Faber Vs. Schiff

Faber Vs. Schiff: "a magical combination".

Marc Faber points out:
Stocks are going to decline (consistent with the overly bullish sentiment in the market), in particular technology stocks.
Bonds can rally a little bit, but are not to be held for the long term by investors as sovereign bonds will not be safe.
U.S. dollar is very weak, even against the euro.
Marc buys gold every month.

Peter Schiff points out:
There are many shorts in the euro who need to sell out, so he's betting on a decline in the U.S. dollar.

 

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Marc Faber Interview

Interesting interview for your "tea" time.

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Marc Faber Vs. Jim Rogers

Two of my favourite guru's against each other, that will be a fierce fight (and funny too). But it turned out to be not much of a fight as they agree with each other, except for stocks.

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Marc Faber Interview OneRadioNetwork

It's been a long time since we had a long interview with Marc Faber.

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A Quick Look at the Top 5 Pharmaceutical Companies

While Marc Faber is predicting that the stock market will be lower in a few months, he suggests that investors diversify into the pharmaceutical sector. The reasoning behind this is that during a stock market crash, the pharmaceutical sector will be less hurt by worsening market conditions. Pharmaceutical companies provide a stable dividend and their products are less dependent on economic cycles.

There are many pharmaceutical companies for investors to put their money in, but I suggest to choose for the big companies as you will be sure to get a stable dividend with the lowest risk profile. Smaller biotech companies are too speculative to invest in. I'll discuss the top 5 pharmaceutical companies (by revenue) in this article. These are Johnson and Johnson (JNJ), Pfizer (PFE), Roche (RHHBY.PK), GlaxoSmithKline (GSK) and Novartis (NVS).

When choosing companies in the large pharmaceutical sector, the P/E ratio is the most important. There is a difference between brand-name companies and generic drug companies. The generic drug companies (like TEVA or a division of Novartis) basically sell the same drug as brand-name companies, but at lower prices.  Additionally, they don't have the problem of patent expiration. On chart 1 we can see that the P/E ratio for the pharmaceutical sector has been falling, bringing in nice valuations currently at a P/E of 16.6 for big pharma and a P/E of 18 for generic drug pharma.

Chart 1: P/E Ratio Pharma

A summary of the P/E ratios for the 5 top pharmaceutical companies is given in table 1. Based on this table, GlaxoSmithKline would be the most inexpensive company.

Table 1: P/E Ratio of Big Pharma

However, there are other things to consider when choosing to invest in a pharmaceutical company. It is important to look at the dividend and the product pipeline of the company, especially their "patent cliffs".

Read about it here.

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Marc Faber: Middle East Conference 2012

At long last, Marc Faber showed up again on a conference. This time it's the Middle East Hedge Funds World Conference 2012.

Enjoy!

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Allana Potash: Update

Agriculture has been in a bear market since February 2011 as evidenced by the Rogers Commodity Index for Agriculture (RJA). But surprisingly, since June 2012 something interesting happened. We got a spike of 16% in the agriculture price due to supply concerns in the corn, soybean and wheat market (Chart 1). This spike is also felt in stocks like Potash Corp. of Saskatchewan (POT) and Mosaic Company (MOS). As agriculture prices increase, so will the fertilizer prices increase.

Chart 1: Rogers Commodity Index Agriculture (RJA)

Agriculture is one of the sectors I'm very bullish on and it's not just me. Marc Faber's recent outlook for agriculture has been very positive. Marc Faber expects more weakness in industrial commodities, though he said agricultural commodities "look better".

In the past year, fertilizer developers have been decimated. One of these developers: Western Potash ( (WPSHF.PK ), had additional problems due to development doubts in their project due to market speculation that a deal with a potential Chinese investor in the company fell through. Another company, Ethiopian Potash (FED) has been on the brink of collapse due to its dire financial situation. And more recently, BHP has been exiting Ethiopia due to weak exploration results.

On the other hand, Allana Potash (ALLRF.PK), which I talked about in this article, had increasingly positive news over the past year. Though, the share price hasn't increased yet (Chart 2).

I will give a quick update on Allana Potash in this article.

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Marc Faber: Gold Has Bottomed Out

According to Marc Faber, it's better to invest in corporate bonds than treasuries. Even equities in Asia will do better because of the high dividends, which are around 5-7%.

He also believes that gold has bottomed out at these levels.

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Marc Faber And the Australian/Chinese Real Estate Market

In this article I want to present the status of the real estate and commodity market in Asia, with its implications on the global economy.

On "The Money and Wealth Show", Marc Faber has been talking about movements in the real estate and commodity markets. He talks about similarities between the Great Depression and the current crisis.

Marc Faber notes: "Eventually the financial system will cease to exist." Suggesting we will at some point go to a barter system. This barter system has already showed up in Greece at this moment. He also mentions that Australia's housing market is in the process of deteriorating (Chart 1).

To see the whole analysis, go to: Marc Faber on the Australian/Chinese Real Estate Market.

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Marc Faber on the Financial Survival Network

Let's listen to Marc Faber's view on the Western Economies. He advises us to finally think about what to do when there is a complete credit collapse. You need to buy real assets.

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Marc Faber on the Alex Jones Channel

Another status update on the economy with Marc Faber.

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