Skip to main content

Marc Faber on base metals, shares, economy

Marc Faber joined Bloomberg in the studio to discuss his outlook for 2009, and to offer his views on favorable areas for investment in the year ahead.

Here's a quick summary of points made in this studio interview:

· Marc's dour economic view for 2009 is maintained, though he notes that we may have some positive news over the next few months, providing a temporary break in the gloom.

· Faber chuckles at the mention of the "Obama plan" to stimulate the economy. He points out that government intervention in the economy will prove disastrous in the long run.

While everyone clamors for the government to "do something" to avoid the economic pain, Marc feels that the best policy is to do nothing and let the needed corrections take place. "If people can not accept the downside of capitalism, they should become socialists".

· Industrial commodities and metal mining shares imploded last year, while gold held up in price. As of today, Marc would rather buy a basket of oversold industrial commodities and related shares (Xstrata, BHP, Rio Tinto, and small mining companies) to play a rebound in the sector.

· Faber is long term bullish on oil, noting that the longer term demand for oil is still in place while supplies are limited and declining. On a related note, Marc points out that geopolitical tensions are a looming issue and will likely rise in the future.

Much more to hear in this Bloomberg interview. Enjoy the discussion.

Popular posts from this blog

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi