Though stories about the president continue to dominate the American media, there are serious and worrying developments afoot in the rest of the world. Perhaps most notable is North Korea’s recent threat to teach us a “severe lesson.” Despite the growing uncertainty, U.S. equities continue their climb skywards. This week, we feature the legendary Dr. Marc Faber on our podcast. Faber is a renowned market sage and the publisher of THE GLOOM, BOOM, AND DOOM REPORT — a newsletter absolutely essential to anyone seriously interested in investing and the markets.
Faber has a reputation as a bear — an incorrect reputation. He has often been loudly, and correctly, bullish (he was one of the most vocal proponents of the massive buying opportunity that stretched through the spring of 2009). In this week’s episode of the Rostrum, he tackles a subject on the mind of every serious market observer. Given that we seem to have entered a truly explosive phase of an economic expansion ongoing since things bottomed out in 2009, is there still real value to be found? Faber argues there is — it might be harder to spot and it might not be as deep as it was in the aftermath of the financial crisis, but sharp-eyed investors will find intriguing opportunities in Asian markets, Eastern European markets, precious metals, and real estate. He also gives his profile of geopolitical risks — U.S.-Russia tension is a big one, and one he does not see being resolved anytime soon — with an interesting detour into his views on cryptocurrencies. Faber also outlines his thinking on the ever-renewed central bank follies that are, we think, contributing to the tear equities have been on, and gives his thoughts on one of the big questions facing investors at the moment: are we entering the age of passive management or will active management make a comeback?