Democracy Dying Under Reckless Debt and Tyrannical Bureaucrats: Marc Faber
What this covers
Marc Faber sees signs everywhere that cracks are deepening in Western democracies due to reckless government spending and power mad politicians that exist only to serve themselves at the expense of the population. Marc warns that tyranny has crept into the West through bribes handed out to the masses and there is a price to pay for "free" money and empty promises. Marc also gives his take on how to navigate markets in these trying times, why he's been advocating for gold going on 40 years, his thoughts on a potential commodities supercycle, and much more.
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00:00 Introduction 00:33 Shift From Tech to Value Stocks 07:29 Nikkei Crash and Market Selloff 11:23 Outlook on Inflation 19:07 Is Gold the Ultimate Safe Haven Asset? 23:02 Commodities Supercycle 25:41 Madness in the West 28:34 Where Does America Stand? 32:47 What's Behind the Green Agenda? 37:57 Positioning in Markets Today
#economy #debt #usdollar
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Faber argues that Western economies face inevitable inflation due to unsustainable debt and deficits that governments will finance through monetary expansion rather than politically difficult spending cuts or tax increases, making hard assets and commodities essential portfolio hedges.
- Governments have three options (cut spending, raise taxes, or inflate) but only inflation is politically viable in democracies
- Central banks will print money to prevent system collapse rather than allow asset deflation
- Assets that cannot be rapidly multiplied—gold, real estate, commodities—will appreciate significantly in a monetary inflation cycle
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The absolute level of interest rates does not indicate whether monetary policy is tight or loose; Turkey demonstrated this by having interest rates at 100% (since dropped to 60%) while still running loose monetary policy, whereas Japan had tight monetary policy at 3% interest rates, showing real rates relative to inflation matter more than nominal rates.
“believe me if money was tight and I have to stress here the absolute level of interest rate does not tell you whether monetary policies are tight or not you could have like in Turkey interest rates at 100% they have now dropped to 60% or so but you could have very high interest rates and still lose monetary policies that happens in inflationary countries and you could have tight monetary policy like in Japan if interest rates went to 3%”
In democracies, politicians get elected for short 4-year terms and prioritize preventing economic collapse during their term over long-term stability, ensuring they will support central bank money printing to avoid immediate crisis.
“in a democracy it's a president gets elected for four years he doesn't want the collapse to occur under him he doesn't mind it to occur under the next president and so forth so they keep the system alive”
Geographic diversification is essential; wealthy individuals should not hold all assets in single country/region; for example, Serbs should own assets in Asia outside NATO countries to hedge geopolitical and currency risk.
“people make a mistake by holding the assets all in one place they should diversify say say you have you're rich man in Serbia you shouldn't own everything in Serbia you should own some assets uh maybe in Asia not necessarily NATO countries”
Even in collectibles markets (paintings, art), taste changes over time mean that most modern artists will fail to retain value despite contemporary desirability, making collectibles a risky inflation hedge despite theoretical appeal as non-reproducible assets.
“there are so many of them most of them will fail so but the idea that we could have a cycle whereby assets you cannot multiply as fast as you can print money would go ballistic that I would agree that is very likely because you understand the moment the economy turns down the moment asset markets turn down uh Wall Street will tell the fed you better ease monetary conditions”
In every financial bubble, analyst earnings estimates chronically overestimate future results because projections fail to adequately account for new competition and innovation, as evidenced by Cisco stock remaining below its year 2000 price despite analyst predictions of dominance.
“in a financial bubble the leading object of speculation whether it's energy or gold or financial stocks the estimates always overestimate the future results in other words you know in 99 2000 people said Cisco would become whatever and what happened Cisco didn't perform actually still lower than it was in the year 2000 so you can see uh analysts are very good at essentially making projections that are not met”
Growth in advanced Western economies is concentrated among a few large players (using Home Depot as example) who eventually cannot outgrow the industry, after which growth slows, whereas rest-of-world markets with younger populations are growing rapidly and present better value.
“the advanced economies of the West they cannot grow much for the simple reason that the government has become so big and the regulatory environment so unfavorable that growth is concentrated among few players in in a country so in other words say Home Depot grows at the expense of the mom and pop shops until it becomes big enough that it can't outgrow the industry anymore and then the growth slows down”
The Federal Reserve cannot deflate the housing market without causing huge economic damage because populations have become habituated to asset inflation; if stock and home markets drop 50% simultaneously, it creates economic damage the Fed must avoid, trapping them in a dilemma they self-inflicted through decades of boosting asset prices.
