Marc Faber is nick named ‘Doctor Doom’ He dishes out his market predictions and Forecast advice in his newsletter Gloom Boom & Doom Report.
Marc Faber is famous for predicting 1987 stock market crash. He advised his clients to get out of the stock market one week before the October 1987 crash.
Marc Faber Current Market Predictions & Forecast
- US is going to go bankrupt – His current tag-line is: ‘buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years’
- As world population expand, food prices will continue to rise – Faber advises stock pickers to play on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
- Commodities – Gold and other metals are still long term buys.
- One of his most controversial forecast is imminent dirty war between US and China over access to limited oil resources.
written by Constantine Njeru
\\ tags: Bond Value, Boom, Commodities, Current Market, Dirty War, Doctor Doom, Food Prices, Future Food, Gloom, Inflation, Marc Faber, Market Predictions, Metals, Oil Resources, Stock Market Crash, Stock Pickers, Tag Line, Water Shortages, Water Treatment Technologies, World Population
Marc Faber is an investment analyst, he is best known for the Gloom Boom & Doom Report newsletter. The newsletter publishes Marc Faber investment advice and investment tips. Faber has been nick named ‘Doctor Doom’
Marc Faber Track Record
His market advice since 2000 is quite accurate.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 and the 5/06 and 2/07 mini-corrections.
Marc Faber Investment Advice & Investment Tips
- Don’t confuse luck with insight – Faber is famous for advising his clients to get out of the stock market one week before the October 1987 crash. However Faber said that this prediction was “accidental”.
- Market Timing is very difficult
- There is no value in US bonds – His current tag-line is: ‘buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years.
- Buy gold and other metals – He has said that investors should consider holding part of their wealth in the form of precious metals “because they can be carried”.
- Faber believes there are few value investments available, except for farmland and real estate in some emerging markets like Russia, Paraguay, and Uruguay
written by Constantine Njeru
\\ tags: Age Of Discovery, Bond Value, Commodities, Doctor Doom, Doom Marc Faber, Emerging Markets, Farmland, Gloom, Gold Asia, Inflation, Investment Advice, Investment Analyst, Investment Tips, Market Advice, Market Timing, Precious Metals, Report Newsletter, Stock Market, Tag Line, Value Investments
One strategy to take advantage of the rolling boom in US farmland prices is buying a US farmland ETF ( exchange traded fund)
Data from US farmland prices & statistics show, since 2000, U.S. farmland prices have risen by 58% after inflation, according to the FDIC. And since 2003, they’ve risen by over 10% annually.
To put it in real numbers, the average price of an acre of U.S. farmland more than doubled from $1030 in 1999 to $2350 in 2008.
Investing In farmland Via ETF
One strategy to take advantage of this boom in US farmland prices is buying a US farmland ETF ( exchange traded fund). ETFs investing in farmland are not plentiful but they are out there.
Market Vectors Agribusiness ETF
One US farmland ETF that we are aware of is the Market Vectors Agribusiness ETF (NYSE:MOO). This farmland ETF is listed in NYSE.
It is cheaper to buy an ETF than to go out and buy a farmland.
written by Constantine Njeru
\\ tags: Acre, Amp, Boom, Exchange Traded Fund, Farmland Prices, Fdic, Inflation, Investing, Nyse, Real Numbers, Statistics, Vectors
The US housing bubble may have burst but another US real estate boom fires on: Since 2000, U.S. farmland prices have risen by 58% after inflation, according to the FDIC. And since 2003, they’ve risen by over 10% annually.
Factors Driving Farmland Prices
Surging agriculture prices, a weak dollar, fear of financial assets and rising global demand for food have all contributed to this boom.
Us Farmland Prices 1999 – 2008
The average price of an acre of U.S. farmland more than doubled from $1030 in 1999 to $2350 in 2008, according to the U.S. Agriculture Department.
written by Constantine Njeru
\\ tags: Acre, Agriculture Department, Agriculture Prices, Farmland Prices, Fdic, Fear, Financial Assets, Fires, Global Demand, Housing Bubble, Inflation, Real Estate Boom, Statistics, Weak Dollar
Bill Gross, director of Pimco, best known as the most successful bond investor of his generation, has given his thoughts on how Federal Reserve plan to pump money into the US Economy will affect the bond market in the future.
He has termed the move by Federal Reserve bank a giant ponzi scheme. Yes, the entire federal money system is a Ponzi scheme, but this isn’t news. This system has been in place for about 100 years.
The Future of Bond Market Prices and Interest Rates
The actions of the Fed, led by Chairman Ben Bernanke, will “likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment,” he wrote in a commentary posted on Pimco’s website Wednesday. See Gross’s full commentary.
Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme,” he said.
The End Game
Such a plan “raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead-end where those prices can no longer go up,” Gross wrote. “Having arrived at its destination, the market then offers near 0% returns and a picking of the creditor’s pocket via inflation and negative real interest rates.”
written by Constantine Njeru
\\ tags: 100 Years, Ben Bernanke, Bill Gross, Bond Market, Bond Prices, Bondholder, Bonds, Creditor, End Game, Equity Managers, Federal Money, Federal Reserve, Federal Reserve Bank, Illusion, Inflation, Interest Rates, Money System, Ponzi scheme, T News, Trillions
In the book Age of Turbulence by Allan Greenspan. The former Fed Chief made some interesting economic predictions of US economy and Chinese economy.
The rise of Chinese wages.
The rural urban migration of Chinese workers from farms into factories, will slow, leading to stronger wage pressures and prices, he says. This is already happening as we have seen Foxconn the largest factory in China increase wages of its factory workers.
American Economy and Inflation
The impact of rise in Chinese wages will impact on the US economy. High prices of Chinese goods coming into the US will cause inflation.
written by Constantine Njeru
\\ tags: Allan Greenspan, American Economy, China, Chinese Economy, Chinese Goods, Chinese Workers, Economic Predictions, Factories, Fed Chief, Inflation, Turbulence, Urban Migration, Wage Pressures, Wages
T. Rowe price investing firm has an investing strategy known as growth stock philosophy of investing.
The philosophy advocates investing in companies whose earnings and dividends could be expected to grow faster than inflation and the overall economy.
T. Rowe Price offers an investor a choice of over 90 mutual funds.
T. Rowe Price Retirement funds
Offers a fully diversified portfolio with one fund that matches the approximate year you turn age 65.
For more information Visit T. Rowe Price
written by Constantine Njeru
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Yahoo finance have an interesting interview with Michael Pento, senior market strategist at Delta Global Advisors. The man has come up with some neat mathematical calculations on why Americas’ debt is a disaster waiting to happen.
I have always thought uncle Sam is too big to fail but after reading Michael Pento interview the US could be another Greece tragedy or may be, another Argentina.
Using Treasury Department’s recent U.S debt estimates that showed total U.S. debt will top $13.6 trillion this year and rise to 102% of GDP by 2015. Moreover, the publicly traded debt (debt excluding intra-governmental obligations) will rise to $14 trillion by 2015, up from “just” $7.5 trillion in 2009.
Mr Pento then calculates, At $14 trillion, the interest payments on the public debt will total about $1 trillion in 2015, he continues; even assuming solid growth and low inflation, that would equal about 30% of total government revenue. “What do you think that does to our bond market?,” Pento wonders. “It leads to a dollar crisis and a bond market crisis. That’s why gold refuses to go down. ”
If Pento is right then expect the yield on US treasuries to rise. Investors in bonds could see the value of the bonds fall.
Read the rest at the Source Yahoo Finance
written by Constantine Njeru
\\ tags: Bond Market, Bonds, Debt Crisis, Dollar Crisis, Gdp, Global Advisors, Government Revenue, Governmental Obligations, Inflation, Interest Payments, Market Crisis, Market Strategist, Mathematical Calculations, Michael Pento, Public Debt, Treasuries, Treasury Department, Trillion, Uncle Sam, Yahoo Finance
Gold is hot at the moment. Gold is up a whooping 84% in the last 3 years. The gold investors who so it coming have made some serious money.
There are many reasons as to why gold has risen this high, one is the idea that gold is a safe haven. There is belief that the bailouts of the last 2 years will lead to inflation which causes devaluation of currencies and the only protection against all this is gold.
The idea gold is a safe investment goes back to medieval times. A safe investment means you cant lose your money. But the truth is you can lose your money in gold. What is needed is a change in sentiment and people who bought gold start taking their profit. The gold price trend will be in a reverse gear.
Risks of Investing in Gold
In a Business week interview Susan C. Elser, of Elser Financial Planning Indianapolis gave a good detailed analysis on the risk of gold investment,
Unlike other commodities, gold has few industrial uses. Unlike businesses owned through the stock market, gold earns no profits and doesn’t pay out dividends. Unlike bonds, no one pays interest to holders of gold. And, unlike insured bank deposits, there is no guarantee of your principal investment.
“There is no downside protection on investing in gold,” Elser says.
written by Constantine Njeru
\\ tags: Bank Deposits, Business Week, Devaluation, Dividends, Downside Protection, Financial Planners, Gold Commodities, Gold Investment, Gold Investors, Gold Price, Inflation, Investing In Gold, Medieval Times, Price Trend, Principal Investment, Safe Haven, Sentiment, Serious Money, Stock Market, Susan C
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