Marc Faber Blog

Thursday, November 27, 2014

Marc Faber says Asian countries to remain relatively peaceful

Basically I always own some shares, most of my share holdings are in Asia. 

I would like to point out something, the Dow Jones is flat for this year. In Asia, the Indian market is up 22 percent year to date. The Thai market is up 20 percent in dollar terms, Jakarta is up 24 percent. Philippines up 18 percent, Karachi up 17 percent and so forth. 

I worry about the geopolitical tensions but in general I think all the Asian countries are today so China-centric that there wont be a military conflict, there will be rattling and disputes and so forth. But the US doesn't really have the power to really wage a war in Asia, that we have to be very clear.

Tuesday, November 25, 2014

Entitlement programs in societies could create its own problems

Milton Friedman pictured with then President of USA - George Bush

We have an entitlement society. Milton Friedman wrote about this – the more you give to people, essentially the more poverty you create.

It's interesting. I just read today a survey of the army. Apparently, 70% of the people who apply to join the army in the US are rejected because they're useless. They're useless. You can imagine – the army doesn't have the highest standards, they're not the standards of Goldman Sachs. 

If 70% of the people there are rejected you can imagine how many useless people there are. I'm not singling out the US in this respect; this also happens in other countries.

Monday, November 17, 2014

Astute investors should hold their own Gold

I believe that smart investors need to have their own gold reserves. I would never trust anyone to hold these gold reserves on my behalf because they can lease it out or they can sell it.

Wednesday, November 12, 2014

Marc Faber on Workhorse vs Showhorse stocks

For the benefit of our readers [attached] explains James O’Shaughnessy’s investment strategy. It concluded that high price-to-sales stocks do well in frothy, speculative markets (such as 1967 and the late 1990s) during which performance oriented fund managers are willing to pay any price for ‘concept’ and ‘New Era’ stocks (this is now also the case). 

Their subsequent performance however, tends to be dismal - this particularly true when compared to low price-to-sales stocks. O’Shaughnessy further noted that it was more profitable to “choose stocks that are workhorses rather than showhorses.”