“the FED they know that but they can't really deflate the housing market because it co because if everybody's used to asset inflation if say the stock market drops 50% the Home Market drops 50% it causes huge economic damage so they're kind of in a very difficult situation which they self-inflicted I have to say this they made a mistake uh they boosted asset prices and now they can't tighten monetary conditions sufficiently to bring down these asset prices without causing a significant damage”
Asset inflation, defined as inflation in non-consumer goods like homes and stocks that the Federal Reserve ignores as long as CPI remains stable, has created pronounced asset inflation over the last 30-40 years, leaving young people in Western countries unable to afford homes relative to income at historically lowest affordability levels.
“I Define asset inflation as opposed to Consumer Price inflation as an inflation that essentially the Federal Reserve does not pay attention to in other words when home prices go up the FED doesn't bother to do anything about it as long as the Consumer Price Index doesn't go up a lot and and uh they don't care if the stock market goes up but they care when it goes down that is another story so so we had in the last say 30 40 years pronounced asset inflation the result is that young people in the western world not just in America in Germany Switzerland and so for they don't have enough money and they don't earn enough uh to buy homes in other words in uh economic terms the affordability of buying homes at the present time measured statistically compared to the income of people is at the lowest level in history in the US lowest”
Governments have three and only three options to address deficits: cut spending (politically impossible in democracies), raise taxes (politically suicidal), or inflate (the option all governments throughout history have chosen), and this inflation is caused by excessive government spending combined with central bank financing of fiscal deficits.
“the US can do three things and other countries Western democracies as well they can cut uh spending of the government government expenditures that they can but no politician will be elected if he goes and says look we must tighten our belts and we have to reduce spending we cannot pay you your Pension funds pensions go and try that with the military veterans the policemen and the firemen you have a revolution in America so that option is possible but is impossible to implement in a in a democracy Now the other second option is to go to the people and say okay we have all these deficits we have to cover them we have to increase taxation I'd like to see the politician who gets elected who goes to the constituents and tells them sorry boys we have to increase taxation nobody will be elected the third option and that is the one that all governments throughout history have uh embar upon and that is inflation inflation uh caused by excessive government spending and the excessive government spending is then reflected in a fiscal deficit which necessitates the central bank to finance partially or entirely”
Government officials and central bankers never admit to making mistakes and are never held responsible or penalized for policy failures, despite occasionally offering apologies that are not sincere and do not carry consequences, creating moral hazard where mistakes are institutionalized.
“government officials will never admit that they made a mistake it's I've never seen that they will NE sometimes they apologize about some stupid remarks they make uh but they they apologize all the time and do not mean it and never are they taken into kind of or made responsible for something and penalized”
Quality bonds no longer exist because government intervention has destroyed bond markets, leaving no truly high-quality fixed-income options, requiring careful consideration of credit quality and maturity structure in bond selection.
“you can buy low quality or high quality bonds and actually there are no high quality bonds left that the government has seen to it”
A monetary inflationary super cycle driven by central bank money printing (necessary to prevent system collapse) would lift assets that cannot be quickly multiplied—such as collectibles, paintings, and real estate—to very high levels, similar to how Zimbabwe or Venezuela experienced extreme asset appreciation in their currencies despite general economic collapse.
“I think we could see a monetary inflationary super cycle where the fed and other central banks have no other option but to print money otherwise the system collapses and in a democracy it's a president gets elected for four years he doesn't want the collapse to occur under him he doesn't mind it to occur under the next president and so forth so they keep the system alive and we could have monetary inflation that actually lifts uh assets that cannot be multiplied much to very high levels that would include say Collectibles that would include paintings that would include real estate”
Successful capitalistic economies inevitably become socialist over time; Peter Schumpeter's 1949 speech (in his book 'Capitalism, Socialism and Democracy') explains this mechanism and predicts why Western world is moving left, illustrating a historical inevitability rather than accident.
“if you're interested in the subject there's a very good book it's he writes in a very uh heavy style the book is called capitalism socialism and democracy this is by sh Peter and he has a speech in there which I would buy the book just for that speech he gave the speech in 1949 just before he died he died six months later and in the speech and this is the subject of the book actually but the speech some smizes it he says he explains why a successful capitalistic economy will become socialist uh over time uh for he explains the reasons for that and I would read that because uh you will understand better why the Western World Is Now moving so much to the left”
Inflation in the 1970s started higher than current levels, but interest rates fell and rose repeatedly with inflation accelerating throughout the decade because real interest rates (nominal minus actual inflation) were mostly negative, which is the crucial distinction—and if private economists are correct that inflation runs around 7% annually despite government reports of 3%, real yields on 5% bonds are negative.
“in the 70s uh the inflation already in 1969 1970 was higher than it is now but interest rates were much higher and then they fell into 72 and then they rose again into 74 then they fell again and so for uh but basically inflation accelerated throughout the 70s because interest rates in real terms were mostly negative that is the crucial point and uh the government will say well our bond deals of say 5% and inflation is now 3% so the real yields are 2% but what if the government inflation figures are wrong I know private Economist they say the inflation is still running around 7% per anom and these are not newcomers these are people they've been publishing inflation figures for the last 30 40 years and uh they analyzed the statistics much more care carefully than government officials”
The ARK Innovation Fund run by Cathay Wood made repeated claims of 15-20% annual growth while share prices declined in early 2021 before the broader bull market topped, and the SEC failed to enforce against these claims, demonstrating the SEC is one of the most corrupt institutions protecting big boys rather than small investors.
“the last example which is very good and actually instructive is you may remember in 200 in 2021 there was a fund that performed or outperformed just about everything else and that was the arc Innovation fund run by Cathy wood and then the fund the share prices started to go down in early 2021 way before the bull market top occurred and she kept on making claims that the fund would grow by say 15 20% per anim and she made these claims repeatedly and the SEC was standing by and doing nothing which leads me to the belief that the SEC is one of the most corrupt institutions in the world”
Among young people in America, 70% believe government should do more rather than less, showing how socialism can creep into society through gradual means rather than revolution, by providing bribes (Social Security), subsidies to industries, and policies that make people dependent and voting for redistribution rather than free markets.
“the fact is the government has become very big and among young people 70% they think that the government should do more and not less uh you understand it's a very complex issue how socialism can can creep into a society the Silent Way the not Silent Way was the bolik Revolution and then you know also in China the Revolution and so for but there are ways to bring socialism in a present way into the system and uh that people then accept it because they are being bribed by the government Social Security is sort of a bribe you bribe people and then they vote for you and they vote for you policies or you you you subsidize companies entire Industries then they vote for you and that is very negative for the free market and for the cap capitalistic economy”
The US stock market capitalization has risen from approximately 50% of world market capitalization to around 70%, despite the US having only 330 million people (less than 5% of global population), indicating severe overvaluation of US equities relative to rest of world economies.
“I thought the US stock market capitalization was about 50% of the world's stock market capitalization but then I those statistics that indicate that the US is 70% now assuming it's anywhere between 50 and 70% the fact remains the US has a population of say 330 million people which is less than 5% of the world's population and the rest is uh essentially huge you know we're dealing with almost 8 billion people in this world so the 330 years 350 million do not matter very much”
Wall Street pays the fees of central bankers (speaking fees, advisory fees) and therefore directs central bank policy; when financial markets turn down, Wall Street tells the Fed to ease monetary conditions, creating structural incentive for monetary expansion.
“the moment the economy turns down the moment asset markets turn down uh Wall Street will tell the fed you better ease monetary conditions you know the pay Master on Wall Street that PID the fees of the central Bankers the speaking fees and the advisory fees they will tell them what to do”
Post-WWII, the West including America was still leading power in the world; by current time, Western leaders lack the capability and authority to make other nations comply with Western demands (contrasting Britain's historical ability to force China into ceding Hong Kong), and foreign leaders (India, China) treat Western officials as clowns.
“after the second world war the West including America was still the leading power in the world I wouldn't call them nowadays the leading power Britain would not be able to go to China and force the Chinese into handing handing Britain over the Hong Kong Island in in perpetuity and have a pay an Indemnity for of several million uh silver coins that when the foreign Ministers of Britain and Germany especially Germany and France travel to India and China and tell them about their stories about democracy and how these countries should behave and so the leaders of these countries they laugh at the clowns that come from West Europe”
ESG and green energy transition policies have had disastrous outcomes (Germany turning coal power back on and burning more coal than ever), showing that average people prioritize affording groceries over energy transition, and ESG rhetoric is slowing from political elite but those promoting these policies won't give them up easily.
“we've already seen the disastrous outcome of a lot of these policies in places like Germany where they had to turn their coal power back on um and they're burning more cold than ever uh what what are your thoughts on where we're at in the whole new green economy Zeitgeist I don't think that the Socialists and Communists that desire these policies they use them they abuse them to gain per power for themselves and their parties and their programs and so forth I don't think they'll give up I think they'll continue”
The Russell 2000 and value stocks (particularly non-mega-cap names like Nestle and Unilever) outperforming the S&P 500 and NASDAQ respectively indicates a meaningful shift in market leadership away from mega-cap tech into value stocks, suggesting that stock picking and active fund management should make a comeback.
