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

Thursday, July 31, 2014

Marc Faber, aka Dr. Doom, Sticks to Stock Swoon Call

They call him Dr. Doom, and he likes that label just fine. It also fits with the renowned Swiss investor’s unwavering belief that U.S. stock markets are headed for a 30% decline sooner or later.

Marc Faber, the editor and publisher of the “The Gloom, Boom & Doom Report”, is among a handful of doomsters who have been predicting a correction for stock markets. And with the S&P 500 index SPX +1.02% up more than 6% this year, grinding its way through year five of a bull market, those calls are hardly being ignored.

Faber’s call is among the most dramatic and he tends makes the headlines when he opens his mouth. He has been expecting a big pullback since 2012 and recently predicted to CNBC a rout like 1987, when the Dow industrials dropped 22.6% in a single day. Not everyone agrees with him, of course. Jim Paulson, chief investment strategist at Wells Capital Management, last week predicted a pullback for this year, but also a multiyear run for this bull market. Goldman Sachs raised its S&P target to 2,050 from 1,900 on Monday.

Among the stocks that Faber does find attractive are commodity-related issues. In his July newsletter he highlighted gold and silver-mining shares as among the very few sectors that are “extremely depressed and offer an opportunity for potentially very high capital gains.” Oil stocks got a nod on the view the Fed and other central banks will speed up money printing if the economy or markets begin to weaken, also good for gold.

Separately, Faber said momentum stocks like Twitter Inc. TWTR +0.47% and Veeva Systems Inc. VEEV -0.10% are back to being potentially good short calls, as was his stance earlier this year.

- Source, Market Watch

Monday, July 28, 2014

Marc Faber, Schiff, and Gartman Talk Markets


Bubble fears go mainstream. A battle of the bears, with The Gloom, Boom & Doom Report's Marc Faber, Peter Schiff of Euro Pacific Capital, and The Gartman Letter's Dennis Gartman. With CNBC's Jackie DeAngelis and the Futures Now Traders, Jim Iuorio and Scott Nations, both at the CME.

Saturday, July 26, 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.

- Source, CNBC

Thursday, July 24, 2014

Has the Boat Left the Dock for Gold?

“I don’t quite understand why anyone would be disillusioned by the movement in the gold price,” Faber says. But has the boat left the dock for gold? “In my view, there is no dock anymore because we have a money printing environment so we don’t really know where to park our boat or car,” he says. Faber comments on the recent Chinese gold scandal, tensions in the Middle East as well as central banks policies ahead of the much anticipated ECB meeting on Thursday. Perhaps deflation isn’t even as much of a threat that so many analysts make it out to be?

- Source, Kitco News

Tuesday, July 22, 2014

Stocks Could Crash 30% Because Obama's A Very Poor President


"There is a colossal bubble in all asset prices and eventually it will burst," is the subtle recurring message from The Gloom, Boom, & Doom Report's Marc Faber, warnings that "maybe has begun to burst already." While Faber admits he has called for such a correction previously, he notes that the difference now is that "valuations are so much higher; and contrary to what the mainstream economists believe, I don't believe the global economy is strengthening; in fact I believe it is weakening." Furthermore, while "you never know what will trigger for a bull market or bear market is until after the fact," Faber offers 3 factors (aside from the Fed) that could trigger a 30% crash or more... beginning with "a) In The White House we have a very poor President - which will lead to political issues domestically in the US," which are not priced in.

- Source, CNBC

Sunday, July 20, 2014

We're Entering a Bear Market

Faber has long been expecting a market decline. But for the precise reason that stocks have simply continued to rise, he's now become even more bearish.

"Obviously I've been wrong in the sense that I expected a correction to occur over the last two years, and it hasn't happened since October 2011, when the S&P was at 1,074. We've gone up in a straight line, without a larger correction than 11 percent, and I think we're not going to have a correction, but we're going to have a bear market," he said.

The first issue is that, Thursday's big jobs number aside, Faber doesn't believe that the economy is actually improving.

"I don't believe that the global economy is strengthening; I rather think the global economy is weakening," he said. And "there are other issues that may put the weight on the markets that will push prices lower. A, I think that we have in the White House, a very poor president, and that may lead to some political issues in the U.S. domestically. B, we have numberous political issues to consider, And C, we could have, potentially, a much higher oil price."

All in all, Faber is looking for a 30 percent drop in the S&P 500.

Meanwhile, it is worth nothing that while few are as bearish as Faber, several strategists have similarly been calling for a correction.

Jeffrey Saut, the generally bullish chief market strategist at Raymond James, called on Monday for a "decent pullback" in mid-July or early August. And Canaccord Genuity chief equity strategist Tony Dwyer, who has the highest year-end S&P target on the Street at 2,185, continues to foresee a 5 to 10 percent correction in the near-term.

- Source, CNBC


Friday, July 18, 2014

The Asset Bubble Has Begun To Burst


It's the question investors everywhere are wrestling with: Are asset prices in a bubble, or do they simply reflect the fact that the global economy is growing once again?

For Marc Faber, editor of the Gloom, Boom & Doom Report, the answer is clear. In fact, he says the bubble may already be bursting.

"I think it's a colossal bubble in all asset prices, and eventually it will burst, and maybe it has begun to burst already," Faber said Tuesday on CNBC's 'Futures Now' as the S&P 500 lost ground for the second-straight session.

Wednesday, July 9, 2014

Unbanked Developing World Not Ready for Bitcoin


Marc Faber in the latest Squawkonomics interview talks about Bitcoin IPOs in Developing Countries, and Developing Countries Usage of Bitcoin. Marc also talks about Buying Houses with Gold in Vietnam. Keith Hilden of the Squawkonomics team also talks about his on the ground experience during the Vietnam bank runs of 2012.


5 Women Who Made Me Rich and What They Can Teach You

Monday, July 7, 2014

Europe Would Struggle If ECB Doesn't Ease


Marc Faber, publisher of the Gloom, Boom & Doom report, talks about European Central Bank policy, the global economy and investment strategy. Faber speaks with Tom Keene and Adam Johnson on Bloomberg Television's "Surveillance." Ralph Schlosstein, chief executive officer of Evercore Partners Inc., also speaks.


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