Friday, February 28, 2014

Marc Faber on Hutchison Port Holdings Trust

If you have a negative view of the world, and you think trade will contract, property prices will fall, and the yield on the 10-year Treasury will drop, a REIT like Hutchison is a relatively attractive investment. 

Hutchison Port Holdings Trust [HPHT.Singapore] yields about 7%. It owns several ports in Hong Kong and China.

Thursday, February 27, 2014

Faber on Asian family business practise changes

The attitude has changed in Asia: Many family businesses used to be dishonest but now are more honest. They realized that by being relatively clean, they could earn a higher stock-market valuation. 

Wednesday, February 26, 2014

Tuesday, February 25, 2014

Huge growth in Asian Tourism

Tourism in Asia will grow, unless there is a war. I have seen Macau go from a sleepy village to a gambling center seven times the size of Las Vegas. This year, 30 million Chinese will travel to Macau. It also appeals to Thais, Indonesians, and others in the region. Chinese tourism in Thailand grew by 90% last year.

Monday, February 24, 2014

Fed should stop writing papers that nobody reads

All these professors and academics at the Fed, write papers that nobody reads, and nobody is interested in. Why would they[Fed] once not write about, how to structure an economic system that lifts the standard of living of most people.

Thursday, February 20, 2014

Marc Faber analogy on inflation

Buy a $100 U.S. bond and frame it to teach your children about inflation by watching the U.S. bond value diminish to almost nothing over the next 20 years.

Wednesday, February 19, 2014

Marc Faber likes Vietnam, Iraq..US stocks not a good buy at the moment

Marc Faber talks on CNBC where he re-iterates his views stating that Emerging economies stock markets are a decent buy compared to US Stocks. However emerging economy stocks still have some downside risks. Dr Faber does like Vietnam and Iraq as they appear to be reasonably priced.

Watch the full interview below

Tuesday, February 18, 2014

Marc Faber: Gold, Eric Sprott

Gold has massively underperformed relative to the S&P 500 and the Russell 2000. Maybe the price will go down some from here, but individual investorsought to own some gold. Insider buying is also high in gold shares. 

About 20% of my net worth is in gold. I don't even value it in my portfolio.

I am a director of Sprott. Eric Sprott, the founder, is a smart guy who made a lot of money for himself, his funds, and charities. He sold a lot of his company's shares because he sees better value in small mining companies. If the gold price goes up 30%, Sprott's shares might double, but mining stocks could go up four times. We are already starting to see a move up in the stocks.

Monday, February 17, 2014

Central bankers in deep trouble

Central bankers are completely insane. My sense is that central banks are unlikely to tighten because they’re in such deep shit already and they will continue to print. 

What the central banks in emerging economies missed is that they should have slowed down their economies and credit growth two years ago and taken some pain. Basically central bankers are Keynesian, they believe in intervention but what they never do is cool down the system.


Thursday, February 13, 2014

Marc Faber youtube interview on variety of subjects

A long Marc Faber interview on multiple topics including Bailouts, Governments, China, Oil, Commodities and future equities performance.

Wednesday, February 12, 2014

Unfair to make old people speculate with their hard earned savings

Be afraid of big corporations and government:
The big corporations and specially money printers are the most powerful people in the world. They control the governments. 

The US treasury, Federal reserve and the government is one and the same. The Fed finances the treasury, so they can goto war. Then they finance transfer payments essentially to buy votes so they can get elected.

Fairness for old people:
By keeping interest rates at zero percent at the Feds fund rate, you penalize the income earners, the savers, your parents. Why should your parents be forced to speculate in stocks, real estate and everything under the sun.

Tuesday, February 11, 2014

Paper Assets are doomed buy Gold

Those who own paper assets are doomed. I recommend the Market Vectors Junior Gold Miners ETF [GDXJ], although I don't own it. I own physical gold because the old system will implode.

Monday, February 10, 2014

Ten Year treasury to rally

For the next three to six months probably Treasury's are a better place to be than equities. For the last two months I have advised my readers to buy 10 year treasury's. I don't like 10-year Treasury's for the long-term because the maximum you can earn is something like 2.65 percent per annum for the next 10 years, but Treasury's are expected to rally because of economic weakness and a stock market decline. 

In the last few years at least there was a flight into quality – that is, a flight into Treasurys.

Friday, February 7, 2014

China Water problem and agriculture

We've been discussing China's water problem. Pollution, too, has become so horrible that people are leaving China with their children. Sometimes, entire cities break down. You hardly have a clear day in Hong Kong any more, or in Shanghai. 

