Marc Faber Blog

Wednesday, October 1, 2014

Today's generation not as motivated to work as previous generation

I think we have today in the world an entire generation who no longer wants to wake up at 7:00 in the morning and go to work at 8:00 or 9:00 in the morning and then come home at 5:00 or 6:00 in the evening and be pushed around by a boss. 

There's a generation of people who would rather do relatively little. They may opt to live with their parents in the basement or wherever that may be, so they have no responsibility to pay the rent for a house or to buy a house. 

They may drive around daddy or mommy's car and so forth. 

So I believe we have a structural change where people actually prefer to not do very much.

Monday, September 29, 2014

Faber outlines reasons for diversification

We are in a world that is driven by money printing and, in general, I believe the standards of living for many people in the Western world will continue to decline as they have declined over the last 20 years, if we look at median income in real terms. 

How the world will look in 5 or 10.... you and I and nobody knows, although some people think they know. So my advice is to be diversified. Hold some real estate, stocks, bonds and gold and you have to also diversify your assets geographically – don't hold everything in the US. Hold some outside the US as well; hold some outside Germany, outside Switzerland. 

You have to be diversified. Then you have to hope for the best.

Wednesday, September 24, 2014

Coming crisis will be different from last

Margin Debt level is at very high as a percentage of stock market capitalization, its essentially up to 2007 high and we have of-course a lot of leverage in the government sector, we have a lot of leverage in the corporate sector. And unlike the crisis in 2007 - 2008 when at that time the recovery came in 2009 emerging economies had a lot of momentum and they were still buoyant in terms of consumer expenditures increases, and notably China was very strong.

Now the emerging market complex is slowing down and isn't going to grow nearly as much as everyone have expected. If emerging economies overall can grow next year at say 4 percent, that would be actually an optimistic scenario, I think it could be even lower. 

Monday, September 22, 2014

Marc Faber wants his investments diversified hoping to avoid huge losses

I have always argued that we don't know how the world will look in five years' time. Maybe the S&P is at 3,000, but it could also be at 1,500—we just don't know. 

There's a lot of manipulation through fiscal and monetary policies. So I want to be diversified. I want to own some gold, I want to own some shares. I own the most in Asia and some in Europe because I think in Europe they are still better value than in the US. And I own some bonds, cash and real estate. I hope when the collapse happens, I'm only going to lose 50 percent of my money.