Dr. Faber Explains & Predicts The Economy Inflation US Dollar Stocks Gold & Silver

Posted by Dr. Marc Faber

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Marc Faber is king of thr Barron’s Roundtable Pundits with the best performance over the past decade of an annualized 22.8 per cent, displacing incumbent Felix Zulauf, although he fell slightly short of being the outright winner in 2012 alone (see picks here). Some cracking calls in emerging markets put Dr. Faber on top. He also got the residential real estate recovery right.

Marc Faber has also been a long-term bull of gold, writing his classic book ‘Tomorrow’s Gold’ a decade ago with his main prediction as the title. He’s on the record as predicting $4,000 an ounce for gold before this bull market is over. He’s also keen on silver.

“Continuous interventions by governments with fiscal and monetary measures, instead of smoothing the business cycle, have actually led to greater instability. The short-term fixes of the New-Keynesians have had a very negative impact, particularly in the United States”. Faber said to the LBMA The ANNUAL CONFERENCE of the London Bullion Market Association recently.

“In a Negative Real Interest Environement Some Assets could go Ballistic on the upside. I think there is a lot of money on the sidelines. Some will stay there, because people who don’t trust the system anymore will just keep it there. Some will be invested, but it may not go into equities. It could go into some other asset class, perhaps hard currencies such as gold and silver, or real estate, which is now relatively inexpensive in the U.S.

As for volatility, it increased sharply last year, but has diminished over the last three-months. I expect we’ll see increasingly very high volatility in all asset classes in the next few years. The money in an environment of negative real interest rates will flow. It might flow into fewer and fewer stocks, or into fewer and fewer assets that could go ballistic on the upside”.

In this Dec 13th video Marc Faber explains and predicts the US Dollar, Stocks, Inflation, the economy 2013, gold 2013, silver 2013: