Sunday, October 9, 2016

Marc Faber : Markets are volatile and there is a lot of leverage in the system


This week on #TGIF BloombergQuint's Agam Vakil and Shraddha Babla speak to Marc Faber about the global economy, U.S. elections (find out if he prefers Trump or Clinton), Indian equities (which sectors is he betting on?) and GOLD(still bullish?)!




Q: One asset class that you have been bullish on, is gold. And the love for gold in India is well known. Does that make you look at India positively and what did you make of the recent sell-off in gold?

Marc Faber : Markets are volatile and there is a lot of leverage in the system. Hedge funds borrow money to buy gold, silver, equities, bonds, and currencies. Over the last 2 years, gold dropped almost 30 percent. So we have this volatility. People say markets are not volatile, but that’s not true. There’s a lot of volatility. And I think that the positioning in gold was heavily long. You have to see some of the hedge funds. They know what the positions of other hedge funds are. So when they know a hedge fund is heavily long gold on the margin, they may squeeze that position out by selling gold. And then the hedge fund which has large positions may have to dump gold and the price goes down. And then they can cover.




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.

1 comment:


  1. I was looking for something like this ,Thank you for posting the great content……I found it quiet interesting, hopefully you will keep posting such blogs…

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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.