econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 30 December 2015

Faber 2016 Outlook: Recession And Falling Stocks In The U.S.

from EconMatters, EconMatters.com

Marc Faber, the publisher of the Gloom, Boom & Doom Report, said in an interview with Bloomberg on Monday morning that "I believe that we're already entering a recession in the United States." Because of his outlook for a weakening economy, and also FANG stocks (Facebook, Amazon, Netflix, Google) skewing the real market performance, he thinks U.S. stocks will fall in 2016 and sees investment opportunities in U.S Treasury, and the Emerging Market (EM).

Although EM is moving into a "buying range" (EM has been under-performing the U.S. since 2011), Faber thinks right now it is still pre-mature to commit a major position. Since he is the "Gloom-Boom-Doomer", Faber always include rural and farm properties as part of his investment strategy. With no exception this time, he likes the real estate in the country side of Portugal, Spain, Italy and the Indochina region (Vietnam, Laos, Cambodia, Myanmar, and Thailand).

The other guest on the video is Frank Berlage, CEO of a investment consulting firm, also has a pretty bearish view on commodities, China and sees the the debt burdens in advanced economies like Japan, the Euro Zone and the U.S. will put us either in a recession or a very slow growth trajectory.

In contrast to Faber's pessimism, Yellen showed a lot of confidence in the U.S. economy by raising interest rates this month for the first time in almost a decade. Many economists questioned the timing of Fed's decision because the inflation rate is stuck near zero despite an expanding GDP. U.S. economic growth registered a 2% annual growth rate in 3Q 2015, down from from 3.9% in the previous quarter.

According to Bloomberg, Faber's predictions have not always hit their mark. Last year, he made a similar prediction that U.S. stocks would plunge and favored gold as the investment choice. Since then, gold has plummeted and stocks have gained. He also warned about long-term U.S. bonds "a suicidal investment" four years ago, but Bloomberg reported that the 30-year Treasury has returned 8.7% per year for the past four years. Right now, the consensus view is that U.S. 10-year Treasuries yields will climb to 2.80% by the end of 2016 which would correspond to a decline in price around 5% from the current yield near 2.3%.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 1
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 2
News Blog
The World's Most Boring Jobs
PewDiePie Weathering The Storm
American Doctors: The Prognosis Isn't Good
What We Read Today 24 March 2017
The Federal Reserve Banks Provided $91.5 Billion Remittances To The U.S. Treasury In 2016
17 March 2017: ECRI's WLI Growth Index Shows Continued Moderate Slowing Of Rate of Growth
Durable Goods New Orders Improved in February 2017
Why NASA Won't Send Humans To Venus
Rail Week Ending 18 March 2017: Short Term Rate of Growth Slowing
How Taxes And Transfers Affect The Work Incentives Of People With Low And Moderate Income
How Tourism Affects China's Current Account Surplus
Infographic Of The Day: The Habits Of Highly Successful Entrepreneurs
To Where The Maple Syrup Flows
Investing Blog
Investing.com Weekly Wrap-Up 24 March 2017
Early Headlines: Asia Stocks Mixed, Dollar, Oil Up, Gold Down, Health Care Vote Today, Calif. Solar, Russia And Poison, Mumbai Bridge, Sanctions Cause Suffering In N. Korea, And More
Opinion Blog
Robots, Aliens, Corporate Drones - Who Will Be The Citizens Of The Future?
Is Our Hard-wired Negativity Bias Useful Or Something To Overcome?
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
24Mar2017 Market Close: Trumpcare Collapses But Little Affect On The Markets
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved