Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Dr Doom: 'global recession in 2013 is a 100% certainty'

1 Comment
Dr Doom: 'global recession in 2013 is a 100% certainty'

Marc Faber has warned it is a ‘100% certainty’ the global economy will slides into recession in 2013.

The economist, nicknamed ‘Dr. Doom’, is in defensive mode, saying barring a few exceptions, risk assets have made ‘outsized gains’ since 2009 and now the priority is to lock in those returns.

Dr Doom's gloomy predictions have often been proved right, as shown by a recent Citywire analysis of his calls and those of his rival, Nouriel Roubini.

Speaking to CNBC, Faber (pictured) said: ‘I think we could have a global recession in 2013. I rate it as a 100% certainty.’

He pointed to slowing growth rates in China and the US, adding that real GDP growth in America would be negative if the rise in the cost of living was calculated ‘properly’. He expects the slowing German economic to join the rest of the Eurozone in recession and cautioned that emerging markets will be hit hard on the back of weakened demand, particularly from China.

‘What disturbs me most about asset markets is that we have had outsized gains since early 2009 (there are exceptions such as Vietnamese, Chinese, Japanese and European equities, and also US housing,’ he said. ‘In my opinion, investors' expectations about future returns on their assets are far too optimistic. In a world that currently hardly grows investors will need to reduce their future return expectations.

‘I believe 2013 will not be a favourable year for holders of assets. My priority has now shifted to the preservation of the outsized gains I have achieved over the last three years.’

Faber warned in April that the S&P 500 faces a correction.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter