 times higher than what Mr. Trump is proposing. So just to put this in a perspective. Now throughout Asia and the emerging world there will be a lot of infrastructural expenditures in the years to come. The question is will stocks go up because of that, maybe some stocks will go up and some will not. So, we have to be now increasing the selective in what we purchase in terms of equities. My sense is that the economy in the U.S. is weakening and not strengthening.

- Source, Marc Faber via Value Walk

Wednesday, May 24, 2017

China Looks Quite Attractive Right Now


The Gloom, Boom & Doom Report’s Marc Faber reveals which areas would generate the most profits for investors.

- Source, CNBC

Saturday, May 20, 2017

Faber: The U.S. Economy is Terminally ill


Marc Faber of the Gloom, Boom & Doom Report tells CNBC's Jackie DeAngelis and the "Futures Now" traders why the U.S. economy is in trouble.


Wednesday, May 17, 2017

Marc Faber on investment strategy


Marc Faber, the editor of the Gloom, Boom & Doom report, discuss potential investments with Brian Sullivan.


Sunday, May 14, 2017

Trader takes on Marc Faber


Scott Nations and Marc Faber, editor of the Boom, Gloom and Doom Report square off on their views of the market.


Wednesday, May 10, 2017

Marc Faber: The biggest risk to markets right now


Marc Faber, aka Dr. Doom, discusses the markets and warns a giant pullback is on the way. With CNBC's Jackie DeAngelis and the Futures Now traders, Jim Iuorio and Scott Nations, both at the CME.

- Source, CNBC

Friday, May 5, 2017

Euro To Strengthen, Dollar To Weaken, Gold & Emerging Markets To Outperform

Mike Gleason: Well, to start out here Dr. Faber, before we get into some other stuff I wanted to hear your comments on the state of the U.S. economy. Now, it appears the Federal Reserve has finally gotten serious about moving rates higher at least modestly. U.S. equity markets seem to be discounting that fact, focusing instead on the so-called Trump trade. Markets are pricing in a huge infrastructure spending program and tax cuts stimulates that could overwhelm any modest tightening at the Fed. Now that efforts to reform healthcare seem to be failing we expected some of the optimism surrounding president Trump’s other initiatives would leak out of the stock market but so far that hasn’t happened.

Stocks remain near record highs and there isn’t a whole lot of interest in safe haven assets including precious metals. So, what are your thoughts here Marc? Is now a time to take some profits and move towards safety or is there still some good upside in equities?

Marc Faber: Well, I think that in terms of the economy I don’t think the economy is as strong as people believe or as the statistics would show and recent trends have rather been indicating some weakness is auto sales, not a particularly strong housing market and we have several problems as a result of excessive credit. So, I think that the economy is not going to do as well as people expect and concerning the huge infrastructure expenditure that Mr. Trump has been talking about, it is about a trillion dollars over ten years, maximum. In other words, a hundred billion a year.

In China in 2016 in the first ten months the infrastructure expenditures were 1.6 trillion, in other words 16 times higher than what Mr. Trump is proposing. So just to put this in a perspective. Now throughout Asia and the emerging world there will be a lot of infrastructural expenditures in the years to come. The question is will stocks go up because of that, maybe some stocks will go up and some will not. So, we have to be now increasing the selective in what we purchase in terms of equities. My sense is that the economy in the U.S. is weakening and not strengthening.

Mike Gleason: It is also possible markets aren’t responding to fundamentals and we ought to consider those ramifications. The advent of high frequency trading and massive intervention by central bankers could mean markets become more irrational than ever. It is possible for instance to see stock prices being bid higher despite slowing GDP growth, rising interest rates and congress failing to deliver fiscal stimulus here in the U.S. I mean, how artificial do you think markets are and to the extent today’s markets aren’t real, how much long will the central planners and bankers be able to maintain this illusion that they’ve created?


Marc Faber: Well, basically some people say that the central banks are out of bullets. This is not my impression. They can keep on printing money and boost asset prices where by not all asset prices will go up, some will go up and some will go down. But the point I want to make is the central banks are not really out of bullets. The economy, if it weakens some stocks will outperform others, in other words recently you’ve seen the weaker in automobile stocks, so there is still a selective process in the market. The stocks that have gone up the most recently are actually mostly companies with very little earnings, very high evaluations, Tesla, Amazon, Netflix and so forth and we’ll have to see.

