Marc Faber: Look out! A 1987-style crash is coming

The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem?

The market ended up tanking in the second half of that year—dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.

And Marc Faber, publisher of the Gloom, Boom & Doom Report, predicts that the very same thing will happen in the back half of 2013.

"In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought," Faber said on Thursday's "Futures Now." "The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks."

Faber says that's exactly where we find ourselves this August.

"If you look at the last two days," Faber said, referring to Tuesday and Wednesday, "it's remarkable. We are close to the all-time high, at 1,709 on the S&P, and yet yesterday and the day before, there were 170 new 52-week lows. That's a very high figure." Read more >>

Economist Caution: Prepare For 'Massive Wealth Destruction'

That’s exactly what many well-respected economists, billionaires, and noted authors are telling you to do — experts such as Marc Faber, Peter Schiff, Donald Trump, and Robert Wiedemer. According to them, we are on the verge of another recession, and this one will be far worse than what we experienced during the last financial crisis.

Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”

When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”

Faber points out that this bleak outlook stems directly from Federal Reserve Chairman Ben Bernanke’s policy decisions, and the continuous printing of new money, referred to as “quantitative easing” in the media.

Faber’s pessimism is matched by well-respected economist and investor Peter Schiff, the CEO of Euro Pacific Capital. Schiff remarks that the stock market collapse we experienced in 2008 “wasn’t the real crash. The real crash is coming.” Read more >>

Marc Faber Sees Further Downside

There's plenty of room for the stock market to decline, noted bear Marc Faber said Thursday on CNBC. "Yes, I see further downside," said the editor of "The Gloom Boom & Doom Report."

However, Faber said that there were plenty of reasons for stocks to head lower other than what the Federal Reserve was doing in terms of quantitative easing. "I think the markets are worried about something else," he said on "Fast Money."

Faber noted that interest rates have been rising for a year, pointing to the 30-year U.S. Treasury bond and the 10-year U.S. Treasury note bottoming out in July. "So, we've been in an uptrend in interest rates," he added. But that wasn't the whole bear case. "The Chinese economy is much weaker than the official statistics suggest," Faber said.

"My view would be that at the present time, the Chinese economy is growing at something like 4 percent per annum, and without huge credit expansion there would probably be no growth at all."

Other emerging market economies were also poised for poor growth, he added. The outlook for gold and other metals were not great, either.

"Technically, commodities look horrible," Faber said, adding that for precious metals "some technical factiors would suggest that we're approaching at least an intermediate low." Read more >>

Marc Faber, aka Dr. Doom, says there’s nowhere to hide from Bubblegeddon, not even gold

The world is filling up with bubbles, and there’s nowhere to hide, not even in gold, said high-profile market bear Marc Faber, editor and publisher of The Gloom, Boom and Doom Report, on Bloomberg “Surveillance” on Wednesday. The latest bubble is U.S. stocks, which have been testing record highs lately.

“I was relatively positive about U.S. stocks since March 2009,” Faber said. “I haven’t any short positions. I haven’t been shorting any stocks since 2009. But the U.S. marches up , consumer confidence marches down, and emerging markets are performing badly relative to the U.S. The dollar is strong indicating a tightening of international liquidity. And so I don’t think that the U.S. market will go up a lot from here I rather think that there’s now considerable downside risk.”

But what about gold? Why isn’t that holding up as a safe haven? Faber was asked.  He argued that the money central banks are printing  isn’t flowing evenly into the economies they are trying to help. Instead, it’s  just causing more bubbles like the tech bubble in 2000, housing prices up to 2007, commodities in 2008, and most recently select emerging market stocks indexes and the U.S. Read more >>

Faber: Own Gold – “Don’t Store It In The U.S., The Fed Will Take It Away"

Marc Faber, one of the few analysts, to have predicted the current crisis correctly and to have protected his clients in the process, remains very bullish on gold. In another excellent Bloomberg interview, Faber said that “the trend for gold prices will be steady but the trend for the dollar and other currencies will be down. So in other words gold in dollar terms will trend higher.”

“How high it will go, you will have to call Mr Bernanke and at the Fed there are other people who actually make Mr Bernanke look like a hawk and so they are going to print money.” Faber is on record as to the importance of owning physical gold and he again warned about the importance of owning gold but not storing it in the U.S.

“You ought to own some gold but don’t store it in the U.S., the Fed will take it away from you one day,” Faber astutely noted. Read more >>

Marc Faber: Global Recession Dead Ahead

 

Faber warns that economies of the world may be on the brink of a serious slowdown. Faber indicated that while investors remain focused on Greece and Europe – other issues, bigger issues are looming.

And they’re more threatening. “As an observer of markets – whenever everyone focuses on one thing – like Greece and Europe – maybe they miss issues that are far more important – such as a meaningful slowdown in India and China.” The latest reports from Beijing would support Faber's assertion. The HSBC Flash Purchasing Managers Index, slipped to 48.7 in May from 49.3 in April. That marks the seventh straight month that the index has been below 50, a level which indicates economic activity is contracting.

