In the Heart of Asia

Featuring Marc Faber

Marc Faber is the author of the Gloom Boom and Doom report and his insightful views on Asia and the wider economic picture are based on his experience spanning five decades in the region. Marc isolates the best investment opportunities in Asia, as well as how to approach them, in typical charismatic style, along with his views on the likely endgame for the great monetary experiment. Filmed on May 25, 2017, in Orlando.

Published on
3 July, 2017
Topic
Frontier Markets, Asia, Global Investment
Duration
63 minutes
Asset class
Real Estate, Equities, Bonds/Rates/Credit
Rating
41

Comments

  • ek

    eric k.

    1 10 2017 05:34

    0       0

    Never knew he was such a funny guy

  • AF

    Andrew F.

    28 9 2017 10:19

    0       0

    What a brilliant interview with Marc and an eye opening interview at that. Thanks RV

  • TS

    Timothy S.

    23 9 2017 02:05

    0       0

    Next run of QE I’m moving to Asia . Hope to be as jolly when I’m his age. Awesome to hear some contrary views.

  • RE

    R.P. E.

    5 9 2017 17:54

    0       0

    Myanmar!! Yes yes. Hard but the upside is unrivaled anywhere.

    • ek

      eric k.

      1 10 2017 05:34

      0       0

      What's the best way to invest? MIL listed in London?

  • KB

    Kenneth B.

    25 8 2017 14:20

    0       0

    Finally, some truth from white male investors for their interest in Asia ! :)

  • MH

    Michael H.

    17 7 2017 14:00

    4       0

    The day the markets collapse RV needs to run a loop video of Dr. Faber laughing uncontrollably, legs up on table, so on and so forth! :)

  • MH

    Michael H.

    12 7 2017 13:54

    2       0

    One night in Bangkok and the world's your oyster, The bars are temples but the pearls ain't free!

  • EC

    Edward C.

    9 7 2017 11:46

    1       0

    What a legend.

  • WS

    Wouter S.

    9 7 2017 03:12

    2       0

    Thanks RealVision, Mark is a genuine legend (at least for me). The simplicity with they way he looks at asset classes is what makes him so good. I remember watching a 2003 interview where he basically predicted the commodities boom (beyond gold, petro, metals).....as we know he was spot on in the years after that. Great to see him on RV!

  • GA

    Giedrius A.

    8 7 2017 23:24

    0       0

    Simplicity makes it beautiful to understand and enjoy!!! Thank you

  • PB

    Pieter B.

    7 7 2017 11:19

    8       0

    Fantastic interview! Please get another Swiss legend for interview: Felix Zulauf

  • RS

    Rohinee S.

    7 7 2017 07:09

    2       0

    what a brilliant interview! so many gems here :) Thank you RVTV !

  • BE

    Baha E.

    6 7 2017 09:54

    5       0

    Invest in a Thai massage parlour!

  • DY

    Dmytro Y.

    6 7 2017 06:04

    2       0

    Thank you RVTV for a brilliant interview.

  • MB

    Michiel B.

    6 7 2017 05:39

    6       0

    Did he just say he's racing motorcycles? What a legend!

  • PS

    PD S.

    6 7 2017 02:50

    6       1

    great interview by grant as always. i love marc faber, he is da man. i might disagree with many of his views, but i like and admire him. to be around as long as he has and still in the game is something to be respected.

    i also liked the anecdote about how he said he lives a "very good life" in chiang mai, thailand for ~10% of what a comparable lifestyle would cost in the US. and i know he must live well. perhaps i need to hang it up and go live the life on surabaya beach, thailand. that is, provided they have decent broadband internet access so i can trade and make $$ ;)

  • AC

    Andy C.

    5 7 2017 19:15

    2       0

    How long has Marc Faber been a bear for?

  • FG

    FundamentalAnalysis G.

    5 7 2017 18:33

    4       3

    Saying FANG stocks can go down 90% is a bit farfetched, unless we have a major depression, a computer glitch or some new company outcompetes them. Yes they are expensive, and I've not delved into the details re: Netflix or Google. But Facebook and Amazon both generate a lot of free cash flow. Amazon re-invests for future capital growth. (Let's not forget Amazon once physical shop sales move online...amazon can always jack up the price via its "monopoly" power taking all the revenue increases straight to the bottom line. Facebook has also delivered on its margins and free cashflow over the years about 6years ago it had a P/E of 100 (and that valuation at that time was proven to be justified 6years later as revenue, earnings, cashflow and margins ALL grew....Amazon is pricing in a lot of future potential growth time will tell whether its successful. My point being that unless you really understand what's behind these company it is stupid to short some of these stocks. I've heard so many bear commentators, I would actually challenge them by asking have you bothered to understand the business/industry and/or have you read the annaul report. (I doubt it in many cases). Facebook/Amazon are not worthless crappy tech stock that many saw during the late 90s. No doubt they are expensive but shorting is a dangerous game....nothing has suggested revenues/earnings/cashflow will fall quite yet......

  • GR

    George R.

    4 7 2017 18:10

    5       1

    Grants foot is annoying

    • AC

      Andy C.

      5 7 2017 19:15

      0       0

      knee. lol

    • ii

      ida i.

      6 7 2017 09:25

      0       10

      Faber's stereotypes are annoying

  • RR

    Raj R.

    4 7 2017 16:50

    10       0

    Golden words - "if you are sitting on huge losses, it is better to liquidate. Your thinking is clouded when you are sitting on losses. You will many opportunities to make money". Just had to take a hu

  • TS

    Thomas S.

    4 7 2017 16:11

    23       0

    I began following Dr. Faber when he first appeared in Barron's round table, I believe right after Drexel blew up, because it was obvious he saw the world from an independent perspective. What a treat it is to soak up the wisdom of someone who has experienced so much. I once attended a luncheon where he was speaking...showed up with my copy of his book Tomorrow's Gold to get it signed. The thing I remember most from that book is the way it described how capital flows worldwide like water seeking pressure equilibrium. In today's world of cartel rigged monetary flows and asset prices those flows have been artificially dammed and misdirected, but how long can this last, or how long will we go along with the nonsense? Mark's comment about the banking cartel being able to, in theory, buy up the entire equity market should strike panic in the hearts and minds of clear thinking men. But I suspect most will just wonder how they can make a buck from it. There's a fundamental difference between money created by central banks to buy sovereign debt denominated in the currency they are licensed to print, and money created to buy any other asset, the latter being tantamount to abject theft. Why people do not see this is beyond perplexing.

  • JM

    James M.

    4 7 2017 15:43

    2       0

    Really enjoyed this piece, thanks. I have thought for a while the "ratio" of city to country real estate in many countries/states is something to look at and this is the first time Ive heard a big name mention it. Normally the chat is all about increased urbanisation. Something for everyone in this interview.

  • VS

    Victor S.

    4 7 2017 13:23

    3       0

    Marc is always great because he speaks honestly about how the govts of the world actually are .

  • vt

    vadim t.

    4 7 2017 10:36

    6       16

    that's the gold nonsense... Grant, you need to stop push it, when gold dives again soon let say under 1000, Faber will be just fine, but a John who put 25% of his savings in gold and will likely to lose job or income while watching his gold holding melting will get very angry and turn it on you and RV and i must say it would be partially fair. There is a huge difference between having 100mln and put part of it in different places and 500k.
    Like they say: Don't try this at home.

    • TM

      The-First-James M.

      4 7 2017 12:53

      6       0

      Just got to be sensible about how you scale into Gold. I've easily got 25% of my assets in the metal and I sleep well at night. I'm also not a millionaire. A 50% drawdown would not wipe me out, because I'm not leveraged in anything, apart from a small amount in FX trades. The miners on the other hand... Caution advised at the present time. These are trading vehicles, not long term investments. I've lightened up big time this week as it's looking like the next big move in Gold is down. On this note, Realvision interviewees have been a wealth of good advice.

    • M

      Mark .

      4 7 2017 17:00

      9       0

      Gold is never going to be very risky until we get some decent real interest rates ***AND*** Western governments can demonstrate that they aren’t going to blow up from their unfunded liabilities. I’m not holding my breath.

    • RE

      Renato E.

      5 7 2017 08:36

      3       0

      > There is a huge difference between having 100mln > and put part of it in different places and 500k.

      10% is 10% - In my opinion, it has nothing to do with the amount of money you own or you are able to invest.

