Cheap in not always the best

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

In the world of investments people’s investment results would be better if instead of trading online day and night they would have a close relationship with a capable and honest financial planner who could provide them with advice and occasionally with a second opinion. 

What really amazes me is that people want to see the best and most expensive doctors (okay, the government or the insurance company pays), buy the highest quality products, but will use the cheapest possible way to transact and invest their funds. 

The journey along the investment road is an arduous one and it is very important that you have a good companion who comforts you when “bad luck” strikes and who is at the same time a reliable guide that helps you find the way. 

Less affluent investors will of course argue that the access to top financial advisors is only open to high-net- worth individuals. That is unfortunately the case and I wished I could change that because small investors need more help than already very well to do people. 

via marcfabernews.com

Gold is cheap and gold shares Inexpensive

I think Gold is good insurance. I think Gold shares are very inexpensive. So a basket of Gold shares I think next year could easily appreciate 30 percent. 

- See more at: http://www.marcfabersblog.com

Faber continues to be harsh on the Fed

  QE will never end.

 

King World News interviews Dr Doom

World to be destroyed by banks: Marc Faber Interview

CNBC interview from Marc Faber

Fed can continue to intervene in Financial Markets

The Fed could go into the market and buy the whole S&P 500 even if the market drops by 20 percent it is not cheap. The Fed would have to borrow money or issue money but basically they can do it. It has happened before. In Hong Kong in 1997, the government came in and bought the stock market but at that time it was cheap. 

Via http://drmarcfaber.blogspot.com

China bubble burst to have devastating impact

I'm not overly negative in the Asian regions but if a bubble bursts in China it would have a devastating impact on the surrounding countries.

Most of the Asian economies are not growing much. Over the last 5 years, everywhere in Asia, the household debt as a percent of the economy has exploded, in other words a lot of growth was driven by unsustainable credit growth.

The household debt levels are relatively high, the asset prices are high, the affordability of buying homes has diminished and many countries have had currency weaknesses and their currency account surplus has turned to deficits.

Marc Faber on Copper, Oil, Iraq Stock Market

Faber comments on Copper and Oil:
"Copper could go down to 200 - 250 cents a pound. However oil will not drop to $30 a barrel."

Faber invests in Iraqi stock market:
"2 years I invested in Iraq stock market. The Iraq stocks are very cheap and the stock market could go up 100 percent."

Faber on Syria and Assad

I'm not defending Assad but he was better than his father and probably he is the better option than opposition leader and Al Qaeda units.

White elephant Investments

Every bubble will create some “white elephant” investments (investments that don’t make any economic sense under any circumstances), in financial economies’ bubbles, the quantity and aggregate size of “white elephant” investments is of such a colossal magnitude that the economic benefits that arise from every investment boom, which I alluded to above, can be more than offset by the money and wealth destruction that arises during the bust. 

This is so because in a financial economy, far too much speculative and leveraged capital becomes immobilized in totally unproductive “white elephant” investments.

Markets about to crash like Titanic

Marc Faber video compares the Global stock market to the famous ship Titanic.

Marc Faber on Singapore, Hong Kong, Vietnam, Tech stocks, USA

Marc Faber says Singapore, Hong Kong not growing and the cost of living has gone up.
"Kicking the can down the road, each time they kick they hurt their foot a little bit more."

Additonally Dr Faber asks, why do product prices in Singapore, Hong Kong more than in US ? Watch the interview below to hear his take on that question and much more.

Marc Faber cautions economies not growing

The U.S. is hardly growing. Growth came from emerging markets and these emerging economies are essentially today in a no-growth environment. 

I live in Asia, so I am quite familiar on my observations on the ground. We have no recession that is visible. It is often seen like a pain. But we’re just at the high level of economic activity; no longer growing.

Read full text at Marc Faber Blog

Extreme Wealth & Income inequality is not good

"There is benign envy, which motivates you to be better than the person you envy. And there is malicious envy that makes you want to take them outside and do something unspeakable to them."

- Lucy Kellaway



There are several reasons why I am bringing up the envy and jealousy issues here: First of all, if you are strongly inclined to these emotions you will suffer all your life working in organizations, which are a breeding ground for jealousy and envy. You will lead a much happier life working on your own or managing your own business.

Secondly, what is frequently overlooked is that envy also arises because of a sense of fairness, justice, and impropriety. In a society, envy also comes up if some people benefit greatly from some economic policies, but at the cost and the detriment of the majority. Therefore, once again, I am touching on increasing wealth and income inequality and its impact on the economy and on society.


Read Full Text at Marc Fabers Blog

Who is Marc Faber ?

Dr Marc Faber also known as Dr Doom is a world renowned investor and publisher of the Gloom Boom and Doom report. He is well known for correctly predicting many stock market moves and his honest approach to the markets. Contrary to his nick name, he is also bullish at times.

US current account and trade deficits

With all the unprecedented large amount of money printing by the US government, you would think that everyone in the US is now "wealthy". Far from the truth, the average person on the street has seen little to no benefit from the money printing program.

Marc Faber argues that the money printing has instead helped people outside the US and in emerging economies such as China. 
"Money printing has been beneficial to people with money in emerging economies because a lot of funds flow into emerging economies due to the huge U.S. trade and current account deficits and it has been rather detrimental to the middle class and the working class because their costs of living have risen more than their wages."

No safe haven, government wants to spend money

source: Gloom Boom Doom 

Most important question to ask is .....

Marc Faber was asked in a recent interview of what is the most important question that should be asked right now in Wall street.

"Well I think we have unprecedented government interventions with fiscal and monetary policies. For me it’s not really a question, it won’t work but miracles do happen, and maybe based on the bailouts and huge monetary inflation that the central bankers have created, maybe it is possible that the financial system heals and that the global economy resumes a, say, trend line growth such that we had in the 90’s and the early parts in 2000 and 2005. But I very much doubt that."

Market nearing peak

Every bull market must end at some point and the US market has rallied hard the past year. If you believe the market may have peaked momentarily, you have company in the name of Dr Faber.

"We are in a bull market that is in the tail-end instead of the beginning but that does not mean prices will collapse. I don't think that stocks are the greatest bargain anymore."


Read the full text at Marc Faber blogs

Balance your approach and diversify investments

I recommend the investors to take a balanced approach to invest in equity, corporate bond, real-estate and gold.

Read Full text at http://drmarcfaber.blogspot.com/2013/09/balanced-approach-to-investing.html

Be ready

If you have followed the Emergency Preparedness and Disaster Survival Readiness Pyramid starting from the bottom with water storage and 72 hour emergency kits, and you have progressed through each level making sure your preparation is as tight as a pyramid at Giza (with no space to slip even a thin postcard through the cracks), you have made it all the way to storing a sufficient supply of personal hygiene items. You are now ready to extend your efforts into the financial area of preparedness. This category includes accumulating a three to six month supply of cash flow for living expenses, and should lean more toward the six than the three.

Fed failed to lower interest rate

The bond market has peaked out a year ago at 1.43% at the 10 year treasury note. Mr Bernanke said at that time at a press conference the objective of the fed is to lower interest rate. Since then they have doubled.

Via Marc Faber

All governments lie

The US money-printing has distorted all asset prices while cash in the bank has not given you any return when inflation is adjusted. I don't look at the government's statistics. All governments around the world lie.

Fed expected to taper this week

I think maybe they [FED] will taper 5 or 10 or 20 billion dollars off the current $85-billion monthly purchase of assets, and they would say they will reassess the situation depending on economic and market conditions.

source text at http://drmarcfaber.blogspot.com

Marc Faber says Indian stocks are in buying range

Dr Faber on his blog says that Indian stocks are in buying range.

In my view, there has been a huge correction in Indonesia and Thailand from the recent highs. The market is down by around 30-35% from the April-May high, but following a rebound, we will see further weakness.

Indian stocks, because of the currency weakness, have already experienced a very substantial bear market. It may last a little longer, but we surely are coming into a buying range.

Marc Faber Gloom Boom Doom interview

Marc Faber says to invest in gold disciplined approach

I have a disciplined approach to my asset allocation, whereby I would not invest more than 20-25% in gold.

I have repeatedly stated that I will buy gold. I expected this correction and I would buy gold at $1300 an ounce and then at $1200 an ounce and then at $1100 an ounce. But

Marc Faber says "I keep buying gold regularly"

Dr Marc Faber is a buyer of gold and suggests that Gold is a bargain at current levels.

"It is possible Gold goes somewhat lower, but having declined from $1921 to $1232, I think gold is now at a reasonable level and I keep buying gold regularly. I have faith that eventually Gold prices will be higher."

Gloom Boom Doom Report July 2013

The current mantra of “selling” emerging markets and “buying” the US is likely to disappoint even if the US stock market continues to outperform. After all, the out performance may arise from US equities declining less than emerging stock markets. In this context, I should like to point out that the late May/June sell-off has been extremely benign by historical standards and that far more downside volatility is likely to occur in the months ahead.

Read Full Text at Marc Faber Blog

Markets could fall 20 to 30 percent

Stock markets are oversold in the next ten days on a very short term basis, not just in the US but in other countries as well. The S&P could rebound to 1630 - 1640. 

The highs from May was 1687 and the markets could correct 20 to 30 percent from those highs.

Faber wants to thank Ben Bernanke

I own equities, and I should thank Mr. Bernanke. The Fed has been flooding the system with money. The problem is the money doesn't flow into the system evenly. It doesn't increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market—things like stocks, bonds, art, wine, jewelry, and luxury real estate. The art-auction houses are seeing record sales.

Read full text at Marc Faber blog

Dr Marc Faber likes Vietnamese shares, emerging markets

Marc Faber is thinking about buying Vietnamese shares and also at some point Chinese shares. The good companies in China are also expensive, they are not cheap. 

Dr Faber also talks about his recommendation last November. I said "buy Japanese shares". Since then Japan is up more than seventy percent. He adds "I want to buy more Japan on a setback."

Marc Faber Update: I would take the short side if necessary

There are still stocks that show strength that could continue to appreciate. That momentum could bring a new high possibly around 1700. I wouldn't bet on it. If someone put a gun on my head and said you have to be long or short, I would take the short side.

Investors should learn to be patient

I always tell people if you want to be a successful investor you also have to have some patience and you can’t measure your performance according to an index. 

If a year ago I told you ‘look you should buy some Japanese shares’, then for nine months you would have complained and said ‘look I bought ­Japanese shares and they never move, and all the other markets are moving up’.

Marc Faber cautious on Australia

Dr Marc Faber of the Gloom Boom and Doom report is said to be moderately positive about Australia for years thanks to the resources boom but is now concerned of a huge credit bubble on the household level. These debts will be a burden for years to come.

Once you are so heavily indebted, then obviously your consumption will grow at a slower pace.

Marc Faber comments on Asset market breaking bad

Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up.

Something will break very bad.

Read full text

Canada has also higher levels of household debts than in US

Canada has also higher levels of household debts than in US. With the higher leverage in Australia and Canada, I think I’d be very careful about any lending institution [in Canada]

Read full text at Marc Faber blog

Gloom Boom Doom report - May 2013

First, I am discussing capital flows and the general belief among some economists that trade and current account deficits do not matter because the money flows back in the form of investments in equities, bonds, real estate, direct investments, and corporate takeovers.

According to Barron’s Big Money Survey, “74% of large portfolio managers are bullish about stocks, which is the Highest Level Ever.” Time to be a contrarian?

I am reluctantly maintaining an approximately 25% weighting in equities (mostly in Asia and in Europe) and I have not yet shorted any stocks because I have learnt that a bubble can get bigger still and exceed my expectations - before it implodes violently.

I want to make clear that I own equities not because of the belief that they are inexpensive and that they will move up substantially but because I do not trust the banking system and, therefore, I do not wish to be overexposed to bank deposits.

Finally, has gold completed its correction and are we entering another major advance as the gold bugs tell us, or are we at the beginning of a major gold bear market as the bears want us to believe?

being in cash and government bonds is not a protection

The central banks around the world gone the path of money printing and once you choose that path you’re in it, and you have to print more money.

If you start to print, it has the biggest impact. Then you print more - it has a lesser impact unless you increase the rate of money printing very significantly. And, the third money printing has even less impact. And the problem is like the Fed: they printed money because they wanted to lift the housing market, but the housing market is the only asset that didn’t go up substantially.

In general, I think that the purchasing power of money has diminished very significantly over the last ten, twenty, thirty years, and will continue to do so. So by being in cash and government bonds is not a protection against this depreciation in the value of money."

Asia looks like a good bet

 I’ve recently been on to Vietnam, Cambodia, Laos, of course Thailand, because I have a house there, and Myanmar. that whole region is known as Southeast Asia, and I think that region of 250 million people will continue to grow regardless because you have a relatively high GDP per capita in Thailand, maybe 3,000 or 4,000 US Dollars, and the surrounding countries GDP per capita less than $1,000. And these countries are opening up now, and I think with the trade links and transportation links that are being expanded regardless of what happens in the world, can grow. Provided there is geopolitical stability in Asia which is a big question mark. 