All I can say is when I look around the world, I don’t see any particularly good values in the U.S. except in mining companies and I think some of the interest rate sensitive stocks are again relatively attractive because I expect the economy to disappoint, especially if the Fed continues to increase interest rates and so a short increase in interest rates could mean some further weakness in bond prices but eventually bond prices could rally again and this is my view that the U.S. by any standards compared to historical evaluations, compared to Europe, compared to Asia, compared to emerging markets the U.S. is very expensive. Now, can it go up another ten percent? Maybe 20 percent? Yes, between December 1999 and 2000 March 21 when the stock markets peaked out the Nasdaq was up more than 30 percent, but was it a good buy? No, everybody who bought at the time in the first three months of 2000 lost money.

So, my sense is that yeah people can buy stocks here but most of them are going lose money with the exception in my view, that mining stocks will perform reasonably well.

Mike Gleason: Let’s shift focus now and talk about what is happening elsewhere in the world, you’ve alluded to it in prior answers but you’re originally from Europe and now you live in Asia. Now, it’s easy for Americans to focus on domestic affairs such as the new president and lose track of important developments in other parts of the world. Can you update our listeners on developments you are watching in Asia? China in particular.

Marc Faber: Well, whether it’s sustainable or not the fact is that the Chinese economy has been improving recently, somewhat. Maybe it’s all driven by credit but for now they have stabilized the economy, it’s improving and it has had a huge impact on the prices on resources including copper and zinc and nickel and so forth and it has had a favorable impact on the Asian market. Earlier you asked me about the U.S… this whole euphoria about the performance of U.S. stocks, the fact is in Asia just about every market has outperformed the U.S. In Europe, just about every market has outperformed the U.S. measured in U.S. dollar terms. So, I think that the impact of an improving Chinese economy is being felt more in other emerging economies than say, in the United States.

Mike Gleason: How about Europe? The future of the European Union is in question with some important elections upcoming, banks there remain at risk and several if not most countries continue to struggle with slow growth and overwhelming debts. Give us your thoughts on Europe and how things might unfold there over the remainder of the year.

Marc Faber: Well, I’ve just written two reports recently highlighting that in Europe there are some companies, mostly utilities and infrastructure related companies that on a valuation screen appear relatively attractive.

- Source, Value Walk

Saturday, April 29, 2017

Marc Faber: India to Grow Between 4 And 7% in Coming 10 Years

The market has altered downwards and we are in a purchasing range. It does not matter even if India develops at 5% or 7% per annum but if think about the coming 10 years, you could simply anticipate an economy that grows all over on an average between 4 and 7% per annum, which is very a high growth rate.

I assume that earnings ultimately track the “GDP growth”. Presently, the estimations in India are satisfactory. But I have one thing to add. Just couple of years back, indexing has gained the tag of “new trend” around the world. Ample amount of money is been invested in a submissive way in ETFs—who are interested in buying index.

If we consider 2016, a huge difference can be seen in the achievements of distinct sectors in the United States—the gold shares being the best performing sector. Apart from it, energy sector performed best while biotechnology performed the worst. The world is again shifting toward “stock pickers’ era” wherein people give their best performance provided they are in the appropriate sector.

In the present year, some of the stocks related to the commodity will be of high interest; specifically the stocks including gas and oil. I have observed agricultural, fertilizer, and plantation companies to be the most interesting sectors. They have noteworthy future as prices have been very uncertain for agricultural commodity since 2011. These agricultural commodity prices will thus lead the game and put behind others resulting in increasing prices.

So this is what Marc Faber has to say about Indian economy. What are your opinions regarding the same? Feel free to share your thoughts.


Wednesday, April 26, 2017

Marc Faber: Buy European Stocks as US Plunge Looms

Investment guru Marc Faber warns savvy investors to buy European shares amid a looming U.S. market tumble.

“I would buy European stocks,” Faber told Fox Business Network. He said the U.S. market is “completely out of range” with the other world markets.