Agriculture is in disarray because the water table is falling, and agricultural commodities prices have corrected significantly, despite all the money-printing around the world.

Thursday, February 6, 2014

Marc Faber likes Vietnam

I like Vietnam. The economy has had its troubles, and the market has seen a big decline. I want you to visualize Vietnam. 

South of Da Nang is China Beach, and north are other beaches. This was the largest American base during the Vietnam War. Coming back to tourism, there is a new airport in Da Nang with international flights. The place will be like Benidorm, the Spanish resort area, in a few years. Benidorm used to be nice, and then it became overbuilt and cheap tourism arrived. Pockets of Asia, including Indochina and India and Bangladesh, are underdeveloped. Eventually there will be road and rail links, and the area will become a giant free-trade zone. There are many investment opportunities here.

I am not keen to own Singapore Airlines or Cathay Pacific Airways because they have a lot of competition from budget airlines. But I like some airline-servicing companies based in Singapore, including SATS [SATS.Singapore], in the catering business, and SIA Engineering [SIE.Singapore], which overhauls aircraft. They have subsidiaries in many Asian countries. The stocks yield around 4%. They aren't supercheap, and the Asian markets generally aren't cheap enough for me. But longer term, if you want to park money in Asia, both companies will do well.

Wednesday, February 5, 2014

Marc Faber interview with Jackie DeAngelis

Click on above video to watch the CNBC News interview

Tuesday, February 4, 2014

Marc Faber on poverty

Poverty in the world is one of the economic and social issues that have preoccupied me the most. How do we reduce or even eliminate poverty? I do not have the answers. Bill Gates in a recent letter to Wall Street Journal, which was based on his Foundation 2013 annual report, tries to find some solutions. I commend him for that even though I have serious reservations about “aid” as proposed by him. 

I have encountered extreme poverty everywhere in the world. In the shanty towns and on the streets of Mumbai, Dacca, Soweto, Nairobi, Jakarta, Rio de Janeiro, Buenos Aires, etc. and in the bidon-villes on the outskirt of large French metropolises. Some encounters with poverty I shall never forget.

A very long time ago, I met a girl in the Philippines  I forgot whether it was in a bar or a nightclub. The next time I saw her, she invited me to her parents’ house. We drove to the outskirt of Manila into the worst slums I had ever seen (against the advice of the taxi driver). The parents’ house was more like a hut without electricity, running water and sanitation in a crowded small lane…. When we got there, the sweaty, overweight father was sitting in the tiny living room. He immediately sent someone to get us two ice-cold San Miguel beers. Naturally, I wanted to pay because in the seventies a beer in the Philippines was still a luxury item. The father, however, refused my offer. We then had a very engaging discussion in Spanish and suddenly my unease vanished and I felt very comfortable in this horribly impoverished environment…..

Much later, I had a very young driver in Madras (now Chennai) who took me around southern India for ten days. When he dropped me off at the airport, I gave him a $100 tip, which was at the time in India quite a lot. A few weeks later my driver wrote a very poignant letter to me saying that I had changed his life with my tip. It had allowed him to buy a bicycle with which he could now reach his work place and his school much faster….

What I want to say is this. Yes, I applaud Bill Gates who wants to improve the world. At least he makes the effort. However, it is equally wrong to look at poor people like lepers who in the past were banished from societies. Poor people have also dignity and honor, they also have happy families, and they are frequently far more generous and compassionate than our wealthy society.

I am not suggesting that we should not fight poverty. However, I doubt we can become “world improvers.” What we can do is trying to help less privileged people around us and interact with them.

I have to say that I have frequently thought about my friend’s heavy father sitting in his tiny house in one of the worst shantytowns I ever saw (much worse than the slums of Africa) and of his generosity, and also about the touching letter my Indian driver sent me. The encounter with extreme poverty may be as beneficial to us who belong to a more privileged class as it is to the poor.

Monday, February 3, 2014

Too late to buy US & early to buy emerging stock markets

The market hasn't had a correction of more than 11% since October 2011. Enthusiasm about the U.S. market reminds me of the talk I heard nine months ago in Indonesia and Thailand. Subsequently, those markets fell 35%. While it is too late to buy the U.S., it is too early to buy the emerging markets. They aren't incredibly cheap, except for Vietnam and Iraq, and capital could still flow out.