Thursday, February 2, 2017

Marc Faber - Negative Impact On USD - 30 Jan 17

Marc Faber - Negative Impact On USD - 30 Jan 17

as we go into 2017 the consensus is interest rates will go up the Trump inflation trade you know you want to be in assets and avoid bonds and cash and you want to be long the US dollar and stocks in the US and essentially overweight the u.s. overweight the US dollar and overweight basic stocks but i think and it's not about the travel ban but the travel ban adds a different dimension about we channel totally in a second but protectionism I guarantee you is not going to be very good for the u.s. that for sure not and the travel ban and protectionism what does it do the u.s. basically has a trade and current account deficit that is not the issue today but the accumulated deficits are an issue in the sense that the world has a huge supply of dollars floating around sometimes this the global liquidity gets tighter sometimes it expands but in general the US dollar position and assets in the u.s. depend on one factor his confidence of foreigners investing in the US what do you think does he do if I'm at the european or chinese IC suddenly a travel ban on Muslims if I'm a chinese investors well especially given the fact that they've been lowering perhaps an allocation to us treasuries previously as well yes but not but I was just saying the private citizens yeah they see a travel ban on Muslims anyone with any brains he will think well what about if tomorrow there is a travel ban on chinese and i own a property in the US or I own assets in the US and I can't access my assets in the u.s. so I think that actually this travel ban psychologically will have a very negative impact in long run on the US dollar and US assets particular the likes of efficient models like you're interested you know the protectionism I what I just came arrived yesterday from Mexico for my city I've never heard of that before but you may be you g awawa because of the small dogs you probably heard it i mean you have to see this place the prize level is now unbelievably low so a lot of countries like Turkey and Mexico but even in Asia because of the depreciation of the currency is against the US dollar they have become quite reasonable in price also for the first time in many years I noticed yesterday at the bar the price level here in London is lower than in America because of the the job first and drop in sterling that beer here is maybe twenty percent lower gettin anywhere

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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