Tags: marc faber | trump | contrarian | invest

Marc Faber's 'Contrarian' Trump Strategy: Buy Gold, Emerging Markets

(Dollar Photo Club)

By    |   Wednesday, 30 November 2016 01:53 PM

 

Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” says the savvy investors will know the right moves to make amid the current rally as the stock market continues to bask in Donald Trump’s election victory.

Faber suggested many investments that appear contrarian, including gold and emerging markets. He sees opportunity in some other beaten-down assets, such as the euro and bonds.

However, he warned investors to stay away from assets that have rallied, like the U.S. dollar.

Shrewd investors should seek stocks that are "oversold, and avoid the sectors that are overbought," he told CNBC.

Faber said emerging markets, on a losing streak since Election Day, might now be a bargain buy. He cited Brazilian and Russian stocks, which have been "very miserable performers” since 2011.

"I think that in 2017 my recommendation would be to overweight emerging economies, and I would also overweight Europe, partly because I think that the sentiment about the U.S. dollar is far too optimistic. I think the dollar is terribly overbought and overvalued, so I wouldn't get into the U.S. dollar at this time," Faber said.

Gold, commonly touted as a haven in times of economic troubled, has plunged about 7 percent since Trump’s victory as a sign of faith in the president-elect’s campaign vow to “Make America Great Again.”

Gold and shares of the gold miners are "attractive" at the lower levels, Faber said.

Faber did caution not to put too much faith in the U.S. stock market rally. "The U.S. market is not quite as strong as the indices would suggest," Faber said, citing the nation’s "low-quality growth."

Other respected financial gurus also warn that the U.S. stock market just keep setting record highs seemingly on a daily basis.

A “minor correction” looms for the soaring U.S. stock market, but Trump will help the “ordinary investor” if the new president stops "flailing" and starts delivering on his campaign vows to make America great again, Peter Morici, a syndicated columnist and economist at the University of Maryland, tells Newsmax TV.

“I can't imagine it's going to keep going up like this and then not have a little minor correction at least,” Morici said of the lofty market's bull run since Trump's election victory. "Or even a large one. Not permanent."

Stock benchmarks have advanced on speculation Trump’s pledges to cut taxes and increase fiscal spending will boost companies that benefit from economic growth.

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“There's a lot of optimism about the election of Donald Trump because after all, Barack Obama has been the most anti-business president we have had. I mean he has a visceral dislike for guys in Cadillacs, or worse, guys in Lexuses,” Morici recently told Bill Tucker on "The Steve Malzberg Show."

“Getting rid of him (Obama) is good for stocks, but now Donald's got to deliver and we do see him flailing about a bit,” said Morici, who is also a Newsmax Finance Insider. 

(Newsmax wire services contributed to this report).


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Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” says the savvy investors will know the right moves to make amid the current rally as the stock market continues to bask in Donald Trump’s election victory.
marc faber, trump, contrarian, invest
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2016-53-30
Wednesday, 30 November 2016 01:53 PM
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