Tags: Trump Administration | marc faber | donald trump | fed | QE4

Marc Faber: Trump Will Soon Be 'Begging Fed for QE4'

(Getty/Gokhan Kurtaran)

Wednesday, 11 January 2017 02:12 PM

Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” warns that President-elect Donald Trump's economic and financial blueprint won't be enough to revive the sluggish economy.

Faber predicts Trump will soon be turning to the Federal Reserve for help.

Ultimately, Faber expects that the economy will stall out and deficits will rise, forcing Trump to go "begging the Fed to launch QE4," which will cause the dollar to weaken and "precious metals to go ballistic," Faber told CNBC.

"Mr. Trump is pro-business, so it's natural that the mood has improved among the small-businessman, corporations and investors," Faber said. 

But even as Faber expects equities to keep rising, he noted that stocks are only climbing to a "higher diving board" and it will "not be very friendly" to investors if things start to turn, CNBC.com explained.

"I think Mr. Trump will have a better economy, but that doesn't necessarily mean that asset prices will go up, because they are already grossly inflated," he said.

"If someone wants to be in the market, and I always have part of my assets in equities, then I think other markets than the U.S. are more attractive," said Faber. He noted that in 2017, Argentina, Brazil and the emerging markets ETF are already outpacing the S&P 500. "Foreign markets will outperform the U.S., and if both go down then the U.S. will go down more," he added.

"The only space I like in the U.S. is essentially gold shares, silver and platinum. You have great gold mining companies in the U.S.," he explained. Gold prices are up 3 percent so far this year with the miners rising more than 8 percent in the same period. "I think that gold has performed fantastically well," he added.

Other respected economic voices are more certain that Trump will truly indeed "Make America Great Again."

Veteran financial guru Larry Kudlow, who served as the Trump campaign's senior economic adviser, predicts to Newsmax TV that the record-setting stock rally “may go on for years” because the market “likes what it sees” before the president-elect has even officially taken office.

Stocks could drop in a natural turn of events, but for the most part, get ready for more record-high stock-market finishes, he recently told Steve Malzberg on “America Talks Live.”

“The Trump rally may go on for years,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

“It's not going to go on uninterrupted, but the market is telling you it likes what it sees regarding new economic policies to help business and to help growth and help jobs,” said Kudlow — host of "The Larry Kudlow Show" and author of  "JFK and the Reagan Revolution: A Secret History of American Prosperity," written with Brian Domitrovic and published by Portfolio.

(Newsmax wire services contributed to this report).

© 2019 Newsmax Finance. All rights reserved.

   
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Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” warns that President-elect Donald Trump's economic and financial blueprint won't be enough to revive the sluggish economy.
marc faber, donald trump, fed, QE4
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2017-12-11
Wednesday, 11 January 2017 02:12 PM
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