- Articles - 2011 - Mark Faber - Publisher of Gloom. Boom and Doom Report Current Advice
                Windsurfing at Palo Alto in SF Bay in May 2009
Mark Faber - Current Advice - S&P Trading Range
Stocks over bonds, Bubbles, Greek Debt & S&P500 Trading Range
                Windsurfing at Coyote Point November 2009

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October 26, 2011:  Today Marc Faber, publisher of the "Gloom, Boom and Doom Report," was on CNBC.  He talked of Greek and other bonds, inflation, stocks over bonds, bubbles in China and other countries.  Faber gave a prediction for the trading range for the S&P500. My list below summarize what he said.  Watch the full video here for the full interview

Greece:  Faber says Greece is bankrupt, whether they want to admit it publicly or not. “It will need a 90 percent writedown, but that’s not going to happen. What will probably happen is a 50 percent writedown.”

Stocks vs. Bonds:  Faber likes US Stocks over bonds for the next ten years.

QE3 or EU printing money
If the US prints money again it might not make a bubble in the US because it could make a bubble in a neighbor or trading partner.  "each money printing exercise that brings about unintended consequences and they are higher inflation rates. "  When that bubble collapses, it will be bad for everyone.  He thinks the Fed with Bernanke and Janet Yellin can and will kick the can down the road for another five to ten years which will lead to high inflation. 

  • Kirk comment:  For example, the collapse of the Internet and housing bubbles in US was instrumental in two bear markets where stocks, measured by the S&P500, fell by over 50% from their peak bubble values.
Protection from welfare states:  Faber believes governments protect themselves with entitlements.  "Nobody wants to accept the reality."  He believes you should have your money in many different places.  Says governments will confiscate via taxes and inflation assets from savers to pay entitlements to buy votes.  It is a good idea to diversfy where you have your savings.  Says entitlements everywhere should be cut NOW.   He says he would rather own equities over government bonds for the next ten years

S&P500 Trading Range:  900-1350:  Probably won't exceed May 2011 high (of 1370.58)

S&P500 2011 Trading Range

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