“Investors should understand that markets can also go down and it would not surprise me to see the inflated asset markets especially the financial markets being down 20 to 40 percent at some point,” the publisher of the Gloom, Boom & Doom report predicted.

Faber doesn’t believe all the media hype surrounding the raging bull stock market since Donald Trump won the election.

“ I think there will be a closing of this diverging performance with either Europe outperforming the U.S. or both going down or the U.S. going down more,” he told the Fox Business Network’s Charles Payne.

However, other business icons are much more optimistic.

Steve Forbes, chairman and editor-in-chief of Forbes Media, recently told Newsmax TV that he is optimistic that stocks have room to reach new records as President Donald Trump pushes forward with his pledge to cut taxes and regulation.

“Markets always try to anticipate the future. One of the reasons it had such a big surge since the election, especially small-cap stocks, is in anticipation of deregulation which the president started and I think he's going to follow through on that,” Forbes told Steve Malzberg on Newsmax TV's "America Talks Live."

- Source, NewsMax

Sunday, April 23, 2017

India, EMs outlook far superior than “rotten western democracies”


Marc Faber the author of The Gloom, Boom & Doom Report, is of the view that India will outperform the US over a 5-10 year period. In a conversation with ET Now Faber said, “India has done very well in 2017 and is grossly outperforming the US. Even if India grows at only 5%, it is still better than the US, Europe”. Citing a PwC report he said, India would be the second largest economy by 2050. “Outlook for the Chinese, Indian economy for emerging markets, in general, is far superior to the outlook in our rotten western democracies,” he told the business news channel.

He also suggested in investing into commodity stocks given the low prices of commodities. Marc Faber preferred to invest in commodity-related plays over financial assets. However, Faber cautioned that each commodity has to be analyzed separately. He also pointed out to a positive outlook for copper, as he said that the shift to electric cars will increase demand for the metal. Among other stocks, Marc Faber named real estate, travel & tourism and hotels as the sectors he likes. He said he sees a huge opportunity in real estate on the trend of buying 2nd homes, and added that domestic and international tourism will bring potential for hotel chains, travel companies.

Earlier this year, Marc Faber has suggested that the newly-elected US President Donald Trump’s policies are rather good for the emerging markets, contrary to the popular sentiment that such policies will restrict trade from the emerging economies and hurt them. “Everyone makes a big hoopla on the US markets going up this year,” Marc Faber had said in a TV interview to CNBC’s Squawk Box. “We are up 4.66%, (while) Hong Kong is up 9%, Singapore is up 9%, Mexico is up 6%, and Brazil and Argentina are up 20%,” he had said to drive home the point that Trump’s policies were “quite good” for the foreign markets.



Thursday, April 20, 2017

Marc Faber: Trump rally may not last long


History shows that the initial bump in markets might not stick around in the longer term, says Marc Faber, editor of The Gloom, Boom & Doom Report.


Monday, April 17, 2017

All paper currencies are DOOMED!: Marc Faber


Marc Faber, The Gloom, Boom & Doom Report, and Frank Berlage, Multilateral Partners Global Advisory, look at risks lurking in the markets.

- Source, CNBC

Monday, April 10, 2017

Marc Faber on stocks, bonds, gold and more


Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” speaks to Brian Sullivan.

- Source, CNBC

Thursday, March 30, 2017

Economist Marc Faber Warns Investors to Go Long on Gold, Silver, and Platinum in 2017

What is the Dr. Marc Faber prediction for gold and silver in 2017? Suffice it to say, Faber is a contrarian economist, which means he’s bullish on both investing in gold and investing in silver in 2017. Even though he’s a broad-based contrarian investor, his reasons for telling investors to go long on gold and silver are rock-solid.

Why should investors care what Faber says? After all, it’s easy to be a contrarian; just grumble about everything. But, to be a good contrarian investor, you need to know what you’re contrary about, and Faber does. A world-class economist-historian, Swiss-born Faber studied at the prestigious University of Zurich, where, at the age of 24, he graduated with a PhD in economics.

