Sunday, February 19, 2017
This is Why Marc faber Bullish on Gold in 2017
Gloom, Doom & Boom Report's Marc Faber offers his outlook for the precious metal. 10.1.2017
Marc Faber : well it may not bother us equities as long as they print my japan and in Europe because the asset purchases of the bank of japan and the ECB create liquidity in japan and europe and part of that liquidity because of the dollar strength automatically flows into the u.s. and boost the US dollars and equity price is but i think that one the dollar begins to weaken know once the dollars even stronger and even at that level when we talk about headlines for the economy I think the strong dollar already here is a huge handling for US economy AC for export and export oriented companies market we go back to gold for just one second because gold has really struggled in fact it underperformed the rest of its peers and the metal complex over the last 12 months I heard what you have to say about the Fed and that more of QE QE for potentially could certainly raised gold higher but if we don't get that do you see gold moving up well I mean gold eat up last year in dollar terms so if i look at gold at that currency that it's been attention the strongest currency in the world aside from the rebounding russian ruble and Brazilian area and that's the media doesn't talk about and some managers don't talk about gold shares measured i say that GDX ETS their up seventy percent last year but of course the fund managers don't like to talk about it because they didn't own them it's an embarrassment that texture that has been the strongest in the US was not owned by the hedge funds by the thumb to managers and divorce so I think that gold has actually performed well and gold shares have performed fantastically well we sum up 3-4 times well we it from bradley and I think it's no surprise because they do things better in the world than the Clayton clan in the white house so I think people are relieved and the teen if the Trump has assembled these pro-business so it's natural that the mood has improved among bowls small businessman corporations and investors but I just like to mention one thing there in march of this year the bull market will be eight years old we had in 2011 21% correction in October but aside from that it's been going its entry up and the economic expansion will be eight years old in june so by any standard it's a very long expansion so i would think that maybe we can go higher but we're just going through a higher diving board and that the market will not be very friendly because unlike mr. Reagan and the Trump administration faces numerous headland for stronger growth the age of expansion and of course also what mr. Reagan came to power he was an expert in 1980 and became president in 81 bones were using more than fifteen percent and the stock markets the Dow Jones by 82 was below 800 and no higher than in 1964 so asset prices were very impressed with the Trump as the unfortunate condition that absolute prizes around the world are very high what are you talking about property prices of equities or bombs or collectibles or art everything expensive so that is a huge heavy weighted gloves if you have stronger economic growth to three percent in real terms Adam I suppose that interest rates would go up it's not in my view that they will go up i think at the moment Americans have sold out very strongly and these ready to rebound i think the dollar have is very so and is ready to start to decline and I thing stocks are on the high side today we have just on the New York Stock she should 70 new I that new highly should be expanding at this stage but now it's contracting
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.
Posted by Nicole Bourbaki