Marc Faber

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Marc Faber
Born (1946-02-28) February 28, 1946 (age 68)[1]
Zurich
Nationality Swiss
Education Economics, Ph.D
Alma mater University of Zurich
Occupation Investor

Marc Faber (born February 28, 1946) is a Swiss investor. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.[1][2][3] Faber also serves as director, advisor and shareholder of a number of investment funds that focus on emerging and frontier markets, including Leopard Capital’s Leopard Cambodia Fund and Asia Frontier Capital Ltd.'s AFC Asia Frontier Fund.[4]

Faber has a reputation for being a contrarian investor and has been called "Doctor Doom" for a number of years. He was the subject of a book written by Nury Vittachi in 1998 entitled Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis.[5][6] Faber has become a frequent speaker in various forums and makes numerous appearances on television around the world including various CNBC and Bloomberg outlets, as well as on internet venues like Jim Puplava's internet radio show.[7] Faber has also engaged the Barron's Roundtable[8] and the Manhattan Mises Circle.[9]

Career[edit]

Faber was born in Zürich and schooled in Geneva, Switzerland, where he raced for the Swiss National Ski Team (B-Team).[1] He studied Economics at the University of Zurich and, at the age of 24, earned a Ph.D. in Economics, graduating magna cum laude.[10]

During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong[11] from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Chiangmai, Thailand, though he keeps a small office in Hong Kong.[12]

Faber's company, Marc Faber Limited, acts as an investment advisor concentrating on value investments with tremendous upside often based on contrarian investment philosophies. Faber also invests and acts as a fund manager to private wealthy clients. Faber is a regular speaker on the investment circuit, often quoted in the financial press for his non-conformist viewpoint and alternative investment philosophies.

Investment views[edit]

In 1980s[edit]

Faber is credited for advising his clients to get out of the stock market before the October 1987 crash.[13]

In 2000s[edit]

Faber predicted the rise of oil, precious metals, other commodities, emerging markets, and especially China in his book Tomorrow's Gold: Asia's Age of Discovery. He also correctly predicted the slide of the U.S. dollar since 2002.[14] He stated that there are few value investments available, except for farmland and real estate in some emerging markets like Russia, Paraguay, and Uruguay.[8]

He also expressed temporary bullishness for the U.S. Dollar in mid-2008, before it dramatically recovered and positive expectations for holding the Japanese yen.[15] In December 2008, Faber said, "I think a recovery will not come in the next couple of years, maybe in five, 10 years' time".[16]

In 2009, Faber predicted with full confidence that the Federal Reserve's policy of keeping interest rates near zero would lead to hyperinflation approaching levels seen in Zimbabwe.[17]

In 2010s[edit]

On March 9, 2009, Faber correctly predicted a U.S. stock market bottom.[18]

In 2012, Faber claimed that there was a "100% chance" of a global economic recession.[19][20]

On March 27, 2013, Faber said that the U.S. is creating nowhere-to-hide bubbles in many emerging economies such as Indonesia, the Philippines, and Thailand (up four times from 2009 lows).[21]

Writings[edit]

Faber writes the monthly investment newsletter The Gloom Boom & Doom Report. He has also authored several books.

Faber has been a contributor to several leading publications around the world in the past, among them Forbes[22][23] and International Wealth (a sister publication of the Financial Times).[24] He has contributed regularly to several websites such as Financial Intelligence, Asian Bond Portal, Die Welt, Finanzen, Boerse, AME Info, Swiss Radio, Apple Hong Kong and Taiwan, Quamnet, Winners, Wealth and Oriental Daily. He has also written occasionally for the International Herald Tribune, Wall Street Journal, and Borsa e Finanza.[24]

Faber has been long term bearish about the American economy for a number of years, and continues to be so. He concluded his June 2008 newsletter with the following mock quote:

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."[25]

References[edit]

  1. ^ a b c "Faber, Marc" in Who's Who of the Asian Pacific Rim, Volume 6, pg. 105. Published by Barons Who's Who, 1998.
  2. ^ http://new.gloomboomdoom.com/public/pSTD.cfm?pageSPS_ID=6000
  3. ^ Pressler, Jessica and Bess Levin. (2008-10-31). "The Fearmongers of Finance". Retrieved 2009-12-15. 
  4. ^ http://www.asiafrontiercapital.com/about-afc/shareholders.html
  5. ^ "Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis". In Global Investor Bookshop. Retrieved 2009-12-15.
  6. ^ Vittachi, Nury. (1998). Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis. John Wiley & Sons. ISBN 0-471-83205-7. 
  7. ^ "Financial Sense Newshour Expert ~ Marc Faber ~ 02/14/2009". www.financialsense.com. Retrieved 2009-03-04. 
  8. ^ a b McTague, Jim. (2007-12-31). "Barron's Cover: Don't Bet the Farm – Part II". Barron's (Dow Jones). Retrieved 2009-12-15. 
  9. ^ [1] Mirror, Mirror on the Wall, When is the Next AIG to Fall?
  10. ^ "About Marc Faber: Biography". Marc Faber Ltd. Retrieved 2009-12-15. 
  11. ^ Sterngold, James. (1990-10-08). "Hong Kong Empire's 'Junk' Tactic". The New York Times. Retrieved 2009-12-15. 
  12. ^ "Lifestyle: New Office Building". Marc Faber Ltd. 2003. Retrieved 2009-12-15. 
  13. ^ Sayson, Ian C. and Pimm Fox. (2007-01-08). "Global Markets Face `Severe Correction,' Faber Says". Bloomberg. Retrieved 2009-12-15. 
  14. ^ Cooper, Peter J. (2008-08-10). "A tribute to Marc Faber, part one: US dollar, Nasdaq, gold and oil". In AME Info. Retrieved 2009-12-15. 
  15. ^ Faber, Marc. Phone interview with Kathleen Hays. Bloomberg News. August 2008. Retrieved on 2009-12-15. Transcript can be found at Mish's Global Economic Trend Analysis.
  16. ^ "Marc Faber predicts economic disaster in 2009 part 1 of 2". 
  17. ^ "U.S. Inflation to Approach Zimbabwe Level, Faber Says". 
  18. ^ "Inside Look - Gloom, Boom & Doom (Part 1)". 
  19. ^ "Marc Faber: 100% Chance of Global Recession". 
  20. ^ "Odds of Global Recession Are 100%: Marc Faber". 
  21. ^ Faber: U.S. Is Creating Nowhere-to-Hide Bubbles 27-03-2013
  22. ^ Faber, Marc. (2002-06-10). "Economy And Empire". Forbes. Retrieved 2009-12-15. 
  23. ^ "Marc Faber [Forbes website search results]". Forbes. 2009-12-15. Retrieved 2009-12-15. 
  24. ^ a b "Profile of Marc Faber: Biography". In Financial Gurus. Retrieved 2009-12-15.
  25. ^ Gosnell, Peter. (2008-10-17). "Prostitutes and beer in US". The Daily Telegraph (Sydney). Retrieved 2009-12-15.

External links[edit]

Newsletters