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Marc Faber

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Marc Faber
Born (1946-02-28) February 28, 1946 (age 78)[1]
Zurich
NationalitySwiss
EducationEconomics, Ph.D
Alma materUniversity of Zurich
OccupationInvestor

Marc Faber (born February 28, 1946) is a Swiss investor based in Thailand. 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]

Career

Faber was born in Zurich and schooled in Geneva, 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.[5]

During the 1970s, Faber worked for White Weld & Company Limited in New York City, Zurich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong[6] 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 Chiang Mai, Thailand, though he keeps a small office in Hong Kong.[7]

Investment views

In 1980s

Faber is credited for advising his clients to get out of the stock market before the October 1987 crash.[8]

In 2000s

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.[9] He stated that there are few value investments available, except for farmland and real estate in some emerging markets like Russia, Paraguay, and Uruguay.[10]

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.[11][12] In December 2008, Faber said, "I think a recovery will not come in the next couple of years, maybe in five, 10 years' time".[13] Subsequently, the S&P 500 index rose by 48% from 865.58 on January 1, 2009 to 1282.62 on January 1, 2011.[14]

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.[15] Subsequently, annual increases in the CPI were 2.7% in 2009, 1.5% in 2010, 3.0% in 2011, 1.7% in 2012, 1.5% in 2013, 0.8% in 2014 and 0.7% in 2015.[16] Inflation in Zimbabwe peaked at 79.6 billion percent in mid-November 2008.

In 2010s

In 2012, Faber claimed that there was a "100% chance" of a global economic recession later that year or in early 2013.[17][18] Subsequently, the average world product grew steadily by 3.4% in each of 2012, 2013 and 2014, and 3.5% in 2015.

In 2012, Faber predicted that the S&P 500 index would fall at least 20% within 6–9 months following the re-election of Barack Obama.[19] Subsequently, the S&P 500 index rose from a low of 1359.88 on November 16, 2012 to 1480.40 as of January 1, 2013, 1570.70 on April 1, 2013 (up 15% from the November low, 6 months after Faber's prediction), 1668.68 on July 1, 2013 (up 22% from the November 2012 low) and 1783.54 on November 1, 2013 (up 31%).,[20][21]

On March 27, 2013, Faber said that the U.S. is creating nowhere-to-hide bubbles in many emerging economies such as Indonesia, Philippines, and Thailand (up four times from 2009 lows).[22]

On September 23, 2014, Faber said we have "bubbles everywhere".[23]

On January 14, 2015, Faber predicted that gold prices will rise by 30% in 2015.[24] Gold prices subsequently fell by 14% from $1234 on January 14, 2015 to $1060 on December 31, 2015 [25]

On July 23, 2015, Faber stated that investors must hold cash for better buying opportunities after correction.[26]

Writings

Faber writes the monthly paper investment newsletter The Gloom Boom & Doom Report, as well as the online subscription latter "Monthly Market Commentary" . He has also authored several books.

Faber has been a contributor to Forbes[27][28] and International Wealth (a sister publication of the Financial Times).[29] 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.[29]

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."

References

  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. ^ [1] Archived October 3, 2012, at the Wayback Machine
  3. ^ Jessica Pressler and Bess Levin. (2008-10-31). "The Fearmongers of Finance". Retrieved 2009-12-15.
  4. ^ "Asia Frontier Capital Ltd. is a fund management company managing equities in Asian frontier countries: Bangladesh, Cambodia, Iraq, Laos, Mongolia, Myanmar, Pakistan, Papua New Guinea, Sri Lanka, Vietnam - Shareholders". Asiafrontiercapital.com. Retrieved 2015-03-06.
  5. ^ [2] Archived October 26, 2007, at the Wayback Machine
  6. ^ Sterngold, James. (1990-10-08). "Hong Kong Empire's 'Junk' Tactic". The New York Times. Retrieved 2009-12-15.
  7. ^ [3] Archived September 25, 2009, at the Wayback Machine
  8. ^ Sayson, Ian C. and Pimm Fox. (2007-01-08). "Global Markets Face `Severe Correction,' Faber Says". Bloomberg. Retrieved 2016-08-20.
  9. ^ 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. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  10. ^ McTague, Jim. (2007-12-31). "Barron's Cover: Don't Bet the Farm – Part II". Barron's. Dow Jones. Retrieved 2009-12-15.
  11. ^ "Video - Bloomberg Business". Bloomberg.com. Retrieved 2015-03-06.
  12. ^ "Mish's Global Economic Trend Analysis: Marc Faber - Bullish On The US$, Bearish On Commodities". Globaleconomicanalysis.blogspot.com. 2008-08-09. Retrieved 2015-03-06.
  13. ^ "Marc Faber predicts economic disaster in 2009 part 1 of 2". Youtube.com. Retrieved 2015-03-06.
  14. ^ http://www.multpl.com/s-p-500-historical-prices/table/by-year
  15. ^ "U.S. Inflation to Approach Zimbabwe Level, Faber Says". Bloomberg.com. Retrieved 2015-03-06.
  16. ^ http://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/
  17. ^ "Marc Faber: 100% Chance of Global Recession". Cnbc.com. Retrieved 2015-03-06.
  18. ^ "Odds of Global Recession Are 100%: Marc Faber". Cnbc.com. Retrieved 2015-03-06.
  19. ^ http://www.bloomberg.com/news/videos/b/7ba1b8b8-08d2-4d06-9ebf-fb34ba756ab5
  20. ^ http://www.multpl.com/s-p-500-historical-prices/table/by-month
  21. ^ https://www.google.com/search?sourceid=navclient&aq=&oq=S%26P+500+chart&ie=UTF-8&rlz=1T4GGNI_enUS548US548&q=S%26P+500+chart&gs_l=hp...0j0i131j0l3j41l2.0.0.0.9200...........0.t0N1A99VKYc
  22. ^ "Faber: U.S. Is Creating Nowhere-to-Hide Bubbles - Bloomberg Business". Bloomberg.com. Retrieved 2015-03-06.
  23. ^ "Faber: Bubbles everywhere". Video.cnbc.com. Retrieved 2015-03-06.
  24. ^ "Marc Fabers Big Bet: Gold to Rise 30% in 2015 - NDTVProfit.com". Profit.ndtv.com. 2015-01-14. Retrieved 2015-03-06.
  25. ^ http://goldprice.org/gold-price-chart.html
  26. ^ "Marc Faber". octafinance.com. 2015-07-23. Retrieved 2015-07-23.
  27. ^ Faber, Marc. (2002-06-10). "Economy And Empire". Forbes. Retrieved 2009-12-15.
  28. ^ "Marc Faber [Forbes website search results]". Forbes. 2009-12-15. Retrieved 2009-12-15.
  29. ^ a b "Marc Faber". Financial Gurus. Retrieved 2015-03-06.
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