Today we’re writing live from Port Phillip Publishing’s exclusive Paradox of Prosperity conference at the Grand Hyatt in Melbourne.
This conference brings many experts from Port Phillip Publishing and around the world to discuss the dangers and opportunities facing markets.
There are many topics that’ll be covered over the next two days. Today we have a number of experts discussing situations and outcomes that may happen in their respective areas.
Today’s presenters include, Port Phillip Publishing’s Vern Gowdie, editor of The Gowdie Letter and Gowdie Family Wealth and author of The End of Australia.
Co-founder of J Capital Research, Tim Murray presented on the impacts of a declining China.
Later on in the day, John Pain, author of the The Weekly Pain Report, will be discussing the prospect of a global inflation shock.
Greg Canavan, Head of Research at Port Phillip Publishing and editor of Money Morning, Crisis & Opportunity and Greg Canavan’s IPO Investor, will present how mind games could make or break you in the markets.
And Gerard Minack, Founder of Minack Advisors, will discuss the current cycle and why secular markets will remain stationary.
But the presenter we want to write to you about today is Dr Marc Faber.
‘Doctor Doom’ Marc Faber is down in Melbourne to discuss where the world is heading. Is a stock market crash on the cards? Or is it something else?
Before we find out what Dr Faber had to say, a little background.
Born and educated in Switzerland, by the age of 24 Dr Faber had achieved a PhD in Economics. He was magna cum laude of his cohort.
Dr Faber has worked in Zurich, New York and Hong Kong and the White Weld & Company Limited, between 1970 and 1978.
From 1978 to February 1990, Dr Faber was the Managing Director of Drexel Burnham Lambert (HK) Ltd.
And in June 1990, Dr Faber decided to work for himself, and set up his own company Marc Faber Limited. His company is an investment adviser, fund manager and broker/dealer all rolled into one.
Dr Faber has also authored many books, including Tomorrow’s Gold: Asia’s Age of Discovery (2002). This book was on Amazon’s bestseller list for a number of weeks, and has been translated into many languages.
He is also the publisher and author of the monthly newsletter The Gloom Boom & Doom Report.
In what some may perceive as one of the highest honours, in 1998, Dr Faber even had a book written about him. Riding the Millennial Storm was written by Nury Vittachi.
Dr Faber is famous for his provocative views. He believes were heading into a period of depression.
And while most investment experts are either bullish, bearish, or both, Dr Faber directs himself through the international markets and comes up with his own ideas.
As the UK Sunday Times put it:
‘One does not go to see Marc Faber, Hong Kong’s iconoclastic share pundit, in the expectation of good news. But after listening to him, no investor could claim he had not been warned. For Faber, a blunt-spoken Swiss, says the things nobody wants to hear…’
Quo Vadis Mundus?
‘Where is the World Going?’ was the theme of Dr Faber’s presentation today. And around the world we went. Dr Faber had so much to say, we can’t fit everything in. But Dr Faber is quite well versed in the Chinese economy.
It was quite interesting to note that China is a leader in many sectors of the world.
Dr Faber noted the ignorance of the US when they attached tariffs to Chinese imports. They’re built on Trump’s accusation that China is flooding the US with cheap steel. But the US’s largest steel importer is Canada. China represents a mere 4% of steel imported to China. And from China’s point of view, exports to the US are even more irrelevant. They send far more steel to the likes of Korea, Vietnam and Thailand. The US takes approximately 2% of Chinese steel exports!
Because the US is no longer the largest market in the world, many in China won’t and didn’t feel the impact of the tariffs placed on China by the US government. As Dr Faber said, they couldn’t care less.
And while the US have accused China of stealing their ideas, Dr Faber explained that this is more American arrogance. You cannot discount the innovation of China nowadays. To prove his point, he explained that China has now overtaken ‘Japan in Asia for high tech exports’.
He also cited the US’s need to harass both China and Russia as the catalyst for unifying interests between the two nations. Something that decades of Chinese and Russian governments have not been able to achieve, but which the US has driven them to in just a few years!
This is just the beginning of the topics Dr Faber covered, and their implications for Australian investors. If you would like to learn more about what Dr Faber and our other experts have to say about the current state of the markets, it’s not too late to get a ‘digital seat’ at the Paradox of Prosperity conference. Our camera crews are recording each and every speech, question and idea from the conference. Find out how you can secure your copy here.
Editor, Markets & Money