Wednesday, August 17, 2016
Marc Faber: When Negative Rates End, It Will Be Total and Complete Destruction
Marc Faber has been a student of markets since 1970, and has learned that the stock market is largely distorted and manipulated. The markets are no longer trading on sound fundamentals in a system where the quantity of money is relatively limited. The liquidity bubble created by central banks, paper money, interest rates, and quantitative easing are examples of this manipulation.
He says we are essentially trading in a virtual reality fantasy land that is driven by the insane money-printing professors at central banks. In looking at the trade deficit, and the current account deficit, Marc's sense is that the US dollar will not continue be a strong currency. The trade balance of goods has been deteriorating continuously.
The US is not very competitive, and many services including accounting, auditing, and software can be provided at a much cheaper cost than in the US. The reasons the market in the US has gone up is due to money printing and stock buy backs, but there is no revenue growth, and no earnings growth.
He recommends staying out of US equities in general, although he feels the gold, mining, coal, and fertilizer sectors in the US are inexpensive. Comparing the price of gold, platinum and silver to all this increased paper money created out of thin air by central banks, precious metals seem inexpensive. Following another correction he thinks precious metals will have further upward moves.
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.