When it comes to making stock market predictions, he’s eerily well informed. He warned his clients to get out of the stock market before Black Monday. On Monday, October 19, 1987, the stock market experienced its biggest one-day crash in history. The Dow Jones Industrial Average (DJIA) spiraled, losing 22.6% of its value, or $500.0 billion.

He forecasted the Japanese bubble in 1990, predicted the collapse in U.S. gaming stocks in 1993, and anticipated the Asia Pacific financial crisis of 1997/98, and ensuing global volatility.

In his 2002 book, Tomorrow’s Gold: Asia’s Age of Discovery, Faber predicted the rise of oil, precious metals (including gold prices and silver prices), emerging markets, and China. He also predicted the decline of the U.S, dollar since 2002. As a contrarian investor, Faber is always on the lookout for opportunities. “Dr. Doom” was bullish for the U.S. dollar in mid-2008, just before it recovered.

Like all good contrarian economists, Faber wants his readers to make money, and he often discusses investing in silver and investing in gold. His analysis is based on economic, social, and historical trends, and he warns investors when widely accepted investments have become overpriced and risky. At the same time, Faber looks for opportunities in overlooked, unloved, depressed markets.

His motto, “Follow the course opposite to custom and you will almost always be right,” is just a little tough for most investors to handle. It’s easier to be a lemming and run blissfully toward the cliff than invest confidently based on things nobody wants to hear.

Right now, Faber is warning investors that both stocks and the U.S. dollar are overvalued. With Donald Trump in the Oval Office, investors need to adjust their portfolios and go long on gold shares, silver shares, platinum shares, physical gold, physical silver, and physical platinum. (Source: “Marc Faber: Good Times Ahead for Precious Metals,” Fox Business, January 17, 2017.)

2017 Will Be a Year of Disappointment

Faber does not believe that President Trump will make America great again. Not for lack of trying, though. Faber believes that Trump’s policies will benefit the U.S. economy but won’t be enough to save the stock market in the long run.

Instead, he believes that 2017 will be a year of disappointment for U.S. investors. Dr. Doom does not necessarily believe there will be a near-term sell-off in stocks, but he does maintain that, in light of low-quality economic growth, a number of important catalysts could send gold precious metal prices soaring.

U.S. Stocks Overvalued

First, every major valuation ratio says U.S. stocks are seriously overvalued. According to the cyclically adjusted price-to-earnings (CAPE) ratio, the S&P 500 is overvalued by 82%. The ratio is currently at 29.05; the long-term average is 16. That means, for every $1.00 in earnings, an investor is willing to pay $29.05. It has only been higher for longer twice: in 1929 and 1999. (Source: “Online Data Robert Shiller,” Yale University, last accessed February 17, 2017.)

In October 1929, before Black Tuesday, the ratio was at 30. In 1999, it was at 45. Before Black Monday in 1987, it was 17.68. (Source: Ibid.)

The Warren Buffett indicator (market cap to GDP ratio) is considered to be one of the best measures of stock market valuations. A reading of 100% suggests that U.S. stocks are fairly valued. The higher the ratio is over 100%, the more overvalued stocks are.

The market cap to GDP ratio is currently at 129.8%. The Warren Buffett indicator has only been higher once since 1950. In 1999, it was at 153.6%. It was only at 108% before the stock market plunged in 2008. It was at 129.7 in late 2015.

The Wilshire 5000 to GDP ratio is the largest index by market cap in the world, and is comprised of all stocks actively traded in the United States. The ratio has never been higher. It is at an all-time high of around 140.5. (Source: “Wilshire 5000 Total Market Full Cap Index/Gross Domestic Product,” Federal Reserve Bank of St. Louis, last accessed February 14, 2017.)

U.S. Dollar Overvalued

Yes, the U.S. dollar is strong, but it might be too strong. Over the course of the last year, the U.S. dollar, on a global trade-weighted basis, is up by 20% to 25%. In the weeks following Trump’s election win, the Greenback experienced one of its strongest gains. Since its 2011 lows, the U.S. dollar is up more than 40% against a basket of peers. This has made the U.S. dollar one of the most overvalued currencies in the world.

Why is the dollar so strong? Investors are increasingly optimistic that Trump’s economic policies will strengthen the U.S. economy and be good for corporate profits. Trump’s proposed corporate tax holiday is also bullish for the U.S. dollar.

At the same time, central banks from around the world (Japan and the European Union) continue to favor quantitative easing (QE), which devalues their own currencies relative to the Greenback.

On one hand, a strong U.S. dollar makes imports cheaper, which is less of a strain on American consumers. On the other hand, it makes exports more expensive, which is bad for U.S. companies that rely heavily on exports. S&P 500 companies generate roughly half of their revenue from overseas.

Even Trump has weighed in on the dollar, saying that a strong dollar is bad for the U.S. economy. Trump observed that the strong dollar was “killing us” and that U.S. companies cannot compete with Chinese companies because the dollar is too strong. (Source: “TRUMP: The strong dollar is ‘killing us’,” Business Insider, January 17, 2017.)

Investor Optimism Too High

Investors’ optimism is in overdrive, as is investor complacency. The CBOE Volatility Index (VIX), better known as the “fear index,” is at its lowest levels since 2008. Meanwhile, according to a survey by Bank of America Merrill Lynch, investor optimism is at its highest levels since 2011. Over the next 12 months, almost a quarter (23%) of investors expect an outright boom. The number of those forecasting negligible growth tumbled by more than half to 43%. (Source: “Investors’ Economic Optimism Surges to Level Not Seen Since 2011,” Bloomberg, February 14, 2017.)

Again, investors are optimistic that the U.S. and global economies will take off under Trump’s proposed tax cuts, regulation cuts, and increased fiscal spending.

This isn’t a one-off; according to the National Federation of Independent Businesses’ monthly survey, small business optimism is surging. January saw the highest level of optimism in 13 years.

Keep in mind, U.S. stocks might be at record levels and investors are euphoric, but the U.S. economy is not as strong as the indices suggest. U.S. gross domestic product (GDP) advanced just 1.6% in 2016, which is the lowest reading since 2011. In 2015, U.S. GDP was 2.6%.

Contrarian Way to Play the Trump Presidency

As investors begin to see the significant risks with the dollar, stock market, and U.S. economy, Faber believes that money will begin to flow into precious metals over the next three to six months.

Interest rates are so low that investors cannot make money in bonds as a result. Stocks continue to be one of the only places for investors to make money. Despite nosebleed valuations, investors will send stocks climbing to a “higher diving board.” This means stocks will have further to fall when markets start to correct. (Source: “Trump will soon be begging the Fed for QE4: Marc Faber,” CNBC, January 11, 2017.)

Enter silver, gold, and platinum. Precious metals like gold and silver are considered to be a safe haven in times of economic and political uncertainty. Investors are happy to send stocks to record levels, but that euphoria will only last for so long.

In 2017, Faber expects the U.S economy to stall and deficits to rise. This will force Trump to go “begging the Fed to launch QE4.” This will cause the over-inflated dollar to weaken, stocks to tumble, and “precious metals to go ballistic.”

So, what is the Marc Faber prediction for gold and silver? When it comes to U.S. equities, the only space that Faber likes right now is gold, silver, and platinum stocks. While gold prices are up almost eight percent since the beginning of 2017, they are still down three percent since the U.S. election. Silver prices are up more than 13% in 2017, but are also down around three percent since the election.

Faber believes that physical gold and silver—as well as gold, silver, and platinum stocks—are attractive at these relatively lower levels.

What could investors looking to invest in physical gold, silver, and platinum or in silver, gold, and platinum mining stocks do in 2017? Faber advises his clients to invest 25% of their portfolios in bullion, especially in light of the significant risks facing investors today.(Source: “Marc Faber: Gold Should Comprise 25 Percent of Your Investment Portfolio,” Newsmax, July 26, 2016.)

Investing in gold is protection from the dangerous combination of government debt and quantitative easing by central banks trying to fight off a global recession with a near-zero interest rates.

When it comes to investing in silver, investing in gold, and investing in platinum, Faber likes physical gold, silver, and platinum, as well as precious metal mining shares. He also has an investing horizon similar to Warren Buffett’s: forever. Faber never sells his gold, and buys more every month.


- Source, Lombardi Letter

Monday, March 27, 2017

Marc Faber says the very complacent market could go down for these 3 reasons

The "very complacent" market is discounting three critical trends that could ultimately lead to a correction, Marc Faber, editor of The Gloom, Boom & Doom Report, told CNBC on Thursday.

The man also known as "Dr. Doom" said on "Fast Money Halftime Report" that foreign currencies, the U.S. economy and the Trump administration could all contribute to a significant dip.

Faber said the stability of the U.S. economy relative to foreign nations' economies has attracted capital to the United States, boosting the dollar and stock prices. But the trend could reverse, he said.

"I believe the time will come when the weakness of the euro becomes uncomfortable for the Europeans, specifically the Germans, and then there will be a reverse," Faber said. "And the dollar will go down, and the money that flowed into U.S. assets will flow out of U.S. assets, and so the market is more likely to go down."

And, while the U.S. economy looks strong relative to other countries', Faber contended that it is still quite weak based on indicators like tax receipts, car sales and personal consumption levels.

"I believe also the policies of Mr. Trump will actually not reduce the government," Faber continued, suggesting that the commissions President Donald Trump sets up to restructure government agencies will actually go against traditional Republican ideals.

"Plus, fiscal spending means essentially an expansion of the government, so that is not pro-growth in my book," Faber added.

And, while Dr. Doom did not shed light on the timing or financial impact of a potential correction, he said that he will share in the effects.

"We have roughly inflated asset markets. I also own shares, I also own bonds, and I also own precious metals. I also own real estate. So if asset prices go down, I suffer like you and everybody else," he said. "But at least I know that it can happen."

Appearing on CNBC's "Futures Now" in February, Faber predicted that a market sell-off could trigger a selling "avalanche."

- Source, CNBC

Sunday, March 19, 2017

China looks ‘quite attractive’ right now: Marc Faber


The Gloom, Boom & Doom Report’s Marc Faber reveals which areas would generate the most profits for investors.

 - Source, CNBC

Wednesday, March 15, 2017

Trump is good for Asia: Marc Faber


Marc Faber, editor of The Gloom, Boom & Doom Report, talks about how Asia is becoming more "China-centric."

- Source, CNBC

Sunday, March 12, 2017

Why Marc Faber Says 2017 Will Be Good For Gold


(Video cannot be embedded, please click image to view)

Investors may be in for a “year of disappointments” and precious metals may prove to be a useful hedge, this according to famed contrarian investor Marc Faber. Known as Dr. Doom for his often pessimistic views, Faber told Kitco News his 2017 outlook is no different to his previously negative forecasts. “As we come into 2017, investors seem to be extremely optimistic about U.S. equities and about the U.S. dollar,” he said. “I think we can have a year of disappointments.” 

Faber said investors should look to have exposure in commodities, especially platinum, which he dubbed his “favourite precious metal for 2017.” “The individual investor will find it difficult to trade commodities where he has to rollover his position every month or every 3 months, which is very costly,” he explained. “For the normal investor who wants exposure in commodities, the best is to be in precious metals - gold, silver, platinum.”

- Source, Kitco

Thursday, March 9, 2017

An Avalanche of Selling is Coming: Faber


The Gloom, Boom & Doom Report’s Marc Faber discusses why he foresees the end of the market's bull run.


Monday, March 6, 2017

The Stock Market Rally is Overextended: Marc Faber


The man known as Dr. Doom argues the U.S. rally is overextended and makes the case for investing in overseas markets.

- Source, CNBC

Friday, February 17, 2017

Marc Faber: BREXIT Is a Side Show; QE4 Might Be Coming Next


CNBC's Martin Soong caught up with Marc Faber, Editor and Publisher of the Gloom, Boom and Doom Report and started by asking his views on Brexit and the global economy going forward into 2017.


Tuesday, February 14, 2017

Marc Faber - Trump Will Beg Fed For QE4


In this segment, Jerry visits with world-renowned contrarian investor Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report" and Director of Marc Faber Limited, which acts as an investment advisor and a fund manager. Among the key points:

The exceptional performance of the S&P 500 under President Obama

Are we closer to the top or the bottom of the market?

