To: Johnny Canuck who wrote (59931) | 9/10/2024 3:27:49 PM | From: Johnny Canuck | | | Skip to content
AMD, Dell, Oracle listed as top tech picks by UBS into year-end
Sep. 10, 2024 10:40 AM ET Advanced Micro Devices, Inc. (AMD) Stock, DELL Stock, ORCL Stock NVDA, CYBR, BRZEBy: Chris Ciaccia, SA News Editor 4 Comments
Justin Sullivan/Getty Images News
- AMD (NASDAQ: AMD), Dell Technologies (NYSE: DELL) and Oracle (NYSE: ORCL) were listed as the top technology stocks to own into the end of the year by investment firm UBS.
- AMD is UBS's top pick in the semiconductors and semiconductor capital equipment space, as the investment bank believes in AMD's GPU roadmap. Its GPU offerings are seen as "competitive" with Nvidia's ( NVDA), due to superior memory bandwidth and a push towards full-system solutions, UBS said. "We see data center becoming [roughly] 70% of [operating profit] next year and AMD is seeing strong momentum on both GPU and CPU aspects."
- Dell is the firm's top pick in Hardware and Electronics Manufacturing Services on the belief that Dell's emerging strength in AI-focused servers and a refresh cycle for PCs are being supported by better pricing. Dell recently reported second-quarter results that topped estimates.
- Oracle is the firm's top pick in large-cap software, as it believes it can sustain 50% or more cloud infrastructure growth due to the increased revenue from artificial intelligence, the ramp of key customers (such as Uber and OpenAI) and database migrations to Azure.
- Braze ( BRZE) and CyberArk Software ( CYBR) were also positively mentioned by UBS in the software space.
More on AMD, Dell and Oracle
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LenceFlatu Today, 12:14 PM
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What isn't a *"top tech call"* for US equities right now? Long $ f Ford Motor Company strong buy
N
Natturner1966 Today, 12:06 PM
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I like the call on AMD DELL.
w
whipsawed Today, 12:00 PM
Comments (272)
AMD only needs one word response: Blackwell !! Wall St is tryin to scare the retail crowd into selling their NVIDIA shares.
s
state_of_affairs Today, 2:50 PM
Comments (2.16K)
@whipsawed NVidia is not going to stop selling the H100 and H200 when "Blackwell" is released. The H100 and H200 will be NVidia's bread and butter for the next couple of quarters, and it is against those platforms that AMD will position the MI300X and MI325X.
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To: Johnny Canuck who wrote (59932) | 9/10/2024 6:44:40 PM | From: Johnny Canuck | | | Skip Navigation


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Energy Oracle is designing a data center that would be powered by three small nuclear reactors Published Tue, Sep 10 20243:54 PM EDTUpdated 3 Hours Ago
 Spencer Kimball @spencekimball
WATCH LIVE
Key Points
- Oracle is designing a data center that would require more than a gigawatt of power, chairman and co-founder Larry Ellison said.
- The data center would be powered by three small modular nuclear reactors, Ellison told investors this week.
- Small modular reactors are next-generation designs that promise to speed the deployment of reliable, carbon-free power — but they face challenges reaching the commercial stage.
In this article

