May 21, 2013

Marc Faber: 'Something Will Break Very Bad'

...and other recent quotes from Doctor Doom himself:

Marc Faber on the next crash (from The Globe And Mail):

“What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent? We don’t know these things ahead of time, but something will always move markets up and something will always move them down. I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. .... Something could come along, geopolitically or otherwise. I would be very careful being overweight equities. I still have 25 per cent in equities and 25 per cent in corporate bonds.”

Marc Faber on how he buys gold (from Yahoo):

“I bought gold at $1,400, I buy every month some gold, and I have an order to buy more at $1,300 because I want to keep an allocation towards gold – physical gold – and not stored in the United States at all times.”

Marc Faber on open-ended QE in Japan (from Yahoo):

“The government in Japan will continue to monetize. In other words, they’ll continue to print money…. The yen is oversold and stocks are overbought and the correction is forthcoming. But, any time the market would drop in Japan and the yen would strengthen, there will be more money-printing.”

“The only way I could see 40,000 or even 100,000 on the Nikkei is really massive money printing,” says Faber. “As a result of massive money printing, the yen goes down and the bond market in Japan collapses. This would force the Bank of Japan to monetize even more because as interest rates go up on the Japanese debt, it becomes a burden on the Japanese government to pay the interest on the debt. So, it would have to be met by more money printing and that would lead to more yen weakness.”

This is why they call him Dr. Doom.