Last quote by Mark Faber
Mark Faber quotes
In March 2017, the U.S. bull market will be eight years old. By any standard, this is a very aging bull market. By June 2017, the economic recovery will be eight years old. By any standard, a recovery that is very mature.
Mr. Trump is not particularly keen on China. There may be some trade war escalation or trade restrictions with China, which in my view would rather be negative for the U.S. than for China.
China does not depend on the U.S. The U.S. is still its largest export destination as a country, but taken together, all the emerging markets are for China much more important.
We have a credit bubble in China, like, by the way, everywhere else in the world. It's just bigger in China and that, in my view, will have to be deflated.
I think that in 2017 my recommendation would be to overweight emerging economies, and I would also overweight Europe, partly because I think that the sentiment about the U.S. dollar is far too optimistic. I think the dollar is terribly overbought and overvalued, so I wouldn't get into the U.S. dollar at this time.
The obvious trade with a Trump victory is to own Russian and Kazakhstan assets – bonds and equities. That is the obvious trade for the simple reason that Mr. Trump has a more benign view of the world and respects the perspective of foreign leaders.
But, many Asian countries were not all that much in favor of TPP to start with ... so I don't think that it's a negative.
Over the last 12 months, U.S. government's debt increased by 1.4 trillion dollars and will hit 20 trillion dollars very quickly… within a month or two.
This combination of infrastructure in emerging economies and infrastructure spending in the developed economies of the U.S. and Europe, in my opinion, will mean that inflation will actually surprise on the upside.
In the western world, they believe – I'm not saying it's the right belief – but the belief among economists and the neo-Keynesian and the interventionists is that monetary policy alone cannot lift the global economy out of its slow growth mode. So they have to go and build infrastructure and boost governments' fiscal deficits.
They are going to continue to print money and the Fed's balance sheet and the other central banks' balance sheets will continue to grow until the whole system collapses and then you and I in gold assets will be better off than in paper assets.
They were trying to mix all kinds of powders and chemicals to produce essentially gold. And they all failed.
It's possible that suddenly inflationary pressures will be there, that central banks should then act but they cannot because the system is so overleveraged.
This is a blatant expropriation of honest people's savings. And in that scenario I'd rather have gold than cash.
Pension funds, even in these beautiful years of returns, 2009 to today, they have become less funded, they have become more underfunded. With interest rates at zero and this low, their portion that's in bonds is never going to meet the expected returns of 7.5 percent. It's physically not possible.
What they produce can be produced by Mercedes, BMW, Toyota, Nissan. Anybody in the world can make it eventually, at much lower cost and probably much more efficiently.
I think Tesla is a company that is likely to go to zero eventually.
They were conducted or paid by the elite.