Monday, March 25, 2013

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.

Wednesday, March 20, 2013

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.

Tuesday, March 19, 2013

China economic growth lower than reported

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

Wednesday, March 13, 2013

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.

Tuesday, March 12, 2013

Gold to outperform stocks

On the current Gold correction.

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

Monday, March 11, 2013

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."

Friday, March 8, 2013

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.

Thursday, March 7, 2013

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.

Wednesday, March 6, 2013

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.


Tuesday, March 5, 2013

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.

Monday, March 4, 2013

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

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