Marc Faberís Latest Prediction
Faber, the editor of the Gloom Boom & Doom Report newsletter,
is on the record with a fresh prediction that U.S. and European
stocks will outperform emerging stock markets.
pony-tailed economist who enjoys the Asian style of life and Mao
memorabilia expects emerging stock markets to succumb to headwinds
as the result of inflation during 2011.
the confluence of the U.S. Federal Reserve and European Central
Bank unprecedented debt monetization activities have flooded capital
fleeing into commodities raising substantially the cost of
living to lower per capita purchasing parity countries as
the root cause.
latest prognostication comes on momentum of his previous call in
March of 2009 of a stock market bottom which, at the time,
was a scary call to make amid panic of the real potential of a bona
fide global meltdown.
correct calls to sell equities prior to the 1987 stock market crash
and the 2000 tech stock crash have cast Faber as an investment guru
with humor and anti-establishment flair as an added attraction
to his firm grasp of economics, markets and affects of central banking
on investor portfolios.
what could be construed as a recovery in the U.S. and
Europe by his latest prediction, Faber believes otherwise, suggesting
enough money printing by central bankers will eventually raise economic
metrics as the legendary Austrian economist Ludwig von Mises observed
and taught during the days of Maynard Keynes:
would be a serious blunder to neglect the fact that inflation also
generates forces which tend toward capital consumption. One of its
consequences is that it falsifies economic calculation and accounting.
It produces the phenomenon of illusory or apparent profits.
~ Ludwig von
In the spirit
of von Mises teachings, Faber warned not to underestimate
the power of money printing as the foundation of his trademark
contrarian outlook in April 2009 of an imminent powerful stock rally
So how do investors
play Fabers latest call?
the rest of the article
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
Best of Marc Faber