Monday, September 29, 2014

Social Media Stocks Are Overvalued & In Bubble Phase


Marc Faber believes that the tech sector is in a bubble that is about to pop. He has always been a firm believer of gold and hard assets. Which would you rather own?

Many investors have speculated that the technology industry has been in a bubble recently due to the Federal Reserve's aggressive monetary policy initiative of low interest rates and monetary expansion.

Saturday, September 27, 2014

Raw Uncut Footage of Marc Faber Home Interview


Raw uncut footage of a Squawkonomics Home Interview with investment legend Dr. Marc Faber. Dr. Faber discussed with Keith Hilden of Squawkonomics about Bitcoin vs. gold, the Vietnamese investment environment, the South China Sea, Ukraine vs. Russia investment, the question of whether Africa will emerge, and the People's Bailout, bailing out Main Street rather than Wall Street.

Thursday, September 25, 2014

Only Asset Class That is Relatively and Absolutely Depressed is Gold & Silver Shares


This week we are kicking off the relaunch of Palisade Radio to mark our one year anniversary and over 100,000 views to date. We have put together an all star line up of industry experts that include Jim Rogers, Doug Casey, Eric Sprott, Rick Rule, Frank Holmes, James Turk, and today on the show with us is renowned investor Marc Faber.

When speaking about an imminent stock market correction, Marc Faber argues that since the market hasn't had more than a 10% correction since 2011, it is likely that we will see a 30-40% decline in the not too distant future.

Marc has witnessed many bull markets and crashes in his career. Marc says that bull markets frequently go on for longer than expected, but the current bull market is already very old, and has been going up steeply since 2009 – in other words, more than 5 years old. “The one thing I can say, is that we are in an aging bull market, and the recovery has lasted longer than the typical recovery phase over the past 100 years.”

We ask Marc if the Fed's current slowdown in tapering will be reversed in a stock market correction? Marc points out that whenever there is a problem with liquidity in the markets (1988, 2000, 2007), the Fed has stimulated the economy by injecting liquidity, so it's not unlikely that the Fed will again try to support asset markets. The problem is when this goes on long enough, numerous assets aren't affordable for the majority of people. The impact of this may be negative for the economy, because some asset prices may rise disproportionately in comparison to other prices.

In the multi year low in mining equities, Marc says that general assets are very high right now. And the only asset class that in Marc's view are beaten down now are the gold and silver mining shares. When looking at the Dow Jones Index in comparison to the GDXJ(junior gold mining stocks index), the underperformance from the GDXJ has been colossal. As a contrarian or as a value investor, Marc sees reasonable value in the gold mining stocks right now. Government bonds and other assets are essentially inflated, but the gold mining stocks are deflated.

Speaking on the influx on gold into Asia... Marc thinks it's an interesting situation, because in the west we have rumors of central bank's manipulation of the gold market to keep the price depressed. Marc believes that these rumors are insensible – the West should want to sell their gold at a high price, not at a low price point.

Finally, in the last 20 years, there has been a huge increase of wealth in Asia. The increase in gold purchases in Asia, comes from a growing population, and a population which is increasingly affluent. Marc says that in terms of the Asian stock markets, they are relatively depressed in comparison to the US stock markets, and there is better value there.

Dr Faber publishes a widely read monthly investment newsletter "The Gloom Boom & Doom Report" report, which highlights unusual investment opportunities, and is the author of several books, including “ TOMORROW'S GOLD – Asia's Age of Discovery” which was first published in 2002 and highlights future investment opportunities around the world. “ TOMORROW'S GOLD ” was for several weeks on Amazon's best seller list and is being translated into Japanese, Chinese, Korean, Thai and German. Dr. Faber is also a regular contributor to several leading financial publications around the world.

Monday, September 22, 2014

Faber Thinks Gold Has Bottomed

Marc Faber of the Gloom Boom & Doom Report thinks geopolitical issues will become more important for US markets, and says he thinks gold has bottomed.