“the recent improved performance of the Russell 2000 versus the S&P 500 and especially versus the NASDAQ and the diverging performance between Nestle and Unilever would suggest to me that stock picking is becoming more important should stock picking and active fund management not make a comeback I would at least think that a meaningful shift in the Market's leadership away from the mag s into value stocks is taking place right now”
The 60/40 portfolio (60% stocks, 40% bonds) is obsolete because it assumes traditional market relationships and diversification benefits that no longer apply in a world of synchronized asset inflation across all asset classes and negative real yields.
“is the traditional 60/40 portfolio dead at this point”
Gold has been recommended by Faber for 40 years in nearly every newsletter, and while not the best investment, it is an obvious choice in an environment of money printing, serving as insurance against government confiscation risk in Western democracies where authoritarianism has increased.
“I'm one of the few people that has been recommended gold for the last 40 years in practically every newsletter but I'm not saying this because I'm um kind of T wanting to take credit for something that has worked out gold hasn't been the best investment but it's a very obvious investment in an environment of money printing uh it's not under normal circumstances it's a very safe investment but in a world that is uh controlled by evil people in government that locked people up even in Western democracies you never know they could take the gold away but in general I think if someone have savings then to hold some of it in Gold instead of cash is a desirable uh measure to take”
Recent Western political events (US presidential assassination attempt, candidate dropout, UK police threatening overseas social media posters, male boxers beating women at Olympics, Satanic-themed opening ceremony) signal the fall of the Western Empire and are symptoms of civilizational decline comparable to the Roman Empire's 300-year decline (200 AD peak to 500 AD Western collapse).
“we saw a US presidential election upcoming where one candidate was nearly assassinated the other drops out of the race the UK police are now threatening to arrest not only people in their own country but people overseas who dare to post on social media against what they like we're seeing male boxers being applauded as strong figures for beating down women in the Paris Olympics along with basically the some we're calling it Satanic opening uh ceremony I mean it's a long list I could go on and on are we witnessing the fall of the Western Empire here”
In a potential deflationary bust scenario, gold and precious metals will also decline, but not as severely as tech stocks, making them valuable for relative value preservation within a downturn.
“if that happens for a while gold and precious metals will also go down but not as much as Nidia the fun stocks”
The US federal debt is approximately $35 trillion with annual deficits of $2-3 trillion, and when unfunded liabilities from government promises to veterans, firefighters, retirees, and corporate pension funds are added, total government obligations are enormous—far exceeding official debt figures.
“the US has a federal debt of something like $ 35 trillion doar the deficit annually is huge you know say two three trillion dollar and so the government debt keeps on going up uh the interest rates on the government debt uh have gone up and the interest payments have gone up dramatically uh the US has three options at this stage and I haven't even touched on the unfunded liabil ities of the government and the corporate sector because what you see as de is as today but not what the government owes in terms of the promises they have made to the veterans to the firen the retirees and and and and the corporate Pension funds as well so if we added all this unfunded liabilities that that would be huge”
Gold's price relative to value depends on multiple comparisons: at $35/oz in 1970 versus $2000+ today it has kept pace with price increases roughly, but adjusted for private economists' inflation estimates, money supply growth, population growth, and monetary reserve changes, gold may not be expensive at current levels.
“I could make the case that gold in 19 70 was at $35 an ounce now it's at over $2,000 so it has kept up more or less with the rate of price increases now if I would look at some of the inflation uh adjustments some private economists have made then the price of gold is probably not all that high if I look at the quantity of money in the world 1970 and today I look at the population 1970 and today I look at the monetary reserves 1970 and today and so I could make the case that gold is actually not very expensive”
Behind every socialist there is a dictator and authoritarian character; socialism is against free markets and private property—a key pillar of capitalism—and when government owns property and leases it to individuals, there is huge margin for corruption that socialists and communists love.
“socialism is not about the free market it is a against the free market it is a private property is one of the pillars of the free market and it's a pillar of people going to work when they have a property they look after it they look after the street in front of the property and so and so on but the Socialist and the Communist they want to take it away and then it's owned by the government and let out to the people to use and why because in that process government ownership and leasing it out to individuals there's a huge margin for corruption that is what they love the Socialists are out to make money for themselves”
Wealthy people in Germany are afraid to support right-wing political causes (AFD) due to fear of retaliation from socialist bureaucracy and left-wing academic institutions, creating a chilling effect on right-wing political funding.