A view of Oracle’s headquarters in Redwood Shores, California, on Sept. 11, 2023. Justin Sullivan | Getty Images
Oracle chairman and co-founder Larry Ellison had a “bizarre” announcement to make this week.
The electricity demand from artificial intelligence is becoming so “crazy” that Oracle is looking to secure power from next-generation nuclear technology, Ellison told investors on the company’s earnings call Monday.
“Let me say something that’s going to sound really bizarre,” Ellison told analysts. “Well, you’d probably say, well, he says bizarre things all the time, so why is he announcing this one. It must be really bizarre.”
Oracle is designing a data center that will require more than a gigawatt of electricity, the company’s chairman said. The data center would be powered by three small nuclear reactors, he added.
Read more
Small nuclear reactors could power the future — the challenge is building the first one in the U.S.
AI demand could strain electrical grid in coming decade
“The location and the power place we’ve located, they’ve already got building permits for three nuclear reactors,” Ellison said. “These are the small modular nuclear reactors to power the data center. This is how crazy it’s getting. This is what’s going on.”
Ellison did not disclose the location of the data center or the future reactors. CNBC reached out to Oracle for comment.
Small modular nuclear reactors are new designs that promise to speed the deployment of reliable, carbon-free energy as power demand rises from data centers, manufacturing and the broader electrification of the economy.
Generally, these reactors are 300 megawatts or less, about a third the size of the typical reactor in the current U.S. fleet. They would be prefabricated in several pieces and then assembled on the site, reducing the capital costs that stymie larger plants.
Right now, small modular reactors are a technology of the future, with executives in the nuclear industry generally agreeing that they won’t be commercialized in the U.S. until the 2030s.
There are currently three operational small modular reactors in the world, according to the Nuclear Energy Agency. Two are in China and Russia, the central geopolitical adversaries of the U.S. A test reactor is also operational in Japan.
Don’t miss these energy insights from CNBC PRO:
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To: Johnny Canuck who wrote (59933) | 9/10/2024 10:42:30 PM | From: Johnny Canuck | | | Index Update
SP500 building on the counter rally that started yesterday. Core CPI up next and then the rate cut next week so it is a wait and see for traders.

DOW not so constructive as the short term downtrend continues down.

DOW transport also back the short term downtrend.

DOW utilities still building in interest rate increases.

TTLT suggesting the interest rate might be higher than expected.

USD setting a lower high on this bounce. This is not good. Expect a retest of the current low near parity.

Sell signal setup on the COMPQ negated. It looks like it has set a higher low. Traders will be looking to see if it can build on this base.

Semiconductors also setting a higher low. It really need to clear the 250 zone before traders get more interested in the sector.

Russell 2000 still in a short term downtrend and it is has not created a higher low, so it is pretty vulnerable.

Financials showing some short term weakness as a short term sell signal is setting up.

Energy sector breaking the lower range of the intermediate channel from the last few months. A recession being priced in?????

Gold still waiting for something.

Consumer discretionary is waiting after a short term rally. Traders are not sure about consumer demand.