The immense popularity of indices/ETFs

Is Trump merely posturing with China?

Will Trump create prosperity for everyone... or just the corporations?

The Contrarian Investment Philosophy explained
Marc's Contrarian bet right now!


Friday, February 10, 2017

Marc Faber on When Doom Arrives for Wall Street


Gloom, Boom & Doom Report Editor Marc Faber discusses his outlook for the markets.


Friday, January 27, 2017

Marc Faber: Investors Too Bullish on US as Dollar is Currently Overvalued

Investment guru Marc Faber warns that investors are too bullish about the U.S. and that the American currency is overvalued.

“Investors are too bullish about the U.S. and far too negative about emerging-market economies. I also think they are neglecting Japan and European equities so anything outside the US is probably from my perspective more attractive,” he told India’s CNBC TV 18.

The U.S. dollar “is too strong” and “is probably overvalued at this level already,” said Faber, also known as "Dr. Doom" for his often pessimistic and apocalyptic market predictions.

“It may overshoot further which may then cause a problem for the Federal Reserve because as they said they basically plan to have three interest rate increase in 2017. But if the dollar is too strong maybe they can't do it,” he said.

The Federal Reserve "can have other central banks print money for them for a while and then in 2017 possibly the dollar becomes too strong and the U.S. economy rather weakens than strengthens then they can print again themselves. They have an excuse," he said. "I still maintain that central banks will keep on feeding the world with excess liquidity," he said.

“Valuations in the U.S. are at historically very high levels whereas elsewhere they are relatively inexpensive valuations. So, I would focus on foreign markets and I would focus on sectors that were out of favor for a long time,” he said of investing strategy for the new year.

Oil and mining companies, financials and tech are among his favorite sectors for 2017, he said, adding that he sees a lot of potential in agricultural commodities.

“People will tell you that emerging markets performed poorly in 2016 and that the U.S. was the only game in town. But let me just say that in U.S. dollars in 2016 the Russian index was up 51 percent, Brazil 63 percent, Kazakhstan 66 percent, Thailand 19 percent, Indonesia, 19 percent, Karachi 40 percent, Vietnam 30 percent,” he explained.

“Some markets have actually performed very well. We turn to individual stocks some stocks have done very well in 2016 in particular the sectors that were very depressed like oil and gas and mining companies that is until recently have weakened but on the year they are still up strongly,” Faber said.

- Source, NewsMax

Tuesday, January 24, 2017

Trump trade war will hurt US more than China

If President-elect Donald Trump's rhetoric ends up fueling a trade war with China, it's the U.S. that will take it on the chin, Marc Faber, the publisher of the Gloom, Boom & Doom report, told CNBC on Friday.

"Mr. Trump is not particularly keen on China," Faber told CNBC's "Squawk Box" on Friday. "There may be some trade war escalation or trade restrictions with China, which in my view would rather be negative for the U.S. than for China."

Trump has certainly set his sights on China. On the campaign trail, Trump repeatedly accused China of manipulating its currency in order to give its exports an advantage over U.S.-made goods, and he threatened to slap a tariff of up to 45 percent on Chinese imports.

While China's yuan has fallen against the U.S. dollar in recent months, policymakers on the mainland have been intervening to support the currency, not weaken it.

But Faber, who is also known as Dr. Doom for his usually pessimistic predictions, noted that China wouldn't be easily cowed.

"China does not depend on the U.S. The U.S. is still its largest export destination as a country, but taken together, all the emerging markets are for China much more important," Faber noted.

China exported about $482 billion in goods to the U.S. last year, more than any other country exported to the United States, according to the Office of the United States Trade Representative. The U.S. exported about $116 billion in goods to China in 2015, putting its goods trade deficit $366 billion.

That compared with the 10 members of the Association of Southeast Asian Nations (Asean) alone importing $211.55 billion from China in 2015, while exporting around $134.25 billion to the mainland, according to data posted in November by the trade bloc.

- Source, CNBC

Saturday, January 21, 2017

Marc Fabers Investment Predictions for 2017

In general volatility will increase though volatility has been quite high in 2016 . At the beginning of last year, we dropped to 1810 on the S&P and then we closed over 2200. So we had a big move in the market and then we had currency moves that were also very strong. Some currencies went down but others appreciated against the US dollar – bitcoins, the Brazilian Real and the Russian Rouble. It was a year where you could make a lot of money and also lose a lot of money depending on how you were positioned.

For the year, I do not know but for the near future, I have essentially three views. First off all, the US economy is like a supertanker or a sailboat. It is not easy to turn it around and come back to where you have been in terms of prosperity. In general, Mr Trump’s policies will fail to lift economic growth rates significantly.

US stocks, compared to emerging markets or European companies or Japanese stocks, are significantly ahead of themselves. In 2017, emerging markets will outperform the US either by going down less than the US or by going up substantially more than the US. So I would essentially avoid the US and rather invest in emerging economies including India. 

The second view I have is that recently investors have been obsessed with growth in the United States and with interest rates going up because the Fed has said that they would essentially increase the Fed fund rates three times this year but in the US, the treasury bond market is grossly oversold and for the next three months, we can have a rebound in US treasuries. Short-term and long term interest rates in the US are going to ease again in the next three months. You could get the 5% to 10% upside move in US treasuries.

- Source, ET

Sunday, January 15, 2017

Marc Faber: Trump rally may not last long


History shows that the initial bump in markets might not stick around in the longer term, says Marc Faber, editor of The Gloom, Boom & Doom Report.

- Source, CNBC

Thursday, January 12, 2017

Marc Faber Discusses, Is Donald Trump the Next Ronald Regan?

Numerous people have compared victory of Donald Trump to Ronald Regan who became US president in 1980 and started his job in 1981 and they say well there will be a Trump bull market like the Regan bull market in the 80s. 

First of all when Regan got elected the market rallied into November 28 1980 but afterwards it went into bear market for two years until August 1982 and then afterwards I admit it had a huge bull run until 1987, Dow Jones from 800 to 2,700. But the point is that in November 1980 when Regan got elected there was a huge change in leadership. 

A wave from oil and gas which at that time made up to 28 percent of the S&P 500 to other stocks to this inflation beneficiaries and regardless of how you look at the world whether you are positive about Trump, negative or positive about the US dollar regardless of that that we are reaching a point which is also supported by the recent market action where we have a huge change in leadership away from stocks like Facebook, Amazon, Netflix, Google to more basic industries to come out of their related companies.

- Source, Marc Faber via CNBC

Monday, January 9, 2017

Clear indicators of dollar and world market collapse, heres why!


What will happen in 2017? For Economic, Gold, Silver Prices, US & World Economy, Debt, Dollar, Currencies & Stock Market Predictions on Collapse, Crisis and Crash by Top Economists and Investors.


US Fed not expanding asset base; dollar overvalued

Asserting that the central banks in Europe and Japan will keep feeding excess liquidity to the world, Marc Faber believes that the US Fed is not expanding its asset base. While European Central Bank and Bank of Japan are doing so, flows out of Europe and Japan will lead to weakening of the euro and yen and strengthen the dollar, he said. The editor of Gloom Bloom & Doom Report told CNBC-TV18 that contrary to popular opinion that emerging markets have performed poorly in 2016, any market outside the US looks very attractive now especially in terms of valuations. 

Investors are too bullish about the US, negative about emerging markets, and are neglecting Japan and Europe, he said. India is much better placed and has greater potential to grow than Western economies, Faber said. Corporate profits have still room to expand, he added. 

Fundamentally, the dollar is overvalued and valuations in US markets are at historical highs, he said. Any further strengthening of the US dollar will curb the US Federal Reserve’s capability to raise interest rates, Faber said. 

The Fed on Thursday raised rates by 25 basis points and in the past indicated the possibility of three interest rate hikes in 2017. Oil and mining companies, financials and tech figure among his favourite sectors for 2017, he said, adding that he sees a lot of upside potential in agricultural commodities.

- Source, CNBC

Monday, January 2, 2017

I’m Against The Demonetisation Drive In India: Marc Faber


Marc Faber, Editor & Publisher, The Gloom, Boom & Doom Report states that he is against the demonetisation drive in India.