Faber tells FOX Business Network that the geopolitical issues may well stretch beyond Iraq and Gaza. “There has been some reaction [in Europe] but there hasn’t been much reaction in the U.S. yet,” he says. “I think that geopolitical issues will become more important. At the present time what is dominating the geopolitical discussion is what is happening in the north of Iraq, ISIS and in the Gaza stretch and in Syria but it could spread out to Saudi Arabia. Because, don’t forget Saudi Arabia is a huge border with Iraq and also it could spread out into Turkey and then it obviously wouldn’t be very favorable for global trade.”

As for what he holds, Faber says that “basically I always own some shares, most of my shareholdings are in Asia. … I would own some gold, because I think the gold market has bottomed out. Year to date the junior gold mining index is up 40 percent.”


Saturday, September 20, 2014

World Is Probably Going Back Into Recession


Marc Faber appears on Fox Business, where he discusses the global economy. He see's another recession on the horizon.

Wednesday, September 17, 2014

Global Economy not Supporting Valuations


Is the S&P about to take 30 percent dive? Marc Faber, the editor and publisher of the Gloom, Boom & Doom Report, says the global economy does not support current valuations and the market may bypass a meaningful correction and go straight to a crash.

Monday, September 15, 2014

These are the Markets that Marc Faber Likes


Marc Faber, Publisher, The Gloom, Boom & Doom Report, explains why he thinks the agriculture sector is a good place for investments.

Saturday, September 13, 2014

Marc Faber Likes Gold, Silver


Marc Faber, publisher of the Gloom, Boom & Doom report, talks about his investment strategy and the outlook for global financial markets. Faber speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia."

Thursday, September 11, 2014

More Market Volatility in Next 6-12 Months


Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for global markets. Faber speaks with Matt Miller on Bloomberg Television's "In the Loop."

Wednesday, August 6, 2014

It is Pointless to Talk to the FED

It’s pointless to talk to Fed members about economics because they are academics who believe in money printing. Some of them believe they didn’t print enough, and so with these kinds of people, it is like running to the pope. What do you want to tell them? It’s pointless to spend time with these people trying to convince them that their monetary policies have been very destructive. They bailed out Mexico in 1994, and there was an EM bubble until 1997. They then bailed out LTCM (Long-Term Capital Management), which gave a signal to leverage up...then they had the Nasdaq bubble, then they printed again and had the housing bubble. David Hume and Irving Fisher said bubbles are very destructive to the majority of market participants. They lose money, the minority makes money. The Fed doesn’t see it that way so it is pointless to talk to these people.

- Source, Marc Faber via Market Watch

Monday, August 4, 2014

I See the Global Economy Weakening

When I travel and look around economies, I don’t see the global economy strengthening, I see it weakening. In Asia, we don’t have a recession per se, it is just economic growth has slowed down meaningfully or there is no growth at all .

We are now in the fifth year of an economic recovery which began in June 2009 in the U.S. and we’re more than in the fifth year of a bull market that began on March 6, 2009. This is a very mature economic recovery...it would seem to me that the monetary policies that central banks pursue are negative for economic growth, but they are positive for asset price increases. As a result of asset price increases, lots of goods have become unaffordable for the typical household.

- Source, Market Watch

Saturday, August 2, 2014

Financial Media Doesn't Believe a Market Correct Can Happen

Since 2012, I have been expecting a correction that hasn’t happened, but it has happened in individual stocks, and it has happened in emerging economies. A 30% [drop] would not surprise me, but the financial media doesn’t believe it can happen. When the S&P was at 666 on March 6, 2009, they didn’t believe the S&P would go to 2,000 either.

The market is very overbought. The rise this year has been accompanied by fewer and fewer stocks making new highs. GE, GM, IBM, Wal-Mart, are no longer participating in the advance. [but] if stocks went down 30% I’d be interested again.

- Source, Market Watch

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