It is too early to tell, but for the first time we are seeing some hesitation in finance and energy, which may be suggesting that traders are starting to price in a recession. The recession may only be mild and short but it still there. |
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To: Johnny Canuck who wrote (59934) | 9/10/2024 11:05:55 PM | From: Johnny Canuck | | | Put TXN and SMH on your watch list.
TXN is the strongest of the semiconductors and while not specifically tied to any sector, electronics need the analog products and chip for pretty much everything. Their guidance was for an end of the inventory issue. They may be the company seeing the recovery first. Keep in mind they are one data point but if they rise to a new high, it is an indication that traders are going to go with the strongest first and then shift in to the over semiconductor companies.
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To: Johnny Canuck who wrote (59935) | 9/10/2024 11:08:50 PM | From: Johnny Canuck | | | TSLA is going to go counter to the overall market trend till its announcement about robot taxis in October. I expect it to be a sell the news event. China has a incentive to make it work, other countries will have a harder issues as it only really works well if all cars are robot cars. Liability remains the main issue in most westernized countries.
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To: Johnny Canuck who wrote (59936) | 9/11/2024 12:33:05 AM | From: Johnny Canuck | | | Nvidia is expected to grow quickly through 2026. These companies may grow faster. Published: Sept. 10, 2024 at 1:19 p.m. ET By Emily Bary Philip van Doorn An overwhelming number of analysts still rate Nvidia a buy, and they expect a significant gain for the stock over the next year
Nvidia Corp. dominates coverage of the semiconductor manufacturing space, and rightly so. But many other chip makers are expected to put up impressive numbers over the next two years. Nvidia NVDA has commanded the market for graphics processing units being deployed by data centers to support their corporate clients’ development of artificial-intelligence technology. The company has been showing dramatic increases in revenue for the past five reported fiscal quarters. Nvidia’s market capitalization has increased to $2.61 trillion from $358 billion two years ago. The company’s stock now makes up 5.7% of the SPDR S&P 500 ETF Trust SPY, the oldest and largest exchange-traded fund tracking the S&P 500 SPX. Only Apple Inc. AAPL and Microsoft Corp. MSFT are weighted more heavily in the index. Nvidia more than doubled sales last calendar year, and it’s expected to do the same this year. The company likely won’t be able to keep up that rapid rate of growth going forward, but it’s still expected to be a relatively fast grower within its sector. Analysts on average model a nearly 33% compound annual growth rate for Nvidia’s revenue through calendar 2026. That’s notable as some investors have started to get worried about Nvidia’s growth potential for calendar 2026, especially in light of a less dramatic revenue beat in the latest quarter and swirling questions about the return on investment for AI spending. If big cloud customers and others don’t see enough AI revenue to justify their investments, they may be less inclined to pour more money into AI hardware. Screening semiconductor stocks When a company essentially creates a large and lucrative new market, the competition can be expected to up its game and take a share eventually. Or maybe in the case of Nvidia, there will be a breather for GPU implementation as companies investing so much in new hardware feel pressure to derive profits from AI-related related products and services. So this is a good time to look ahead. We can do this by calculating expected compound growth rates for semiconductor-industry players’ revenue over the next two years. For this screen we started with the 30 components of the iShares Semiconductor ETF SOXX, which tracks the PHLX Semiconductor Index SOX. Then we added the 31 additional companies in the S&P 1500 Composite Index XX:SP1500 that are in the semiconductor industry, as determined by FactSet, or in the Semiconductors and Semiconductor Equipment Global Industry Classification Standard group, as per companies’ filings with the Securities and Exchange Commission. The S&P Composite 1500 Index is made up of the S&P 500 SPX, the S&P MidCap 400 Index MID and the S&P Small Cap 600 Index SML. Then we looked at calendar-year revenue estimates through 2026 among analysts polled by FactSet to see which companies are expected to show the highest two-year sales CAGR. We used estimates for calendar years, as adjusted by FactSet, because many companies confuse investors with fiscal years that don’t match the calendar. For example, on Aug. 28, Nvidia announced results for the second quarter of its fiscal 2025. Among the 61 companies in our initial group of manufacturers and designers of semiconductors and related equipment, consensus sales estimates were available through calendar 2026 for 53 companies. Among the 53 remaining companies, there are the 17 for which sales are expected to