The financial industry rarely criticizes loose monetary policy. This is because the initial flow of new money enters the financial system, inflating asset prices and directly increasing Wall Street's revenue through commissions and management fees.
When asset prices, particularly in US equities, are at historic highs, Marc Faber suggests a strategic pivot. Instead of seeking maximum returns, the most prudent objective becomes capital preservation and figuring out how to "lose the least money" in an inevitable correction.
Marc Faber asserts a historical constant: wealth redistribution initiatives, such as land reforms, have consistently failed long-term. The redistributed assets, through various mechanisms, quickly find their way back into the hands of a wealthy elite, suggesting simple transfers are ineffective.
Increasing the money supply doesn't lift all prices uniformly. It flows into specific sectors like finance or real estate first, creating asset bubbles and exacerbating wealth inequality, as those closest to the "money spigot" benefit before wages catch up.
A market regime shift has occurred. While money printing used to primarily boost stocks and bonds, Marc Faber argues it now causes "sound currencies" like gold and silver to rise even faster, signaling a growing loss of confidence in the purchasing power of fiat currencies.
Economist Marc Faber argues that countries like Thailand, sometimes labeled "failed states," can paradoxically offer higher degrees of personal freedom and safety. The lack of rigid state control can create a more peaceful and less restrictive environment than many Western nations.
Contrary to the dominant narrative focused on US tech giants, data shows European banks and a global deep value approach have outperformed the 'Mag 7' over the last one, three, and five years. This highlights the importance of looking beyond popular headlines for actual investment performance.