Apple Inc. (NASDAQ:AAPL) has seen interest from a fair share of bears lately. The “optimist” investor from Switzerland, Marc Faber, is well known for his predictions about this particular stock, which somehow always tend to become true. For example, on October 4, he told in an entrance on CNBC television, that many stocks, including Apple have peaked out, and what was interesting was the fact that since then, Apple has lost 32.7%.
Faber, who is also the publisher of Gloom, Boom and Doom Report, has a contrarian reputation, and in his many appearances on CNBC and Bloomberg outlets, he came up with some interesting ideas about global markets, central banks and stocks.
His other comment about Apple Inc. (NASDAQ:AAPL), mentioned on CNBC on January 10, was also prophetic. The investor, known also by the nickname “Doctor Doom” said that he would not buy Apple, because of its still potential downside risk. Since then, Apple has lost 12.6%.
This time, Marc Faber was asked by Bloomberg Surveillance with Tom Keene and Alix Steel about gold and why wasn’t it holding up. Dr. Doom said that he was relatively positive about U.S. stocks since March 2009 and hasn’t been shorting any stocks since then. But, despite the fact that the U.S. dollar is strong and emerging markets are performing badly in comparison to the U.S, the U.S market will not go up a lot, and there is a considerable downside risk. He also mentioned the fact that the recession in Europe will have an impact on the corporate profit of U.S corporations.
He also gave an interesting point when asked about why gold has not held up as a safe haven. He wasn’t talking Apple Inc. (NASDAQ:AAPL), but investors should still pay attention.
“When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system.
Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession.
More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S. So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.”
At the end, Faber gave his opinion on whether the raiding of bank accounts in Cyprus set a precedent for Europe. In his opinion, “It is nothing unusual. Philosophically I believe that we shouldn’t have deposit insurances, blanketed insurances by governments because it would force savers to be very careful.”
Let’s stay focused on the market and Apple Inc. (NASDAQ:AAPL) in particular, and see whether Dr. Doom is right this time.