Mark Faber discusses his unorthodox views covering a raft of issues ranging from government’s handling of the pandemic, the trajectory of the US dollar, emerging markets, and potential investment opportunities going forward in his latest interview. 

Mark Faber is a Swiss contrarian investor based in Thailand. He is also the publisher of the well-known Gloom Boom & Doom Report newsletter.

Mark Faber discusses his unorthodox views with a warning about the rise of hardline socialist governments, which in the past led to repressive and often brutal totalitarian regimes

Mark Faber cites the Stalinist repression of the Soviet Union, summary executions of dissidents, and the marching of millions to Gulag, forced resettlements.

“Mark Faber discusses his unorthodox views with a warning about the rise of hardline socialist governments, which in the past led to repressive and often brutal totalitarian regimes”

WEALTH TRAINING COMPANY

It is within the historic context of previous repressive regimes where Mark Faber discusses his unorthodox, or perhaps not so unorthodox views, regarding the government’s handling of COVID 19

In a few short sharp words, Mark Faber believes that the government’s response to COVID 19 will go down in history as being a “complete disaster”, and the catalyst for a deflationary depression.  

Let herd immunity follow its path similar to previous pandemics, argued Mark Faber. “The vulnerable should have been isolated, not the fit young and healthy,” he added Mark Faber. The hands-off government approach to the pandemic was also agreed upon by non-pseudo-government scientists in the Great Barrington Declaration. 

Mark Faber discusses his unorthodox views regarding the pandemic believing that governments should have done nothing

Mark Faber believes that lockdowns are bad for real estate in the cities whilst being good for real-estate in the countryside.

He argues that the relocation of populations out of cities was an existing trend accelerated by technology, particularly fast rural internet communications. 

“I don’t need to be in the financial center to be active in the financial market” said Mark Faber. 

I don’t need to be in the financial center to be active in the financial market

MARK FABER

“That was different in the 70s and 80s you need to be in the financial center HK, Tokyo London, New York, but now you can be anywhere in the world” he added. 

Mark Faber discusses his unorthodox views regarding a Biden presidency

In short, he does not think a Biden presidency will make much difference.

“There are people in the background who run the US” he said. 

Trump campaigned on the platform that he would clean the swamp. He is surrounded by the swamp. He even elected Gina Haspel, as head of the CIA when she was in London at the time working on allegations that Trump had won the election with Russian help. She facilitated all that and she refused to declassify documents” said Mark Faber. 

“However, he (Trump) did refuse regulations that prevented the US becoming like Venezuela” he added. 

He is not so convinced the balkanization of the US will play out, but he believes a split between states more conservative Republicans and Democratic states could happen with the blue states going bankrupt due to their unfunded liabilities, such as the pension fund liabilities. 

If you print enough money stocks can go anywhere” – Mark Faber

Moving on, Mark Faber discusses his unorthodox views relating to agricultural produce, other commodity resources, and the US dollar 

“Grain prices will go up, resource prices will go up” he said. 

But he remains bearish on the US dollar believing that it will lose its safe-haven status. 

“If I were to take one bet it is that USD declines very substantially and US dollars will no longer be the reserve currency of the world” said Mark Faber.

Mark Faber recommends moving to an environment more friendly to resources. He thinks the Canadian dollars will find support and appreciate against the USD.

Mark Faber also believes that the central bank printing is positive for precious metals. 

Mark Faber discusses his unorthodox views regarding stocks

“If you print enough money stocks can go anywhere” he said.

“But your coffee in Starbucks might be worth 100 US dollars more” he said sardonically.

In real terms, stocks are not cheap, compared to the real economy he added.

Mark Faber discusses his unorthodox views noting that there are two markets 

“There are two markets for popular stocks like Amazon, Google Facebook, Apple of this world pharma related stocks, then there is a market for neglected companies, basic industries, banks mining companies, shipping companies anything of the old economy,” said Mark Faber. The opportunities are in neglected companies, according to the Swiss investor.

“Among those, they’re a lot of inexpensive companies compared to their asset base.

If I were a speculative investor, I would buy around the world say 50 companies that are extremely depressed, some will go bankrupt, but some will go up 5 to 10 times” said Mark Faber. 

Mark Faber warns that larger government means less freedom, lower economic growth, lower productivity, which eventually leads to lower standards of living” – Wealth Training Company

Regarding the so-called new normal Mark Faber discuss his unorthodox views believe the reset will normalize more controls and less freedom

But Mark Faber warns that larger government means less freedom, lower economic growth, lower productivity, which eventually leads to lower standards of living.

Sounding an upbeat tune Mark Faber points out that the resource sector is attractive, agricultural commodities coming to life, including fertilizer companies, storage companies. Many value stocks in the old economy are still very depressed.

He believes that emerging markets are not expensive and suggests investors put money to work in values stocks and avoid high price tech stocks.

Mark Faber discusses his unorthodox views believing that economies and societies are moving towards technocratic totalitarian socialism

“I’m afraid this will be negative for the US Dollar” he said. 

He believes that Covid-19 has been used as an excuse by Governments to put people in chains and control them. I don’t think history will be kind to the government’s reaction to Covid-19. 

Think about it. There is no sound logic for curfews during a pandemic. Does the virus somehow become more virulent after dark when the clock strikes 10 PM? 

The march towards totalitarian control ought to rattle every freedom-loving person.