Sunday, April 1, 2012

Marc Faber April 2012 Market Commentary

Marc Faber has just released his April 2012 market commentary on the gloomboomdoom.com website.

This month report is entitled "He had been one of those People who was greatly improved by Death".

This month, there are 2 MMC attachments:
  • Stocks, Bonds, and the Efficacy of Global Dividends by Jim O´Shaughness, chairman, and CEO of O'Shaughnessy Asset Management,
  • Value Subjectivism and Monetary Instability by Ron Herafounder of Hera Research, LLC.
The first report by Jim O'Shaughness is available as a free download at http://osam.com/research.aspx (January 2012 research paper) after registration. In this report, Jim O'Shaugness looks at bonds and stocks investing as well as global dividend investing. He compares different strategies over a long(-ish) period of time. Here's the conclusion of this study:
Bonds seem poised for low single-digit returns and, potentially, negative real returns. A conservative analysis of historical equity returns leads us to believe that equities could see mid to high single-digit nominal equity returns, though still below average. Dividend investing has historically been a reliable strategy producing superior excess returns in both U.S. and foreign markets. Expanding the universe of potential investments to include a global framework provides a greater opportunity set of high-quality, cash-rich multi-national companies with strong dividend yields.

Dividends are historically a significant component of total equity returns during low-return environments. When applied to pre- and post-tax income investors, a high-yield dividend strategy not only offers protection of purchasing power but also growth of income on a real basis.
The second attachment "Value Subjectivism and Monetary Instability" is an article published on Goldseek.com where Ron Hera pinpoint 15 fundamental issues with fiat currencies.

If you want to access the full Monthly Market Commentary (MMC) by Marc Faber, it is available for 300 USD per year. Sometimes, Summaries or highlights are available on the web, I'll repost it here if one become available.

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