    • ii

      ida i.

      6 7 2017 09:31

      3       0

      Yes but I have been following Marc Faber for a long time, I was subscribed to his newsletter, and when he speaks he seems to have no doubts. for those of us with 20 years of experience that is fine, I know how to filter the information, but for people with less experience, they can make bad short term mistakes if they take his self assured style for market certainties. If he sells gold through one of his businesses and earns commission on the sales, that is a big conflict of interest which should made very clear.

    • RE

      Renato E.

      8 7 2017 10:33

      4       0

      I see your point. On the other hand, I really hope that subscribers to RT don't rush out and copy everything an expert does or recommends. RT gives you various views from different people in the market - that's it. It is your task to process the information and based on that, to make your own decision. If people are unable or unwilling to do that, than trust the bank with your money - you can't have it both ways, imho.

  • JS

    John S.

    4 7 2017 10:00

    8       13

    Faber, wonderful guy.

    Analysis of wealth:

    Currency-ultra rich: equities, dollars, gold, real estate

    Health: needs to be made better. More vegan, raw foods.

    Spiritual: Always more Jesus. You better think of whats next after this life.

    Wealth is a combination of spiritual (Jesus), health (raw foods, exercise), currency (equities, dollars, real estate gold). Don't miss out.

    Thank you and live a great life. God bless you.

  • ES

    Edward S.

    4 7 2017 04:37

    15       0

    His backhanded compliment of Facebook was hilarious. Great interview so far

  • GS

    Greg S.

    4 7 2017 03:21

    3       0

    His approach is not far off an investor's from the 70's and 80's - Harry Brown.

    • DS

      David S.

      4 7 2017 17:58

      2       0

      Big difference in Dr. Faber's allocation is the 25% in positive cash-flow property diversified around the world. Harry Brown portfolio had 25% cash, as I recall, and no stated allocation to property. DLS

  • DS

    David S.

    4 7 2017 00:18

    4       0

    Thanks for a better-balanced interview with Dr. Faber than we see elsewhere. My major takeaway was the emphasis on positive cash flow investments balanced with cash or cash equivalence bonds. If we get a 50% haircut, some or all the positive cash flow investments will change to negative. You need cash or cash equivalents to maintain your lifestyle, your formerly positive cash flow investments and to hopefully invest at rock bottom prices. It would be interesting to see Dr. Faber’s term structure on his 25% bond/cash equivalents. In addition, does Dr. Faber think gold might go down in a crisis before it would go back up? Is this why he likes 25% in gold? DLS

  • M

    Mark .

    3 7 2017 22:08

    12       0

    I have have subscribed to Marc’s letter for four years at least. The best part of it is the philosophical, sort of general libertarian analysis or suggestions of how to think about things beginning of every one. There is nothing else like it. Very, very helpful and worthwhile. It’s like the best parent, mentor, or uncle you never had.

    • M

      Mark .

      3 7 2017 22:41

      4       0

      Also, I think his approach is the best. It’s pretty safe and his general opinions at turning points are just dead-on. You may need some help on how to allocate his individual stock picks.

  • KB

    Kreso B.

    3 7 2017 21:37

    4       21

    Broken clock.

    • GS

      Greg S.

      4 7 2017 03:14

      7       0

      Broken clocks are saying "time out", while the rest of you crazy people watch your working clocks. "Time out" to me means precious metals.

    • DS

      David S.

      4 7 2017 23:23

      2       0

      "Time out" for me is also cash. Harry Brown portfolio was 25% each in gold, cash, long-term government bonds and equities. You will not want to sell gold when it is rising to pay for expenses or to buy depressed assets. DLS

  • AM

    Alan M.

    3 7 2017 21:11

    12       0

    Golden interview, thought provoking, insightful, entertaining ....reinforced sense of diversifying beyond just asset classes !!

    • KS

      Kim S.

      4 7 2017 01:06

      3       0

      Exactly. I find it amusing how some young financial advisors think a pile of financial instruments are true diversification

  • HS

    HANA S.

    3 7 2017 20:39

    6       0

    What a great interview! Yes, there certainly have been times in Europe, where real estate proved to be the worst investment. Not only in East Germany, in all of the Soviet satellites ...Marc is so right on geographic diversification! Thank you RV for having him on!