increase at an annualized pace of more than 20% from calendar 2024 through calendar 2026. Calendar-year sales estimates are in millions. Company | Ticker | Expected two-year sales CAGR through 2026 | Est. 2024 sales | Est. 2025 sales | Est. 2026 sales | SolarEdge Technologies Inc. | SEDG | 45.1% | $1,089 | $1,905 | $2,294 | Wolfspeed Inc. | WOLF | 39.8% | $868 | $1,150 | $1,696 | Silicon Laboratories Inc. | SLAB | 33.2% | $603 | $903 | $1,070 | Nvidia Corp. | NVDA | 32.9% | $120,095 | $174,920 | $212,166 | Enphase Energy Inc. | ENPH | 30.1% | $1,400 | $2,026 | $2,369 | Cohu Inc. | COHU | 28.4% | $406 | $531 | $670 | SiTime Corp. | SITM | 26.5% | $191 | $245 | $305 | Marvell Technology Inc. | MRVL | 26.5% | $5,531 | $7,289 | $8,850 | MaxLinear Inc. | MXL | 24.8% | $357 | $446 | $556 | Micron Technology Inc. | MU | 24.4% | $29,600 | $40,738 | $45,781 | Advanced Micro Devices Inc. | AMD | 24.1% | $25,599 | $32,819 | $39,448 | First Solar Inc. | FSLR | 22.4% | $4,489 | $5,670 | $6,723 | Teradyne Inc. | TER | 22.4% | $2,786 | $3,424 | $4,171 | ASML Holding NV ADR | ASML | 20.8% | $30,358 | $40,016 | $44,314 | Onto Innovation Inc. | ONTO | 20.7% | $980 | $1,157 | $1,429 | Universal Display Corp. | OLED | 20.3% | $663 | $757 | $960 | Taiwan Semiconductor Manufacturing Co. ADR | TSM | 20.1% | $86,576 | $106,839 | $124,840 | Source: FactSet | To put these expected revenue growth rates into perspective, the two-year estimated sales CAGR through 2026 for the PHLX Semiconductor Index is 17.1%. This index has a modified market-cap weighting with an 8% maximum when the underlying index is rebalanced quarterly. Shares of SolarEdge Technologies Inc. SEDG, which leads the list, have had a brutal year, falling more than 80% over the course of 2024 to date. The company makes technology for solar-power generation, and it’s been hurt by a weak solar market and general sector pressure. Despite analysts’ projections for fast sales growth going forward, the company faces financial challenges elsewhere. In launching coverage of SolarEdge shares with a hold rating earlier this month, Jefferies analyst Julien Dumoulin-Smith said that ”the path forward is opaque with continued negative [free cash flow].” SolarEdge has also become a popular short play, with short interest amounting to more than 30% of the float, according to FactSet data. Other solar plays, including Enphase Energy Inc. ENPH, place among the top projected sales growers as well. “We recognize the re-acceleration in growth ahead but ultimately see the recovery and upside from domestic content priced-in with execution risk ahead,” Dumoulin-Smith wrote in taking up coverage of Enphase shares, also with a hold rating. Wolfspeed Inc. WOLF ranks second on the list for expected sales CAGR through 2026. The company specializes in making electronic components using silicon carbide for electric vehicles. It also provides components for charging and power storage equipment. The company isn’t expected to show a quarterly profit for at least two more years, according to FactSet’s consensus estimates. Most analysts have neutral ratings for Wolfspeed’s stock. In a note to clients on Aug. 22, following the company’s most recent quarterly report, Oppenheimer analyst Colin Rusch wrote that some of investors’ concerns about the company’s financial health were being addressed by a cut in planned capital expenditures and the expectations of federal funding through the CHIPS Act. Next up is Silicon Laboratories Inc. SLAB, an analog and mixed-signal chip company that is expected to post its second calendar year in a row of declining sales in 2024 before rebounding big through 2026. That hits on a general trend in the semiconductor sector. If you focus just on the AI craze, you might think the chip sector is universally hot, but many areas of the market including automotive and industrial semiconductors have faced recent pressure. That sets companies up for big potential revenue recoveries if their end markets turn around. The issue of Nvidia’s forecast moving through calendar 2026 is especially topical as investors think about AI returns. Mizuho desk-based analyst Jordan Klein wrote ahead of Nvidia’s late-August earnings report that the top question on the buy side concerns the growth outlook for cloud capital spending in calendar 2026 versus calendar 2025. “Nobody really knows,” he wrote. “Investors feel good about this year and 2025 for sure, but in 6-8 months, [Nvidia’s stock] will trade off [calendar-year 2026 estimates] and those will rely heavily on biggest GPU and AI compute buyers, or the cloud hyperscalers (vs sovereigns, enterprise, edge devices).” Meanwhile, rival Advanced Micro Devices Inc. AMD sits just outside the top 10 in terms of expected CAGR through 2026. The company seeks to claw into Nvidia’s dominant market share in AI GPUs, and it also could benefit if some of its non-AI businesses recover. For instance, AMD’s gaming business saw a 61% revenue decline in the latest quarter and is expected to post sharp declines in the next two as well, before getting back into positive growth territory. On AI, there’s plenty of market opportunity for AMD in the near term, but its rival certainly