Saturday, July 14, 2012

Marc Faber : The Economic Situation in the US worse than 10 years ago

Marc Faber : ...well very clearly compared to say ten , twelve years ago the financial condition of the US has deteriorated because A the medium household have lost money and B the real income are down for the majority of people in other words the medium household income is down and the debt level and as I just mentioned the unfunded liabilities are up very substantially - in a Slovak Radio interview 

Wednesday, July 11, 2012

Paulson Losses Grow As Europe Bet Hurts

An already very bad year is looking even worse for hedge fund industry titanJohn Paulson after a bet against Europe lost many of his funds more money last month.

For the year, one of Paulson's biggest portfolios, the Advantage Plus fund, is off 18 percent. His gold fund is down 23 percent and June's declines took a bite out of the gains in some of his other funds, according to two investors familiar with the numbers but unable to discuss them publicly.

The numbers put Paulson among the $2 trillion hedge fund industry's worst performers, a dubious distinction he first earned last year when the Advantage Plus fund lost more than half its value.

Paulson, who earned $15 billion with his bet against the overheated housing market, has been closely watched for years as thousands of wealthy investors poured billions of dollars in new money into hedge funds.

Known for making big bets and sticking with them for a long time, Paulson now looks out of step with the industry, where the average fund gained 1.7 percent during the first half.

His assets have shrunk from $38 billion in early 2011 to about $22 billion now.

Source :

We have a lot popular investors over years. But, none of them can be right on every time. From Ken Heebner, David Tepper and John Paulson. None of them can stay their extraordinary performance in Hedge Fund industry, for consistent performance.

For me, Warren Buffet is no.1 because he always stay steady and easy in his investment strategy. No speculation. 

Jim Rogers @July 2012: When things are collapsing, all sorts of strange things happen I read a report by the Economist Phil Verleger, who thinks that the Saudis' massive increase in oil production, along with other economic problems could cause oil prices to crash to $40 a barrel oil and $2 a gallon gasoline by November. Do you think this is a reasonable forecast, and we could see oil at these levels? 
Jim Rogers: We could see anything. We certainly saw lower prices than that back in 2008 when there was a collapse. When things are collapsing, all sorts of strange things happen. We found that out in 2008, and we will probably find out in the future, as well. If oil does go to $40, that means it'll just be setting up an even more bullish scenario for the duration of the bull market.-in Oil Price

Marc Faber @JULY 2012: The European Banks Are Sick

Marc Faber :" ...If you put one or a hundred sick banks in a union it does not change the fact that they are sick , in my view the markets are rallying because they were grossly oversold and when markets are grossly oversold especially markets of Portugal Spain Italy France then any news that is not a disaster is propels stocks higher ..." says Marc Faber , publisher of the Gloom, Boom & Doom report, talks about his strategy for European stocks and the outlook for the EU debt crisis. Faber speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg) 

Video Clip Link :

Tuesday, July 10, 2012

Marc Faber @July 2012: We have a Spiral on the Downside

Marc Faber : We are in recession in Europe We have an economic slowdown in the U.S. and we have not really recovered in the U.S. from the lows of 2009 and we have essentially a slowdown in economic growth in Asia and we have sliding commodities prices , so the commodities producers they have less money to buy goods and so we have essentially a spiral on the downside.

Monday, July 9, 2012

Breaking News in Malaysia : Who's the man behind Petron Corp?

Answer is

Mirzan Mahathir
Encik Mirzan Mahathir has been Non-Executive Director of Petron Corp since July 12, 2010. He is the Chairman and CEO of Crescent Capital Sdn Bhd, a Malaysian investment holding and independent strategic and financial advisory firm which he founded. He graduated with a Bachelor of Science (Honours) degree in Computer Science from Brighton Polytechnic, United Kingdom in 1982 and obtained his Masters in Business Administration from the Wharton Business School, University of Pennsylvania, USA in 1987. He worked for IBM and Salomon Brothers before striking out on his own. His core experience and skills include strategic management, investment banking and logistics. Currently, he holds directorships in several public companies in South East Asia and USA. He also serves as President of the Asian Strategy & Leadership Institute, Chairman of several charitable foundations, a member of the Wharton Business School Asian Executive Board and the Business Advisory Council of United Nations Economic and Social Commission for Asia and the Pacific.

Comments :-

Dr Doom Nouriel Roubini Says 2013 `Storm' May Surpass 2008 Crisis

New York University Professor Nouriel Roubini discusses "greedy" bankers, the euro-zone crisis and risks facing the global economy in 2013

On Banking culture: He said, nothing has changed since the global financial crisis. Incentives of bank management is still aligned with getting superior results with cheating and immoral means. Only way to counter this is to break up these financial supermarkets. There are conflicts of interests as same banks are on the both sides of the deal and that is a fundamental problem and increases the risk. If this is not minimized financials crisis will keep on coming. People have to go to jails to change this culture which has not happened, atmost what happens is some fines is inflicted and that is not going to change the culture.

On European Crisis: EU summit was a failure. Spain yields are still high. Reality is market was expecting much more.

Marc Faber @JULY 2012 : Bullish on Equities in Portugal Italy Spain and France

Marc Faber : In my view the markets are rallying because they were grossly oversold and when markets are grossly oversold especially markets of Portugal , Spain Italy France then any news that it is not a disaster news propels stocks higher " says Marc Faber adding that what Europe did is just a cosmetic fix that does not solve the long term problems of over indebtedness in the Eurozone , " Portugal Spain Italy and France the markets are either at the lowest of March 2009 or lower and along with that companies and the banks also reasonably good companies have been dragged down and so I see value in equities regardless if the Eurozone stays or is abandoned

Sunday, July 8, 2012

Marc Faber: Investing opportunities in Italy, Portugal & Spain

Dr Marc Faber is interviewed by a Slovak Radio via phone directly from Thailand,He talked about the situation in the U.S., EU and Asia, and gave his opinion on precious metals. 

Question : Yesterday (05 July) The ECB cut its base rate to a historic low and the conditions for release of collateral to banks. This will help Europe? 
Marc Faber : I do not think so. I think whatever now the government will undertake may postpone the problems but it does not solve them , and the problem is too much debt. I mean I would say how long would the Germans essentially be willing to finance the excess consumption in Spain, Italy, Greece and Portugal and so forth . And I would like to add that although the situation is not ideal in these countries and these countries are close to the lows in 2007-2008 and may even fall even lower, there are decent companies in Spain Italy and Portugal that are now relatively cheap and in which Today, in my opinion is worth investing. I see real value there.