    • TM

      The-First-James M.

      4 7 2017 12:48

      1       0

      That's the problem with Real Estate. You can't just hide it in a tube of toothpaste/stick it in a suitcase and move it elsewhere...

  • RD

    Ryan D.

    3 7 2017 20:27

    2       0

    Great job again RV! What will go up and what will go down, and what might not be around.

  • JL

    John L.

    3 7 2017 20:16

    2       0

    Well done. Thank you
    John L

  • MS

    Michael S.

    3 7 2017 19:09

    8       0

    What a delight and reminder of what it really means to be an investor today. Dr. Faber, as a thinker/investor, must be on the endangered species list.

  • DB

    Douglas B.

    3 7 2017 18:40

    13       0

    No matter whether Faber is right, wrong, or early in his predictions, he is always a highly entertaining interview.

  • MN

    Mark N.

    3 7 2017 18:16

    8       0

    At first I thought someone like Marc who has been so consistently 'early' is below the level that RV should aspire to, but after watching this interview my opinion on him has definitely shifted for the better. A wealth of wisdom and knowledge.

  • EF

    E F.

    3 7 2017 17:20

    11       0

    This guy is nothing short of epic. Totally agree with him on geographic diversification of real estate not only because of potential loss but very likely taxation above certain price levels... I would add that because of social media the nature of a social uprising might differ greatly from those of the last 200 years, take the Arab Spring as a road map (internet shutdown apart which I can only imagine would cause riots in itself?). I also share his concerns about being able to deploy your cash in time in many scenarios, I've been joking for a while that the most underrated asset in a systemic event will be used 20s withdrawn legally with a receipt from your bank and stored elsewhere.

  • EL

    Elizabeth L.

    3 7 2017 16:44

    2       0

    Yes, I too truly enjoyed your c conversation. Thanks.

  • FG

    Fred G.

    3 7 2017 16:13

    17       0

    What a great interview. In my opinion, one of the greatest benefits of RealVision is the opportunity to hear from people like Marc for over an hour vs a 3 min segment on CNBC. Marc has clearly been bearish for a long time and as he alluded to in the interview, he is probably just early but not necessarily wrong which is a very sobering thought indeed. My main takeaway is broad diversification across not just asset classes, but legal jurisdictions can help to protect your wealth and we should all hope that we walk away with only a 50% haircut as and when the time comes..

  • RM

    Ronnie M.

    3 7 2017 16:07

    10       0

    Love Marc! Thanks for having him on.

  • TS

    Thomas S.

    3 7 2017 16:07

    55       0

    Facebook: "It appeals to the vanity and stupidity of human kind". Golden. :)

    • JM

      John M.

      3 7 2017 19:38

      0       0

      Yes, so true.

    • DP

      David P.

      4 7 2017 11:15

      4       0

      Quote to share... on Facebook? :)

  • AS

    Andrew S.

    3 7 2017 15:51

    8       0

    Great interview. Marc Faber's 2002 book "Tomorrow's Gold: Asia's Age of Discovery" had a huge influence on me helped me make a lot of money. I am always interested in what he has to say.
    25% in gold is a good number depending on the size of your portfolio but 0% in bitcoin I can't understand.
    You can own both ( really ). I personally have 20X as much exposure to precious metals but can't imagine not having any exposure to bitcoin.

    • GS

      Greg S.

      4 7 2017 02:21

      1       0

      My advice to all who ask me about investing is "invest in only that which you understand". If I follow my own advice, Even after reading what is available out there, I find I don't have a true understanding of what is going on with bitgold (or any of the myriad others). If I put on a position, it will be sized accordingly and done for a purely speculative purpose.

    • JS

      John S.

      4 7 2017 10:05

      4       1

      He just doesnt really get bitcoin. He's old school and doesnt need it. When you make a transaction in btc you understand how powerful it truely is.

    • DS

      David S.

      4 7 2017 23:44

      0       0

      Block chain will be huge and SOP. The value of Bitcoins, however, has a political risk. What would happen if China make it illegal for Chinese citizens to use Bitcoins? DLS

  • BF

    Bruce F.

    3 7 2017 15:04

    4       0

    fabulous. truly one of a kind