Sunday, July 20, 2014
Marc Faber : Obama is A Very Poor President
"There is a colossal bubble in all asset prices and eventually it will burst.. and maybe has begun to burst already"
"We are not going to have a 'correction'; but we are going to have a bear market"
"You never know what will trigger a bull market or what will trigger a bear market - you only know it after the fact"
"When markets peak out, nobody can believe that it could go down and we have an environment where everybody puts their faith in central banks printing money - and therefore asset prices cannot go down"
"I look for 30% - if you can't buy something with the expectation that it could drop 30% then don't even get out of your bed in the morning because we have within markets now a lot of volatility" - no matter how obscured it is by the VIX.
While Faber admits he has called for such a correction previously, he notes that the difference now is that "valuations are so much higher; and contrary to what the mainstream economists believe, I don't believe the global economy is strengthening; in fact I believe it is weakening."
Analysts are all bullish for the next quarter's earnings but as Faber says "I have never met an analysts who predicted a downturn in earnings"
The fact is simply, he notes "earnings have been boosted by stock buybacks not by revenue growth and earnings are grossly inflated due to artificially low interest rates... don't rely on analysts expectations as of today."
Faber thinks there are other factors that could drive prices down aside from a Fed that raises rates sooner rather than later (which he doesn't expect)>
a) In The White House we have a very poor President - which will lead to political issues domestically in the US (which are not priced in);
b) we have numerous geopolitical issues to consider (that are not priced in); and
c) We could have potentially a much higher oil price (which is not priced in )
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
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.