Saturday, May 30, 2015

Marc Faber Predictions: U.S. Stocks

 Overall, Faber remains bullish on U.S. equities, relative to fixed-income assets like bonds. The simple reason for this is that many European government bonds, including Switzerland, Germany, and Demark, have negative yields. The story is similar around the globe, with fixed income yielding investors close to nothing. (Source: PIMCO, February 1, 2015.)
A bond with a negative yield, or a negative rate of return, means that an investor who owns that security will lose money each year over the entire life of the bond. Faber does not want to lose money and therefore believes U.S. stocks will outperform government bonds, especially European government debt, over a longer horizon. This can take anywhere from five to 10 years. (Source: The Wall Street Journal, January 31, 2015.)
However, within the S&P 500, some sectors have moved much higher than others. For example, the NASDAQ Biotechnology Index has gained roughly 54% since the start of 2014, while the broader benchmark S&P 500 has only moved up 14%. That’s why Faber believes that for the first time since the 2007 to 2008 period, there are some select shorting opportunities. Faber hinted at the biotech and social media space as richly valued sectors that are prime for price declines. (Source: The Wall Street Journal, January 31, 2015.)

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.