Thursday, October 19, 2017

What Marc Faber is Buying Right Now

Marc Faber discusses the recent action he is seeing in the markets and how he sees things unfolding going forward. Is gold still a good investment, or are there now better opportunities? Will the market continue onward with its rise? Tune in to learn more.

- Source, CNBC

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Marc Faber Won't Apologize for Recent "Racist" Comments, Doubles Down

Prominent business newsletter writer Marc Faber stood by racist remarks he made this week that led to his dismissal from several corporate boards, justifying them on freedom-of-speech grounds.

On Tuesday, three well-known publicly traded Canadian companies promptly dismissed Mr. Faber, a Thailand-based investor and publisher of a well-read investment newsletter, from their boards, after the publication of his latest Gloom, Boom & Doom Report, which contained the statements: "Thank God white people populated America and not the blacks," and "at least America enjoyed 200 years in the economic and political sun under a white majority."

The remarks went viral, causing widespread outrage, with commentators blasting Mr. Faber for his insensitivity and blatant racism. Ivanhoe Mines Ltd., which was one of the companies that sacked Mr. Faber, said in a release on Tuesday it "deplores" his views about race. U.S. business television networks also distanced themselves from Mr. Faber, with CNBC, Fox and Bloomberg stating he is no longer welcome as a guest.

He isn't likely to pop up any time soon on Canadian business television either.

"Mr. Faber will not be appearing on BNN in the future," said a Bell Media spokesperson in an e-mail to The Globe and Mail.

In the face of all of this backlash, Mr. Faber is standing by his remarks. In a series of e-mailed answers to The Globe, Mr. Faber said he did not regret his comments about race, and would not change a word of his missive, citing freedom of speech rights.

"Why should I regret stating historic facts?" he wrote.

When asked if he knew in advance that that the publication of his commentary would result in him being fired from corporate boards, he replied; "If saying what I said leads to these consequences I prefer not to be on these boards."

"I think the corporate world is now run by compliance people. In this context I understand their firing me," he added.

In addition to Ivanhoe, Sprott Inc. and NovaGold also cut ties with Mr. Faber on Tuesday. He also confirmed to The Globe that U.S-based Sunshine Silver Mining Corp. and Vietnam Growth Fund have also let him go.

"One CEO stated that I must have been on some drugs when I wrote my Gloom Boom & Doom report," wrote Mr. Faber, who doesn't recall which CEO make that remark.

"Since I have only taken cocaine three times and marijuana about ten times in seventy years, I did not think these were appropriate comments, " he added.

Richard Leblanc, associate professor of law, governance and ethics at York University, called Mr. Faber's after-the-fact refusal to apologize and the doubling-down on his remarks "very anomalous."

"His reaction is odd," Mr. Leblanc said.

"It actually makes it worse."

Mr. Leblanc says the zeitgeist has changed somewhat since Donald Trump ran an election campaign and subsequently is running a presidency, occasionally based on making derogatory comments, refusing to apologize and then doubling down. Others in the public eye now feel they have "permission" to do likewise, he says, despite corporate boards having no tolerance for such remarks.

Canadian boards in particular are much less forgiving and tolerant than American boards when it comes to off-colour remarks pertaining to race, religion and sexism, Mr. Leblanc says. It's also becoming much more prevalent in North America to do extensive background checks on prospective board members, so as to head off any scandals.

"What you don't want is a situation like this," he says.

"It's an incredible distraction."

As for Mr. Faber, he admits that his comments will cost him economically. The three Canadian board seats alone paid him about $390,000 a year. He is also less likely to be in demand for speaking engagements, and his newsletter, which costs $300 (U.S.) a year per subscriber, may see a decline in popularity, as he will have little or no free exposure any more on business television.

"Economically it will be a huge loss," Mr. Faber said.

"I shall go back to being a waiter."

Monday, October 16, 2017

Marc Faber: I've Increased My Positions in China

Marc Faber, editor of The Gloom, Boom & Doom Report, weighs in on the outlook for emerging markets and says the sentiment about China is turning more positive.

- Source, CNBC

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Friday, October 13, 2017

Monday, October 2, 2017

Marc Faber: This Is Your Best Bet Against Cyber Terrorism

Earlier this month, famous investor Marc Faber reiterated something we've long told our readers: You need to own gold. And you need to own it now.

Especially in the face of cyberterrorism.

In a recent interview with Metal Masters, Faber noted that the biggest geopolitical risk for Americans today is not a conventional war, but rather cyberattacks that could take down the entire U.S. power grid.

If that were to happen, noted Faber, gold would become an "irreplaceable medium of exchange."

"It's good to have a diversified asset outside of the banking system and not financially related," said Faber. That way, if cyber hackers did go after the power grid – or the stock market – you would have investments not tied to either of them, according to Faber.

But cyberattack threats are not the only reason you should have some gold in your portfolio now. In fact, Money Morning Resource Specialist Peter Krauth is watching a gold price catalyst that makes the precious metal a valuable asset even without the risk of a cyberattack…

Gold Prices Are Set to Rise in September Thanks to Congress

On Sept. 29, a U.S. government deadline could be responsible for the next gold price rally in 2017. That is, if members of Congress don't agree on one important issue: the debt ceiling.