Dr Marc Faber on owning Gold

Owning gold is should be viewed as the ultimate  insurance policy to cover financial calamity.

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.

Deflation in the system

With the recent commodities falling apart, oil, grains, including Gold. At the same time we have bonds rallying very strongly.

This implies there are deflationary pressures in the system. If that was the case, I wouldn't buy stocks, or sovereign bonds. The stock markets would be hit by disappointing profits if there was a deflationary environment.

North Korean tensions are a test

One should not believe the North Koreans are acting on their own. Its all a test to see the resolution by the US, Japanese and the foreign powers. The Chinese are watching as they will do the same in a few years.

North Korea can hardly produce bicycles. They cannot produce nuclear weapons on their own. They are getting outside help.

Source :
http://drmarcfaber.blogspot.com/2013/04/china-and-north-korea-conspiracy.html

Faber April 2013 Gloom Boom Doom report

 It should be obvious that if 80% of the population owns just 7% of financial wealth, they will be tempted to transfer at some point in future, part of the wealth of the 5% or 10% richest Americans to the masses that have no savings.

Read full text at his website at http://drmarcfaber.blogspot.com

Unintended consequences of bank deposit insurance

The MF global collapse had a negative effect on the depositors.

By having a deposit insurance consumers don't worry about which Banks and Institutions are safer. But without deposit Insurance consumers will be more cautious.

Via Faber Blog

Money printing is dangerous for the market

When money is printed it doesnt flow equally into the market. My concern is we are going to have a systemic crisis that will may not allow us to even hide in gold.

US Stocks are at risk

When asked about whether to buy US Stocks Marc Faber

I think US stocks wont go too much higher from here and there is considerable downside risks. Europe has current account surplus but their economy is in a recession and this will affect the US stocks as well. Bulk of the US corporations profits come from Europe. Also at the same time global liquidity is contracting.

Emerging markets good and bad

Emerging markets have to be looked at in a segregated way. Some of them have performed very well this year, and the markets like the Philippines, Indonesia, Thailand and also India performed well last year. Others have performed miserably like China and Vietnam.

So we have to look at each emerging market separately. I do not think that Cyprus has a large impact on emerging markets, but we have to see that the markets in general are overbought and any news, no matter how irrelevant it is, will have an impact and they lead to a correction or even a sharp decline.

China to deflate credit bubble

Whether China can ensure continuous growth will depend on reforms and how to deflate the colossal credit bubble we have in China.

This is going to be a huge problem because we have so much underground credit, questionable loans outstanding and questionable investments.

China economic growth lower than reported

Faber said China’s economic growth is probably much slower than official numbers suggested of 7.5 percent.

Faber worried but not short stocks

The equities I own, I bought in 2008 and 2009 in Asia.
The Philippines, Indonesia, Thailand, where I have most of my holdings, are up four or five times since then.

I'm not short stocks. But I'm very worried about it.

Gold to outperform stocks

On the current Gold correction.

I'd rather buy something that is relatively depressed than something that is relatively high.

Stocks will end up bad this year

Echoing recent comments made on CNBC by Stanley Druckenmiller, founder of hedge fund Duquesne Capital, Faber said "Druckenmiller is a very thoughtful person, and I share his views that it will end badly for stocks. But unlike Stan, I believe it will end badly this year."

China became big so quickly

When you have an economy like China that becomes so big so quickly, you can have a more meaningful setback. If the U.S. economy grows at 3% or contracts that 3%, it has no impact on the price of copper to speak of….In the case of China, whether the economy grows at 10% or 5% has a huge impact on the demand for iron ore and copper and aluminum, steel and coal.

The Chinese economy today has a much larger impact on the rest of the world than is generally perceived economically speaking.

Marc Faber not selling his gold

In my case, I’m not going to sell my gold unless I have to.  In other  words, everything else is bankrupt, bond market, stock  market, cash and real estate.

Gold inflation

I don’t hear about gold.  I lived through the last gold bubble between  1978 and January 1980.  The whole world, whether you were in the Middle  East or in Asia or Europe or in America was trading London gold, buying and  selling every day,” he recalls.  “This has not happened yet, and it hasn’t  happened.  Your friends, the deflationists, have been telling people that  gold will collapse to $200 an ounce for the last 10 years and that’s it was in a  bubble.

