Wednesday, November 3, 2010

Markets Reaction to Fed Decision

Nov. 3 2010 | CNBC's Rick Santelli discusses how the market reacted to the Fed decision, with Bill Gross, PIMCO co-founder; Kenneth Heebner, CGM Realty Fund; and CNBC's Bob Pisani, Erin Burnett and Steve Liesman.

Marc Faber still positive on Crude Oil

Marc Faber :.....I am still positive about oil and I am aware that some analysts predict oil prices to drop to $30 and copper prices to drop 70%, but the fact is simply the oil demand now-a-days in emerging economies exceeds for the first time in the history of capitalism. The oil demand in the developed world and this oil demand in emerging economies will continue to go up. So the demand side looks quite strong.
On the other hand, you have prices between $70 and $80 and someone could argue well that that is a very high price and so maybe prices will temporarily decline - that may be the case. But I would like to point out that for any oil company to go and explore and drill for new oil, the oil price has to be around $70. Otherwise, they would not do it because the marginal cost of new production is around this level.
Secondly, unlike say a farmer who harvests, oil is a finite resource in the sense that once you pump it and you burn it, it is no longer there. The farmer can harvest his crop every year again and again and again. In the case of oil, once you pump it, it is gone and you use it. So in most countries, oil production is going down and oil reserves are going down. In other words, the world will hit one day peak oil, the way the US hit peak oil in 1970. So the dynamics between the demand and the supply side look actually quite promising in the long run.
Marc Faber in an interview with the dated 28 Sep, 2010

Dr. Marc Faber Tomorrow's Gold

Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.

Dr Faber studied economics at the University of Zurich and, at the age of 24, obtained a PhD in economics. He publishes a widely read monthly investment newsletter The Gloom, Boom & Doom Report, which highlights unusual investment opportunities, and is the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Tomorrow’s Gold was for several weeks on Amazon’s bestseller list and has been translated into Japanese, Korean, Thai and German. A regular speaker at various investment seminars, Dr Faber is well known for his contrarian investment approach. He is also associated with a variety of funds.