“I know some people in the afd in Germany these are people that are in high positions and I told them uh you must get a lot of contribution from wealthy people they say no and the reason is that wealthy people are afraid that the Socialist will do harm to them”
Currently, holding cash on deposit at 5% interest may be the best option (even if not earning real returns) because other assets could decline significantly, particularly tech stocks, while cash preserves optionality and downside protection.
“I think if you can put your money on deposit now in dollars at 5% it may not make money but it may be the best option because other things could go down you understand your friends who just talked about this deflationary bus they they could be right I'm not saying they will be right but they could be right if that happens for a while gold and precious metals will also go down but not as much as Nidia the fun stocks”
Some properties are currently so inexpensive they can be acquired nearly free of charge, offering value for those seeking real asset preservation, though real estate as an asset class is mixed with commercial real estate down 50-70% in American cities.
“some properties are inexpensive they you can almost get them free of charge but I think that if each person must decide these things for himself”
Among Western nations, America may have a better chance of addressing current problems than Europe due to state autonomy and approximately 50% of Americans favoring freedom and personal choice over government overreach, though Faber doubts this will prevent decline.
“do you see amongst the Western Nations it appears to me not being an expert that America kind of stands the best chance of getting out of this mess simply because of the way that states have autonomy in many instan and how it feels like around 50% of Americans are very pro- Freedom Pro personal choice and not necessarily anti-government but anti-government overreach into their lives what are your thoughts there is is America kind of the the one maybe standout amongst all these Western Nations that's got a shot of of coming out of this thing relatively unscathed that I doubt I doubt but I agree with you that a lot of Americans are very independent and uh that they are in favor of relatively small government”
In Thailand (where Faber lives), the economy is weak and ordinary households, highly leveraged through consumer lending, are forced to liquidate gold holdings when cash flow tightens, not buy gold—a pattern occurring globally where poor people are selling gold at present time rather than buying.
“I live in Thailand at the present time the economy here I wouldn't call it a depression because it's not uh like the black and white pictures that you see from the US depression in the 1930s and here nobody's ever starving this is a country that is rich in food but uh the econom is not growing so the business is bad so what people do when the economy is bad they have to sell things because most households as you know have been leverag reached up by evil consumer consumer lending companies it's a big business and the first thing they sell is obviously not the car nor the motorcycle because they need that to take the children to school and they need the car to go to work and so forth and so on they don't sell the house because they need a house to live in so what they what liquidity they have they liquidate something that has gone up so they sell gold everywhere in the world poor people are selling the gold at the present time they're not buying”
Private property encourages personal responsibility and stewardship (people maintain property they own), whereas government-owned property encourages neglect.
“private property is one of the pillars of the free market and it's a pillar of people going to work when they have a property they look after it they look after the street in front of the property”
Investment returns will be negative for the next few years; the fundamental investing question is not 'how do I make money' but rather 'how do I lose the least money' under assumption that most asset classes will decline, requiring defensive orientation.
“in general I think that uh the Outlook to make money in assets is bad for the next few years years uh the question is what the the way to look at investment markets is to say how I'm going to lose the least money under the assumption that everything goes down how do I best navigate in in a losing War we're going to lose the war but how do we lose the least people in this war”
Most ordinary people don't understand central banking and the power central banks have, making it easier for governments to blame inflation on external sources rather than monetary policy.
“prices of bread going up and the prices of beef going up it's because of Putin or some you you know don't really blame the central bank people don't understand Central Banking and the power that central banks have”
There is currently a 6-9 month window of opportunity where bonds can rally because demand is weak (the economy is in recession in real terms, not statistical terms), evidenced by low lumber and copper prices, but after inflation improves statistically, central banks will cut rates without doubt.
“in my view we have now a window of opportunity for maybe 6 nine months where bonds can rally because and this we have to touch upon in the context of Commodities as well at the present time we are already in recession in my view other people people will disagree with that in my view looking at the reality not statistics that are published by the government in nominal terms but in real terms demand is not there so this is reflected in you know low Lumber price a relatively low copper price and so forth and so on the demand is simply not there but uh and so we could have a bond market rally for three or six months but as soon as the inflation looks a little bit better statistically the central banks will cut rates that I have no doubt about it no doubt”
Each investor must make decisions based on their local economic environment; someone in Serbia has different considerations than someone in Thailand, Argentina, Brazil, or Colombia.