[They] said it [gold] was in a bubble at $500; they said it at $600, and  they’re still maintaining it.  So a lot of people they don’t own it; they  bought it and sold it again.  But in the meantime, gold has moved into sold  hands.

Gold can have strong corrections

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,” Faber said  forcefully, as he explained that owning gold is should be viewed as the ultimate  insurance policy to cover financial calamity.

Gold can be volatile & shake weak hands

The gold market can be extremely volatile, a normal  symptom of a fiat-backed financial system inducing the public into schizophrenia—of clinging to the familiarity of a 67-year-long financial system,  moving to periods of fearing total loss at the currency graveyard—will chase  investors out.

Related Symbols: GLD, SLV

Conflicts and market volatility

I think there will be on this continent (Asia) a lot of struggle over resources. We have to live with a lot of volatility

Gold investing for your children and future

On investing in Gold:

I would strongly advise you, for your children and so forth, don't keep your money in cash.

I'm not saying rush out the door and buy gold, I'm just saying that over time it's likely that, as has happened throughout history, paper money has always lost value.

China economic growth

I would assume that the Chinese economy will grow at a much, much slower pace in the next 10 years . . . and this will have an impact on the demand for raw materials.

Oil demand will be strong

I think oil consumption in the world will continue to go up, but for some industrial commodities like iron ore and copper, China has probably reached a level where demand may not contract, but won't go up dramatically.

repeat of 1987 ?

If the markets continue with a very strong rally into the summer, as was the case in 1987, I would expect a correction, a significant market decline.

In the short term there can be a small correction, but then a rally will probably lead to a more significant top in 2013 which will not be exceeded for a while.

China crisis money printing

On China being able to inflate their way out of an economic crisis:

I think they (Beijing) can again postpone a crisis, but this is probably the last time they can do it. After that, economic growth will come under a lot of pressure

China rising tensions

On the potential for rising tensions for valuable commodities and delivery routers:

What would you do if you were a military strategist in China and you knew all the oil (being imported into China) comes through the Straits of Malacca?

Turkey, Thailand short term overbought

 I would be careful of markets that have performed superbly last year such as Turkey and Thailand. They are in my opinion, becoming slowly overheated. I am not so sure to what extend India is overheated because currency adjusted, we are still way below the peak in 2007.

But, in general I would argue you should buy equities when everything looks horrible and when investors cannot see why the markets would go down.

That is the time to be careful because there is always something that will happen to send stock prices down.

Markets currently dependent on China

I think that the global economy will be crucial to what happens to China.

Do not forget, if the Chinese economy does not recover or recovers for a while, for say a couple of months and then slumps again or decelerates significantly, it would have an impact on raw materials and in this case on the economies of the raw material producers or the resource producers of the world.

We could have a shock for the global economy.

Market update

Stocks are up big to start 2013 but Marc Faber, Editor & Publisher of the Gloom, Boom & Doom Report, says it ends in tears.

"Either the market is going to correct more meaningfully now or we have a shallow correction and a continuously rising market until July or August," Faber told me via phone from Thailand. If stocks don't pullback soon, he says we risk a repeat of 1987 when stocks rallied 40% into summer only to collapse 41% in 2 months.

"In March of 2009 everything looked horrible, now nobody can find a reason why stocks could go down," Faber claims. "We ask that you should buy stocks when everything looks horrible, you shouldn't rush to buy them when everything looks perfect."

Market update

Stocks are up big to start 2013 but Marc Faber, Editor & Publisher of the Gloom, Boom & Doom Report, says it ends in tears.

"Either the market is going to correct more meaningfully now or we have a shallow correction and a continuously rising market until July or August," Faber told me via phone from Thailand. If stocks don't pullback soon, he says we risk a repeat of 1987 when stocks rallied 40% into summer only to collapse 41% in 2 months.

"In March of 2009 everything looked horrible, now nobody can find a reason why stocks could go down," Faber claims. "We ask that you should buy stocks when everything looks horrible, you shouldn't rush to buy them when everything looks perfect."

Market sometimes makes extreme moves

We have seen over 30 percent correction in Apple. So it is a reminder that stocks move up and they can also move down. My scenario for 2013 is either the market will make a peak relatively soon which will not be exceeded or we have a correction of a month or two and then another strong rally into August, such as we had in 1987 when the Dow Jones between January 1987 and August 1987 increased by 41 percent. However, it then lost 40 percent in two months.

Expecting a 10% correction

My scenario for 2013 is either the market will make a peak relatively soon which will not be exceeded or we have a correction of a month or two and then another strong rally into August.

Housing stocks are overvalued

Housing shares have rallied too much and are "ahead of the fundamentals, while miners look good at current valuations.

Marc Faber selling some shares

I am selling shares at the present time. I am reducing positions because there is euphoria building up.

You want to buy when people are fearful and sell into euphoria and bubbles.

We could see crash of 1987

We are very overbought, but it is also possible that we have a mild correction in February and then a further increase in stock prices," Faber said on CNBC.

It would be "something that would be similar to '87 where in the first half of the year until August the market went up by 41 percent (only) to lose 40 percent in months in October and November. So it's a possibility that we have a lot of volatility this year in equity prices."

Faber love markets setting for a big crash

For the first time in four years, since the lows in March 2009, I love this market because the higher it goes the more likely we will have a nice crash, a big time crash.

Stocks not cheap right now

The stock market is not that cheap anymore. Here in Asia we have many markets that are up 250 percent from the lows. That is not very inexpensive anymore. Let us put it this way...the stock market is discounting already a lot of the good news.

Markets will punish central banks worldwide

When you print money, the money doesn't flow evenly in an economy. It flows to some people or to some sectors first, and in this case, it flowed into equities, and until about five months ago, bonds… I believe that markets will punish central banks at some stage through an accident.

The bond market could collapse, and that could lead a stock market bubble.

Gold is a hedge for system crisis

I buy gold because I am fearful we will still have a systemic crisis.

Sell Apple on rebounds

I wouldnt buy Apple right now, I would sell Apple as it underperformed the market. Apple along with lot of tech stocks have significant downside risks.


Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Deflation in property, real estate, bonds

The market will probably not make new highs in US and some emerging markets in Asia. I don’t see the markets as especially attractive. Will they fall strongly? I don’t know but I wouldn’t disregard the possibility of them falling 20%. It’s not a lot 20%.

We could also see a deflation in property or in bonds as the yields are so low and the prices therefore so high.


Related Stocks: SPY, S&P500, FXI, PIN, DJIA

Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Hold european equities

Recently Marc Faber revealed that he still thinks European stocks can go higher. 'I still hold European equities and I believe that they were at the lowest level in this generation last summer. I should have also perhaps bought Greek equity.'



Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Gold is a safe investment for worst case scenario

At an event hosted by Evli Bank - Helsinki, Marc Faber spoke favorably about gold.
In the worst case scenario, in the systemic failure that I expect, Gold would still have some value.
When “the system goes down and only plastic credit cards are left, maybe then people will realize and go back to some gold-based system or such.

He added that he was so hyper bearish of your outlook and added, "Sometimes I’m so concerned about the world I want to jump out of the window.”


Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Marc Faber at 2013 Skagen Conference

At the recent 2013 Skagen conference in London Marc Faber reiterated his views that this year is likely to be a more difficult environment than 2012. Faber urged caution over China's growth outlook.

On his overall investment outlook he says ‘I’d be reluctant to be heavily short anything right now. For an investor, cash is not desirable but I would say that for the next 3 months it may make sense,’


Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Japan and Chinese stocks are good buys

We could see gains in equities in Japan and China as they under-performed last few years.
However there is potential for social unrest in countries such as Egypt and Ethiopia.


Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Gold could still weaken a bit

On the current Gold weakness, "I don't think gold will go up right away, and we maybe have a correction of 10 percent or so on the downside," "But I see that governments will print money … so I want to have gold as an insurance policy."

Based on his recent market commentary newsletter, Faber puts a price range on his gold call:
"... perhaps down to between $1550 and $1600 … I intend to increase my gold position on any further weakness although I am concerned that U.S. dollar strength could be a headwind for a strong gold rally."

Markets look slightly bearish right now

In his latest commentary Marc Faber suggests that the market looks slightly bearish but thinks that the markets could still rally easily because of high cash levels.

"I am mindful that corporations and wealthy individuals are cash rich and since there are very few promising investment opportunities aside from equities, they might one day shift their considerable liquid assets into stocks."

Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Hold a diversified portfolio of assets

If we hold a diversified portfolio of different assets - say properties, equities, bonds, precious metals, and cash - we can reduce the overall volatility of the portfolio somewhat.


Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.