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Summary Article: Marc Faber Contrarian investor and market predictor from QFinance: The Ultimate Resource
LIFE AND CAREER

Marc Faber is an economic historian, investment analyst, entrepreneur, and writer. He went to school in Geneva and Zurich, and studied Economics at the University of Zurich. He went on to be a trader and managing director of Drexel Burnham Lambert when the firm was the junk-bond king of Wall Street. He later set up his own business to act as an investment adviser, and fund manager. He is board director of numerous companies, including Ivanhoe Mines. He is also a regular speaker at various investment seminars, and a regular contributor to several leading financial publications around the world. He is now based in Thailand, and publishes a monthly investment newsletter, The Gloom, Boom Doom Report, under the name Dr Doom. He became well known for advising his clients to get out of the stock market one week before the October 1987 crash.

KEY THINKING
  • Marc Faber is known for his contrarian investment approach, and he runs his own company based on the same philosophy.

  • A regular speaker on the investment circuit, often in the financial press for his non-conformist viewpoint and alternative investment philosophy, he specializes in the Asian markets, and focuses on advising clients on investments that have great potential.

  • He is a regular contributor to several leading publications, including the Herald Tribune, the Wall Street Journal, Forbes, and International Wealth, as well as several websites.

  • His market predictions have been timely: in 1987, he warned his clients to cash out a week before Black Monday on Wall Street; in 1990, he forecast the bursting of the Japanese Bubble; in 1993, he correctly predicted the collapse in US gaming stocks; and in 1997, he foresaw the Asia–Pacific financial crisis.

IN PERSPECTIVE
  • He invests and acts as a fund manager to private wealthy clients, and publishes a monthly investment newsletter, The Gloom, Boom & Doom Report, which highlights unusual investment opportunities.

  • He has given many interviews that reflect his bearish views on a wide variety of investments, including stocks, real estate, and commodities.

  • He takes a bearish approach to the long-term outlook for the US dollar, as he believes that the Fed is oversupplying money, which has a negative impact on inflation, and is bad for the value of the currency.

  • Since 2000, he has accurately predicted the rise of oil, precious metals, and other commodities, as well as the slide of US dollar from 2002, and various mini-corrections since then.

  • He predicted the peak of the US housing bubble earlier than most, and now foresees a new wave of credit collapses across the world.

  • In his book, Tomorrow’s Gold: Asia’s Age of Discovery, he predicted the rise of the Chinese market and economy.

  • He has been successful in forecasting the performance of US equities over the past few years, and he remains pessimistic about the prospects for the American economy and stock market.

  • Believes that there are few value investments still around, except for farmland, and real estate in some emerging markets, such as Argentina and Vietnam.

“A mania is a mania, and the experts are caught in it just as the public is.”

Marc Faber
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