isn’t sitting still. Nvidia is targeting a one-year product cadence for new offerings, which should keep AMD on its heels. Leaving the group in the same order, here is a summary of opinion for these stocks among analysts working for brokerage firms polled by FactSet: Company | Ticker | Share buy ratings | Share neutral ratings | Share sell ratings | Sept. 9 price | Consensus price target | Implied 12-month upside potential | SolarEdge Technologies Inc. | SEDG | 17% | 74% | 9% | $17.94 | $30.88 | 42% | Wolfspeed Inc. | WOLF | 32% | 57% | 11% | $7.59 | $18.71 | 59% | Silicon Laboratories Inc. | SLAB | 42% | 50% | 8% | $105.54 | $139.75 | 24% | Nvidia Corp. | NVDA | 94% | 6% | 0% | $106.47 | $149.12 | 29% | Enphase Energy Inc. | ENPH | 55% | 38% | 7% | $103.04 | $127.57 | 19% | Cohu Inc. | COHU | 57% | 29% | 14% | $23.35 | $32.71 | 29% | SiTime Corp. | SITM | 86% | 0% | 14% | $133.53 | $138.33 | 3% | Marvell Technology Inc. | MRVL | 94% | 6% | 0% | $68.93 | $93.25 | 26% | MaxLinear Inc. | MXL | 45% | 55% | 0% | $13.33 | $21.33 | 38% | Micron Technology Inc. | MU | 93% | 5% | 2% | $86.27 | $171.13 | 50% | Advanced Micro Devices Inc. | AMD | 81% | 19% | 0% | $138.15 | $186.67 | 26% | First Solar Inc. | FSLR | 78% | 22% | 0% | $205.36 | $291.94 | 30% | Teradyne Inc. | TER | 53% | 42% | 5% | $124.20 | $145.47 | 15% | ASML Holding NV ADR | ASML | 77% | 20% | 3% | $749.82 | $1,124.12 | 33% | Onto Innovation Inc. | ONTO | 100% | 0% | 0% | $180.63 | $261.21 | 31% | Universal Display Corp. | OLED | 75% | 25% | 0% | $190.24 | $228.89 | 17% | Taiwan Semiconductor Manufacturing Co. ADR | TSM | 95% | 5% | 0% | $162.78 | $209.84 | 22% | Source: FactSet | Click on the tickers for more about each company, including news coverage, stock charts, price ratios and financials. |
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To: Johnny Canuck who wrote (59937) | 9/11/2024 12:45:49 AM | From: Johnny Canuck | | | - Home
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Meta is one of the cheapest big tech stocks, and that earns it a new ‘buy’ call Last Updated: Sept. 10, 2024 at 10:41 a.m. ET First Published: Sept. 10, 2024 at 9:03 a.m. ET By Ciara Linnane Meta is poised to be an open-source leader for the next two major tech platforms, say analysts
Meta Platforms Inc. has earned a spot as a top pick in the mega-cap space thanks to leadership in two major technology platforms and an attractive valuation, D.A. Davidson said Tuesday, as it initiated coverage of the stock with a buy rating. Analysts Gil Luria and Alex Platt assigned the stock a $600 price target, about 19% above its current price. The Facebook parent META is positioned to be Open Source leader for AI Foundation Compute and Spatial Compute, the analysts wrote. AI Foundation Compute refers to the infrastructure, models and frameworks needed for large-scale AI applications, while Spatial Compute integrates AR, VR and immersive environments. “Unlike the nimble innovations of past tech cycles that favored startups, these platforms require enormous computational power, data, and long-term vision—factors that favor mega-cap firms with the resources and strategic foresight to commit to such undertakings,” they wrote. “In this context, the distinction between open platforms and closed-garden approaches will become a key competitive dynamic.” Alphabet Inc. GOOGL , Apple Inc. AAPL , Amazon.com Inc. AMZN and Microsoft Corp. MSFT are all taking a closed-garden approach to the platforms, leaving Meta with the pole position on the open side. Meta has chosen to open source elements of AI compute, the analysts wrote, citing as examples Llama, PyTorch and FAISS, or Facebook AI Similarity Search (Faiss), a library that allows a user to quickly search for multimedia documents that are similar to each other. PyTorch is a framework for building deep learning models, while Llama is a family of large language models released by Meta AI starting in 2023. “It helps that Meta’s core product actually benefits from AI,” the analysts wrote. While Google still needs to manage the shift to AI-enhanced search, Meta is already reporting how advancements in AI are driving improvements in ad delivery and yields, said the analysts. “This makes it easier to justify not only the investments in AI compute, but also open sourcing them to capture the benefits from the developer community,” they wrote.
In spatial computing, D.A. Davidson is expecting the tens of billions that Meta has poured into Reality Labs, the renamed Oculus VR, to become the moat that positions the company to be open source winner alongside Apple’s closed garden. Reality Labs is the Meta unit that produces virtual reality and augmented reality hardware and software. “While Apple’s companion for the PC era was Microsoft and Apple’s companion for the mobile era was Google Android, we believe neither Microsoft nor Alphabet are as focused enough on this next large platform,” the analysts wrote. Meta is also benefiting from the fact that it’s very much managed in “founder mode,” the analysts said, referring to the recent Silicon Valley discussion that compares companies run by their founders with those run by professional managers. Meta