Monday, March 30, 2015

Faber Warns : The Middle East will Blow up

ET Now: You have said that one should always bet on mega trends, bet on the big picture. So what are the three mega trends for this decade?

Marc Faber : We are half way into the decade, there are only five years left. As I told you, I personally do not rule out that the US stocks could go up somewhat more, but if you take a 5 to 10-year view, the investors will make more money in emerging economies than in the US. I believe that geopolitical problems are here to stay. I also happen to believe that the Middle East will blow up and whereas everybody was very positive about oil when it was trading around $100 a barrel and above. The same analysts now think it will go down to 20.

My guess is that the price of oil has an equilibrium price of between $40 and $60 and it will settle around that level eventually. Can it drop to $20 for a few days? Yes, it dropped to $32 in December 2008, but then rebounded very strongly. So a lot of things can happen. I would also say that the Chinese stock market, which performed even worse than India after 2006 relative to global markets, bottomed out last summer and we had a huge run-up in prices in the last three-four months of about 50% on the Shanghai A Index. A correction is due, but I believe that China will also join the club of money printers.

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.

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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.