Faber also cited weakness in the high-end as another key catalyst that’s very negative. “There are more and more stocks that are breaking down – economic sensitive stocks and companies that cater to the high-end,” he said. "That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.” Read more >>

Chris Martenson Interviews Marc Faber on The FED

Image by Getty Images via @daylifeIn this podcast, Marc explains his views on why:

* Government intervention into the free markets has been increasing since the early 1980s (S&Ls, Mexico, LTCM, etc) and is the root cause of our issues, as each intervention brings the system further off track
* The principal vehicle for this intervention, the Fed, has a near-perfect track record of creating unsustainable asset bubbles (to which it is largely blind) when it intervenes
* Since its founding, the Fed has been dedicated to expansionary monetary policy. When looking at history, there's an argument to be made that per capita price management in the US was better under the gold standard we had before the Fed.
* We're on a direct path to higher inflation, despite the Fed's preference for raising the deflation spectre and citing the low (and ridiculously-calculated) CPI.
* While the Fed is printing money with abandon right now (e.g. buying all new Treasury issuances for the next six months), doing so is raising the risk of a hyperinflationary currency collapse.
* US government bonds are a disasterous investment going forward (even if the deflationists are right).
* The revolving door between Wall Street and Washington motivates our leadership to preserve the status quo, which is corrosive to markets because smaller investors are waking up to the fact that the rules are stacked in favor of the big players. Investing as we have historically thought of it is dead.
Read more...

U.S. Food Inflation Spiraling Out of Control

FORT LEE, N.J., April 22 /PRNewswire/ -- The National Inflation Association today issued the following food inflation alert to its http://inflation.us members:

The Bureau of Labor Statistics (BLS) today released their Producer Price Index (PPI) report for March 2010 and the latest numbers are shocking. Food prices for the month rose by 2.4%, its sixth consecutive monthly increase and the largest jump in over 26 years. NIA believes that a major breakout in food inflation could be imminent, similar to what is currently being experienced in India.

Some of the startling food price increases on a year-over-year basis include, fresh and dry vegetables up 56.1%, fresh fruits and melons up 28.8%, eggs for fresh use up 33.6%, pork up 19.1%, beef and veal up 10.7% and dairy products up 9.7%. On October 30th, 2009, NIA predicted that inflation would appear next in food and agriculture, but we never anticipated that it would spiral so far out of control this quickly.

The PPI foreshadows price increases that will later occur in the retail sector. With U-6 unemployment rising last month to 16.9%, many retailers are currently reluctant to pass along rising prices to consumers, but they will soon be forced to do so if they want to avoid reporting huge losses to shareholders.

Food stamp usage in the U.S. has now increased for 14 consecutive months. There are now 39.4 million Americans on food stamps, up 22.4% from one year ago. The U.S. government is now paying out more to Americans in benefits than it collects in taxes. As food inflation continues to surge, our country will soon have no choice but to cut back on food stamps and other entitlement programs.

Most financial experts in the mainstream media are proclaiming that the recession is over and inflation is not a problem in the U.S. Unfortunately, they fail to realize that rising food and gasoline prices accounted for 58% of February's year-over-year 3.85% rise in retail sales. NIA believes price inflation is beginning to accelerate in many areas of the economy besides food and energy, and all increases in U.S. retail sales this year will be entirely due to inflation.

To receive NIA's latest updates about inflation and the economy, sign-up for the free NIA newsletter at: http://inflation.us

About us:

The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.

CONTACT: Gerard Adams, 1-888-99-NIA US (1888-996-4287), editor@inflation.us

SOURCE National Inflation Association

Faber and Mish: We're Doomed and Washington Can't Do Anything About It

Tech Ticker

Washington is patting itself on the back for having orchestrated an amazing economic recovery. But Washington lawmakers are a delusional bunch of boneheads, say Marc Faber and Mike "Mish" Shedlock, editor of the Gloom, Boom, and Doom Report and investment advisor at SitkaPacific Capital Management, respectively.

The economy is NOT recovering, they say, and the U.S. faces a depressing "eventuality" of either crushing deflation (Shedlock) or runaway inflation (Faber). The timing and type of this eventuality is uncertain, say the gurus, but they are certain it's too late for America to change course.

"It's beyond repair -- it's too late," to avert fiscal disaster, Faber declares.

Mish agrees: "The day of reckoning has arrived. The question is how long it takes to play out."

This grim outlook doesn't mean you're helpless. Faber recommends individuals prepare for doomsday by buying gold, owning assets abroad and buying property outside of major cities.

Marc Faber, Hugh Hendry, And Nassim Taleb Go At It In Russia

businessinsider.com
Just click below:

(Via Infectious Greed)

Marc Faber: U.S. is total disaster; we're all doomed

Six minutes into the video, Faber says "You cannot imagine the U.S. can solve its problems. The U.S. is a total disaster. We're all doomed. "

Marc Faber, ECONOMIC ARMAGEDDON In The U.S.

Marc Faber, ECONOMIC ARMAGEDDON In The U.S.

Gold Will Stay at $1000 and Above - Faber

Bloomberg reports:
Gold won’t fall below $1,000 an ounce again after rising 27 percent this year to a record as central banks print money to help fund budget deficits, said Marc Faber, publisher of the Gloom, Boom & Doom report.

The precious metal rose to all-time highs in New York and London today as the dollar weakened. The Dollar Index, a gauge of value against six other currencies, has declined 7.9 percent this year and today fell to a 15-month low. News last week of bullion purchases by the Indian and Sri Lankan governments raised speculation that other countries would follow suit.

“We will not see less than the $1,000 level again,” Faber said at a conference today in London. “Central banks are all the same. They are printers. Gold is maybe cheaper today than in 2001, given the interest rates. You have to own physical gold.”

China will keep buying resources including gold, he said.

“Its demand for commodities will go up and up and up,” he added. “Emerging economies will grow at the fastest pace.”

In contrast, Western countries will be lucky to avoid economic contraction, while the Federal Reserve will maintain interest rates near zero percent, he said.

Marc Faber – U S Dollars Will Be Worthless

Marc Faber - "Total Collapse Will Come" - Economic Armageddon - Dollar Crash

Marc Faber predicts with certainty that the United States will go through high inflation and a lower standard of living. Expect wars and currency re-evaluation.