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Marc Faber expects a return to massive quantitative easing by October
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Fri July 16, 2010 8:25 pm

INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the US is so full of debt, stuck in a period of slow growth and high enemployment, that the Federal Reserve will soon have to revert back to crisis era policies.

Speaking to Bloomberg in a live interview Thursday, Faber said: " I am conviced the Fed will soon implement further quantitative easing," adding "and massively so".

"It will probably happen in september, October," Faber said, putting a timeline to his prediction.

Explaining his reasoning, he said: "The US economy is not robust".

Not buying into the good news brigade of commentators who believe the worst is behind us and the US economy is on the mend, he said: "We have mixed signals, but in general the economy is still weak".

Nor has the recent rise of the euro dampen his views on Europe. Faber said Europe does not have a shot at growth and is stuck in sideways movements in its economy, for years to come, as austerity and bailouts weigh on growth.

In his latest monthly market commentary the famed investor discloses a bit more about his investment philosophy.

"I feel that most investors take far too many risks – often with borrowed money – and fail to diversify sufficiently. They also have little patience, very short-term time horizons and no tolerance for losses," Faber writes.

"Their expectations about investment returns are completely unrealistic… Most investors buy a stock or make an investment with the view that within a month the return should be between 10% and 20%," he adds.

"If you can achieve an annual average real return of just 3% on all your assets (inflation adjusted), you will leave a huge fortune to your children".

I prefer diversification and no leverage," he adds explaining "I have seen time and again investors (including myself) be right about an asset class' future performance but fail to convert those views into any capital gains…"

"The prime consideration should always be capital preservation and avoiding large losses," he concludes.

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MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 31, 2014
INTERNATIONAL. In his latest interview with The Gold Report, the 321gold.com founder delivers a frank overview of U.S. international policy and lambasts commentators who look to their tea leaves in search of the next market moves.
date:Posted: October 31, 2014
INTERNATIONAL. If Russia's "pivot to Asia" results in Moscow and Beijing trading oil between them in a currency other than the dollar, that will represent a major change in how the global economy operates and a marked loss of power for the U.S. and its allies."
date:Posted: October 30, 2014
UAE. GCC corporate earnings strength intact; Regional bonds unaffected by global shocks; Central Banks support financial markets.
INTERNATIONAL. If Russia's "pivot to Asia" results in Moscow and Beijing trading oil between them in a currency other than the dollar, that will represent a major change in how the global economy operates and a marked loss of power for the U.S. and its allies."
dhgate