Friday, May 31, 2013

Marc Faber on Investment Newsletter business

In general, the newsletter business is not a particularly good business any more. For me, it’s still a good business but we have a lot of competition [with] free newsletters.

An investor wants to be informed and can get precisely the same­ information I have [in my newsletter] all free of charge.

Wednesday, May 29, 2013

Bonds can be similar to equities in stock crash

In 2008 when the sharemarket went down by 50 per cent these bonds also got hit because the spreads widened. These corporate bonds have an equity character; they’re not pure.

Tuesday, May 28, 2013

Marc Faber on Investment patience

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’.

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.

Monday, May 27, 2013

Marc Faber bullish on Vietnam stock market

There is an opportunity in the Vietnamese share market despite some mistakes made by the ­government since the country was opened up to the West about 10 years after China.

I don’t think the market will run away right away but if you take a long-term horizon, five to ten years, I think you will make some money in Vietnamese shares.

Saturday, May 25, 2013

Marc Faber loves Chang beer

I drink Chang beer here in Thailand. It has an elephant on the can, and it belongs to essentially one of the richest Thais. I think he[Chang] makes very good beer. I’m very much involved in lifting beer glasses.

Friday, May 24, 2013

Marc Faber on Vietnam opportunities

In Vietnam we also have some involvement in real estate – in hotels and land developments in the Danang area. Danang is midway between the north Hanoi and the south Saigon on the coast, and during the war used to be the largest American airport outside the US. That whole coast is called China beach. . . the development is really mind boggling.

Thursday, May 23, 2013

Marc Faber - Mining is a tough business

I’m on the board of some mining companies. They’re always optimistic about the price of copper, the price of gold and the outlook for mining.

As a director of these companies I can tell you mining is a very, very tough business. Extremely difficult. You have to deal with finding resources, exploiting the resources, and then comes the big question mark, the environmentalists, the government, expropriations and increased royalties. These are all huge risks.

Wednesday, May 22, 2013

Marc Faber on Australia investing:

Have been moderately positive about Australia for years thanks to the resources boom but 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.

Tuesday, May 21, 2013

Marc Faber on Australia boom bust economy

Australia has always been a boom-bust economy and probably always will be. It’s no use producing cars in Australia because the market is small and the labour cost relatively high.

Monday, May 20, 2013

Marc Faber expecting markets to come down one day

The creation of liquidity has badly distorted the way assets are priced.

Maybe the US market will continue to go up. But obviously one day, the markets will come down again and then the impact of declining asset prices on the economy will be interesting to see.

Sunday, May 19, 2013

Marc Faber on market trends

As I mentioned before, you don’t know exactly where markets will be in a year’s time. So at times you catch a trend very well and other times you’re not doing particularly well.

Friday, May 17, 2013

Marc Faber advises Gradual gold accumulation

Investors should be their own central banks and gradually accumulate gold reserves as a currency, rather than speculating in gold.

Thursday, May 16, 2013

Best currency is Gold and Silver

I still believe the best currency is gold and silver, and this is not the perception of most people. They believe gold and silver are speculative investments.

Wednesday, May 15, 2013

Capital protection will gain importance

On the topic of future gains for the wealthy:

Questions about which assets will decline less than others will become more important and replace the current search for assets that are likely to appreciate the most.

Tuesday, May 14, 2013

Marc Faber: Something will break very bad

In the 40 years I’ve been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality.

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.

Monday, May 13, 2013

Stocks could crash this summer 2013

What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent?

We don’t know these things ahead of time, but something will always move markets up and something will always move them down. I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. .... Something could come along, geopolitically or otherwise.

I would be very careful being overweight equities. I still have 25 per cent in equities and 25 per cent in corporate bonds.

Friday, May 10, 2013

Marc Faber: I bought more Gold at $1400

Nobody knows whether it’s a good time to buy gold or not…as I have repeatedly said in my reports, I buy gold every month and on the recent decline I bought more at $1,400 and I have an order at $1,300 and one at $1,200 and one at $1,100 an ounce. But they were not filled, just the $1,400.

I will never sell my gold, as I repeatedly told people. My maximum allocation to gold at present time is 25 per cent of assets.”

Thursday, May 9, 2013

Dr Marc Faber: Canada is getting expensive

I think Canada is a case where you have huge leverage in the private sector and where the economy is slowing down, where you have a strong currency and where the price levels are now relatively high. I don’t think Canada is very inexpensive any more. I travel there all the time, it’s rather on the expensive side. I think there’s significant risk to the Canadian economy.

In addition, 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].

Wednesday, May 8, 2013

Wealthy could lose half their wealth

Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or a credit market collapse. Maybe all of it will happen, but at different times.”

People may lose up to 50% of their total wealth. They will still be well-do-to. Instead of having a billion dollars they will have five hundred million.

Tuesday, May 7, 2013

Marc Faber on China Soft Landing

Everyone is talking about a soft landing of China through a managed deflating of the bubble. If there are signs of a crash, we can almost certainly expect a massive liquidity infusion into the economy.

Monday, May 6, 2013

World to face violent business cycles

The world economy is nowhere near to achieving stability, but could face more violent business cycles, largely resulting from government intervention in financial markets.

So far, governments in the developed world have been addressing long-term structural economic problems such as low economic growth and persistent unemployment with short term fixes, largely through big doses of liquidity.

Friday, May 3, 2013

Marc Faber CNBC Interview humour

"The End is Near" - Just joking

Thursday, May 2, 2013

Marc Faber: Gloom Boom Doom - Market Commentary - 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?

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Wednesday, May 1, 2013

The purchasing power of money has diminished very significantly

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.

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.