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Marc Faber 2015 Predictions – Expect Volatility and Surprises in 2015 1/12/2015 (Video)

Monday, January 12, 2015 9:02
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Marc Faber, editor and publisher of The Gloom, Boom & Doom Report has long been an advocate of owning physical gold. Let’s see what he is forecasting for 2015 in terms of the economy and the gold price. In the video below, Marc Faber shares his gold prediction for 2015 by discussing whether gold will dip below $1,000. He also discusses whether owning physical bullion or gold mining shares is a better investment for 2015.With the slowing world economy that has led to a slowdown in oil demand, what do you think is the long-term future of oil? Likewise, if oil prices rise again, would you recommend buying Russian oil stocks?

 

Marc Faber: Well, my view is that there are many explanations for the weakness in oil, including some theories that Saudi Arabia wanted to weaken Russia or the shale oil production in the US or Iran, and so forth. But my view is that the decline and sharp decline in oil prices signals a weakening global economy.

 

Now, in the last few days, I received many reports by brokerage firms and banks, and so forth. They all think that next year the economy in the world will be stronger than in 2014. This would not be my view. Reason A, the low yields on government bonds, that would seem to suggest to me that there are still some growth issues in the global economy, and the sharp fall in the industrial commodity prices would also suggest to me that the economy will be weaker than expected.

 

And I live in Asia. I can say that we’re not in a recession or in a deep recession, but there’s very little growth at the present time. In fact, I would argue that there’s hardly any growth at all. And as far as Russian oil stocks are concerned, and I think the oil price can rebound here short-term, but you might as well buy some oil drillers in the United States or oil servicing firms or oil companies. Why take a huge risk in Russian oil companies? 

 

As the price of oil drops below $50 for the first time since 2009, noted investor Jeffrey Gundlach warns that a fall to $40 dollars a barrel could spark “terrifying” geopolitical consequences.

 

The February contract for West Texas Intermediate briefly fell to a session low of $49.95 earlier today, while Brent crude also hit a 5-½-year low.

 

However, according to influential investor Gundlach, founder of Doubleline Capital, a fall to $40 could set in motion devastating global developments. “Oil is incredibly important right now,” Gundlach said in a recent interview with FuW. “If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.”

 

As Zero Hedge points out, Gundlach is right to draw a correlation between unstable price fluctuations in crude oil and geopolitical turmoil. 

 

The last time we saw anything like this activity in terms of oil price, it turned out to be a precursor to the global financial collapse of 2008.

 

“A junk bond implosion is usually a signal that a major stock market crash is on the way. So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street, Now, you may say, “Okay. If the government buys all the government bonds, how can yields go up?” Well, they can go up because there is a lot of debt outstanding already, and whereas the government debt may not collapse in price, in other words, yields on government bonds may not go up substantially. What may happen is that corporate bond yields, and in particular, high yield bond yields could go up substantially. Marc Faber: Well first of all, what is overvalued and undervalued is a subjective judgment, and I tend to agree with Rick that gold shares, okay, they’re down 80%, and they are cheap, compared to the physical price of gold and compared to Facebook and Google and all these Netflix type of stocks. That I agree entirely. Enjoy!!!

 

 

Marc Faber is sensible about not trying to keep gold or silver in America, confiscation laws are forthcoming and if you posess gold or silver you will be deemed a criminal. In other words any savings and assets will turn out to be property of the State. Unless of course you are currently rich you will be protected.The American people are to soft to to protect against their assets being taken by government and almost all our politicians are owned by banks and corporations just like the SCOTUS..

 

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