“I think that if each person must decide these things for himself because if you live in Serbia you have a different economic environment than I who live in Thailand number two someone living in Argentina or Brazil or Colombia and so he has a different environment”
The Roman Empire peaked around 200 AD under Trajan, took 300 years to collapse in the West (around 500 AD), but the Eastern Roman Empire lasted another 1000 years until 1453 when Ottomans conquered it, whereas Western Empire decline is accelerating and will move faster than Rome's due to deteriorated conditions over 40 years.
“the Roman Empire must have peaked out say around 200 ad you know under traion and afterwards it took for a long time until it collapsed in the western world around the year 500 Western Rome disintegrated and you know was no longer relevant but it's interesting in that Rome stayed as a relevant city in the world because of the church and the Eastern Empire actually lasted another thousand years until 1500 1453 when the Ottomans took it over so I think it will go faster with the Western Empire because uh the conditions have deteriorated considerably in the just 40 years”
George Orwell's 'Animal Farm' illustrates how socialist leadership (the pigs) pursues self-enrichment rather than collective benefit, modeling the nature of authoritarian socialism.
“read animal farm by George Orwell this is the pigs are the Socialist leadership”
Faber's own tax investigation by Zurich tax authorities, despite paying taxes on his Swiss property, demonstrates how socialist-controlled bureaucracies conduct harassment campaigns against politically unaligned wealthy individuals, even when the investigation costs exceed the amount that could possibly be collected, suggesting selective enforcement driven by political ideology.
“the tax office of Zurich has now come to me regarding tax issues I'm not liable for taxes in Switzerland but I'm liable for taxes on a property I have in Switzerland but I always pay tax you can't avoid doing that the question is did I pay uh exactly what I had to pay or did I pay a little bit less a few hundred dollar less a year or a few hundred more the investigation will cost the government much more than they will ever collect from me”
Faber is 78 years old, lived outside Switzerland for 50+ years, and his home country has changed so radically in that time that he no longer recognizes it, with his family roots in a mountain village that originally formed the Swiss confederation centuries ago.
“I go back to Switzerland I I don't recognize my country anymore and if I say my country people will say well how do you know it's your country I know it because my family is from I mean my mother's family is from a Mountain Village and in the in the smallest part of Switzerland that originally formed the Swiss uh confederation so we have been there for a long time so I can say we're our country”
Faber is a vocal opponent of socialists and communists; as an economist he is 'very right' and market-oriented, capitalist-oriented, believing companies should go bankrupt if underperforming, and has evidence of personal retaliation from socialist bureaucrats and university professors due to his political positions.
“I'm a vocal opponent of socialists and Communists and anything left for me even the right-wing parties of say Switzerland Germany are not enough to the right I'm far more right in my economic philosophy not so much in terms of racial philosophies that I'm not interested in but as an economist I'm very right and very Market uh oriented very capitalistic oriented I think uh companies should go bankrupt if they're not performing and so forth and so on anyway the wealthy people they are afraid to support the rightwing causes because uh suddenly the Socialists who are the bureaucracy they give you a hard time or the professors at University they can give you a hard time I have evidence clearcut evidence of cases”
Faber maintains a diversified portfolio including shares and fixed-interest securities, believes bond markets offer significant profit opportunities through macro analysis of interest rate cycles and portfolio structuring across maturities and quality levels.
“I have a diversified portfolio I own shares uh mean you know everybody has a different investment philosophy uh I I would have friends they would say Mark you're crazy we invest totally differently than you we have Bitcoins and we have a solanas and so forth and we have grow stocks and we have Nidia and so forth and so on I have always been a oriented towards a large portion of my funds in fixed interest Securities because the fixed interest Market the bond market you can make a lot of money uh as a macro analyst analyzing interest rate Cycles”
Recent corrections in the commodity sector (copper, coal, uranium, oil stocks) and the Nikkei 225 index (down 20% in a couple of trading days) are significant warning signals, but Faber does not clearly characterize them as either normal consolidation or harbingers of deeper market stress, leaving the interpretation ambiguous.
“we we saw a correction in in the broad Market although a small one people were panicking on social media the correction extended more significantly into the commodi sector where copper coal uranium oil stocks faced quite a significant downturn and are still recovering and of course the Nik notably took a major dive I believe it was 20% or so over a couple of tra in days what are your thoughts there is this just a blip on the radar or is this a sign that there's more weakness to come does it make you want to sit on the sidelines in cash right now”