Marc Faber
Faber said that he is ‘very happy. Very good for the Fed. Congratulations, Mr. Bernanke. I’m happy. My asset values go up but as a responsible citizen I have to say the monetary policies of the US will destroy the world.’
Faber on more Federal Reserve stimulus:
‘It is difficult to tell what will happen. I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer.
‘And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don’t like bonds. I don’t particularly like equities, but I think equities are a better space to be in than bonds.’
On what he will do with his portfolio in reaction to yesterday’s move:
‘I own corporate bonds and I recently, as I wrote, I pulled some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country. But it is in small doses. I wouldn’t put all of my money in corporate bonds. They have an equity character. I also own equities still in Asia and as I pointed out already four months ago for the first time in my life I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed.
‘I think what people overlook today is they look at markets but they don’t look at what happens within the market. In the last 12 to 18 months the U.S. has massively outperformed European markets, Asian markets with a few exceptions and now some markets are relatively depressed. I could argue the Chinese stock market is now relatively depressed. So the asset allocators may move some money in Chinese stocks and then they can rally 10 to 20 per cent.’
On where gold prices are headed:
‘I think that the trend for gold prices will be steady, but the trend for the dollar and other currencies will be down. In other words, in dollar terms the price of gold will trend higher. How high it will go, you have to call Mr. Bernanke and at the Fed, there are other people actually that make Mr. Bernanke look like a hawk. So they are going to print money. And they have done it for ages already and where has it led?
‘To record high unemployment essentially since the Great Depression and structural unemployment. Unemployment goes among low paying jobs, not high paying jobs. So, you ought to own some gold, but don’t store it in the U.S. because the Fed will take it away from you one day.’
On whether he would buy property in the United States:
‘Yes. Property prices in the south of the US are very inexpensive compared to property prices around the world. The tragedy is that the people that were evicted from these homes have no access to credit. They have no money. They can’t buy them. So, with easy money by the Fed well-to-do people can buy these properties and then rent them out to the people that were kicked out of these homes. What a great achievement of the Fed.
‘First they create the property bubble and destroy the wealth of poor people, then the poor people have to rent and the rents have been up over the last 12 months. What a great achievement. Thank you, Mr. Bernanke.’
I just want to have a lot of cash because I think that within the next six to nine months we can buy just about anything 20 percent lower than it is now. – in CNBC
If I had to really choose something, I might go for a rebound in Chinese stocks. – in CNBC
Basically, I think QE3, which I think is unlimited, and bond purchases by the ECB bailout of countries have been largely discounted by the market, and the markets have been weaking technically, so I believe that we may have here quite a serious setback. – in CNBC
Otro que empieza con la Agricultura y las granjas!
The history of the human race is a history of war. And the next war may not be groups of tanks facing off with one another. I can imagine that London’s water or electricity will be cut off. Or, the system of internet connections…or the electronic banking system… will be shut down.
We all depend on those things much more than we realise. Society has become very complex and very interdependent. A breakdown anywhere could mean a breakdown of the whole system.
That’s when you’ll wish you had followed my advice and gotten a farm where you could be more or less self-sufficient… at least for a while. That could be the most important investment you ever make. – The Daily Reckoning
Sobre China, Japón y Grecia:
The Chinese economy is slowing down rapidly. In my opinion, it is not growing at any more than 4 percent now. The market was at 6000 in 2007, and today we are down to around 2000.
Clearly, the market has already discounted a lot of bad news and if a junk country like Greece could rally from the lows of 65 percent, we can expect a trading rally in China of 20-30 percent over the next 4 or 5 months.
Additionally, the Japanese Yen has begun to weaken and that should be a positive trigger for Japanese equities. – in Economic Times
Sobre la ruptura de la Eurozona:
I do not think it will happen right away because the politicians want to keep the Eurozone intact, but the situation in Portugal, Greece, Spain, Italy and even France is actually unsustainable in the long run because of the unfunded liabilities. So a Euro break up will probably happen sometime in future, but not for another three or five years. – in Economic Times
Sobre los mercados a corto plazo:
We have peaked out recently a couple of weeks ago and we are in a downtrend. Eventually, the markets will be down 20%, but will be oversold in about 10 days’ time to two weeks’ time. So there can be a year-end rally, but certainly no new highs in the markets. – in Economic Times
Bulish on southeast Asia: In this "Squawk Box" excerpt, Marc Faber of the Gloom, Boom & Doom Report, says there is one area of the world that he is optimistic about.