The debt ceiling limits how much debt the federal government can carry at any given time. Right now, the current debt level of $19.9 trillion is just a hair away from the $20.1 trillion ceiling.

Unless Congress agrees to raise the ceiling by the deadline, the government will essentially run out of money and will no longer be able to cover its expenses...

- Source, Money Morning, Read the Full Article Here

Friday, September 29, 2017

Gold and Cryptos Are Rising Due to Distrust in Paper Money

I think gold has bottomed out about 1.5 years ago in December 2015. Then we had a strong performance in 2016 where we came back. At the end of last year, we were again at a relatively low level and stocks were depressed. Since then gold mining ETF is up more than 18 percent vis-à-vis DSNP which is up by 9 percent. There are many gold shares that are up between 30 and 300 percent. In my view, the media in the U.S. has a very strong bias for FAM and FAM-related stocks. 

The mining sector does not obtain or receive the necessary attention from the media in the U.S. So, people don’t know how well gold shares are doing. You take American Barrick, Newmont Mining..these are big companies. From December 2015 to today, they are up maybe by 300-400 percent. That people don’t talk about. They talk about Google, Amazon. But the strong performance of the mining companies over the last 2-3 years is not mentioned. 

Now they had a big move recently because gold broke out above 1,300 dollars an ounce. So, they are near term overbought. But any investor when he thinks Jackson Hole, you encounter the typical group thinking phenomena. Yellen, Draghi and Kuroda talking together. Of course they coordinate monetary policies and of course they will print more money in the long run. So the purchasing power of paper money is going down and so I would own some gold. The new thing is the cryptocurrencies. That is a wonderful thing. 

Why do we have crypto currencies? We have it because an increasing number of people don’t trust paper money anymore and they don’t want money that is controlled by the central banks, that pollutes Jackson Hole.

- Source, Bloomberg Quint

Tuesday, September 26, 2017

China Has a Credit Bubble, But So Does the Whole World

I think the beauty about Asia, in terms of being an active manager, is that markets do not move all in concert. There are some markets that are strong. Let’s take the Indian market. It bottomed out in September 2013 after around 17,000 on the Sensex and since then its up more than 80 percent. Many other markets since 2013-14 are actually down. And so India had a huge move. This wasn’t the case for China until recently. 

Recently, China has been picking up. The economy looks slightly better at the present time because there is also a massive injection of liquidity both through the government and the banking sector. Suddenly now, western investors are realising that maybe we are being bearish about China. Yes, they have a credit bubble but so does the whole world. Maybe the Chinese credit bubble can be managed whereas in other countries the credit bubble may be a bigger problem particularly with respect to pension firms and unfunded liabilities. 

So, the money is suddenly flowing into China and, I have to say, I am not quite bullish about China. But, more than a year ago, I started recommending Macau gaming stocks, asset play on the Chinese recovery. Most of these stocks have almost doubled in price.

- Source, Bloomberg Quint

Saturday, September 23, 2017

It’s A Miracle India Grows At All Given Its Horrific Bureaucracy

I had argued for years that I would rather be invested in India than in the U.S. But I have also pointed out that it’s actually a miracle that India grows at all given the horrific bureaucracy India has. This is now really a case where it’s a miracle that India grows at all given the bureaucracy that it has. I tell you, this is about the worst encounter in the whole world.

Wednesday, September 20, 2017

Marc Faber: Trump will be a much better president for world peace

Marc Faber, editor of the “Gloom, Boom & Doom Report”, explains why he thinks a Donald Trump presidency may not be such a bad thing for the global economy.

- Source, CNBC

Sunday, September 17, 2017

Marc Faber: Canada needs to diversify away from U.S. trade dependence

Marc Faber, editor and publisher of the Gloom, Boom & Doom Report joins BNN to discuss why Canada needs to diversify its trade policy away from the U.S.

- Source, BNN

Thursday, September 14, 2017

In The Age Of Cyber-Terrorism, Every Investor Must Own Gold

Take it from “Dr. Doom”: own some physical gold and keep it out of the banking system.

Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style.

In a recent Metal Masters interview with the Hard Assets Alliance, he noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the U.S. power grid.

In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today.

Diversified Assets Outside the Banking System

Faber grew up in Switzerland right after World War II, a tough time that caused his family to distrust paper money and taught him the importance of precious metals as a safety net.

Faber remembers how his father talked about rich people as millionaires. “That, in the ‘50s and ‘60s and ‘70s, was a lot of money. Today, a million is nothing at all—small change. Unfortunately. When people talk about, ‘Oh, there is no inflation in the system,’ this is nonsense. Compared to assets, money has lost a tremendous amount of purchasing power.”

After working on Wall Street for over two decades, Faber’s assets consisted mainly of bonds, equities, and real estate. He says it was in the 1990s when he realized that “it’s good to have a diversified asset outside the banking system and not financially related” and began to purchase some physical gold every month.

The Fed largely ignores gold as an asset, he says, because “gold is an embarrassment to central banks.”

- Source, Forbes

Monday, September 11, 2017

Marc Faber: There will be another ‘massive’ financial crisis in my lifetime

Marc Faber, editor of the ’Gloom, Boom & Doom’ report, speaks to CNBC’s ’Squawk on the Street’ crew on his market outlook. Faber says he expects to see another 'massive' financial crisis in his lifetime.