exemplifies those benefits more than any other mega-cap, they wrote. Co-Founder and Chief Executive Mark Zuckerberg “has navigated numerous existential challenges successfully,” and appears to be focused on the next two large opportunities, said the analysts. They noted Zuckerberg’s “deliberate transformation as a leader” to adapt to Meta’s goals. The $600 price target is based on 24 times 2025 EPS. The current valuation at 21 times makes Meta aside from Google, the least expensive mega-cap, even before factoring in the option to sever Reality Labs losses, which would take the multiple down to 16 times. “With this in mind, as we move towards the large future platforms, we will be monitoring short term challenges such as tougher comps, reliance on Chinese shlock-hawkers and the upcoming election cycle,” said the analysts. Meta’s stock was down 0.3% Tuesday, but has gained 42% in the year to date, while the S&P 500 SPX has gained 14.7%. Read now: Beware of Big Tech grabbing control of its own AI regulation |
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To: Johnny Canuck who wrote (59938) | 9/11/2024 12:46:29 AM | From: Johnny Canuck | | | Michael Sincere's Long-Term TraderOpinion: ‘Dr. Doom’ warns about ‘Magnificent Seven’ stocks: ‘The whole world has been gambling.’Veteran trader Marc Faber explains how to protect your money from market uncertainty
By
Michael Sincere
Published: Sept. 10, 2024 at 7:50 a.m. ET
Photo: Getty Images/iStockphoto
Referenced Symbols
In six months, where will the market be? Do you know? I don’t know. That’s why most individual stock investors and traders will lose money.
“Dr. Doom” will see you now.
Investment manager Marc Faber, a.k.a. “Dr. Doom,” earned that moniker after advising his clients to get out of the stock market before the October 1987 crash.
Faber, publisher of the investment newsletter “The Gloom, Boom, & Doom Report,” doesn’t foresee an imminent market crash now, but is wary of the U.S. stock market and continues to be concerned about stock valuations. Says Faber: “The market has been driven higher by a handful of stocks,” that is, “any stock that has anything to do with artificial intelligence.” These stocks, Faber notes, are “grossly overvalued.”
After 50 years of investing and trading experience, Faber has learned many important lessons. No. 1: Respect the power and unpredictability of the stock market, if only to avoid being caught by surprise when the market makes extreme moves.
In this recent interview, which has been edited for length and clarity, Faber talked about his view of both the stock- and housing markets, strategies investors should use to protect a portfolio, how interest rates could reach unsustainable levels, and the disastrous effects of still-high inflation.
Photo: Marc Faber
MarketWatch: What’s your view of the U.S. stock market right now?
Faber: I am relatively negative about the U.S. market. Most stocks haven’t done well. However, the market has been driven higher by a handful of stocks — semiconductors and anything to do with high-tech, especially with artificial intelligence. In my view, these stocks are grossly overvalued and have substantial downside. When there is a change in leadership, these stocks will go down as the market moves away from these favorite stocks to more value-oriented stocks.
MarketWatch: What are the red flags you’re seeing in stock prices?
Faber: First, if you look at valuations by historical standards, they’re very high, especially the favorites I just mentioned. Second, the profit margins of American companies will come down because of inflationary pressures, and also because of weak demand. The problem in America with many sectors is affordability, especially in the housing industry. Housing affordability in the U.S. is at its lowest level ever. That reduces the demand, which reduces earnings potential.
‘Given the uncertainty we have in the world, I would own some precious metals.’
— Marc Faber
MarketWatch: What can the U.S. government do to boost economic demand?
Faber: The question is how can you operate on the economy without putting the patient into the hospital? It will be very unpleasant for two, three or four years. But what must be done — and will be done eventually — is to bring fiscal deficits down.
There are three choices. First, politicians could increase taxes. However, if politicians go to American voters and tell them they must increase taxes, they will not get elected. Second, politicians could cut government spending. But no one will elect them if they cut police, fire, and army veteran pensions, or cut Social Security contributions for those over 65. The third option, which is what every government has embarked upon, is inflation.
The government prints money and the inflation rate goes up. But inflation rises because of deficits and money printing. In other words, it’s a tax. The bad aspect of inflation is that it touches different sectors of society differently. For example, I have cash, stocks, bonds, commodities and no debt. I love inflation because the value of my assets goes up.
But as a social observer, historian and economist, I know it’s a disastrous policy with a disastrous outcome. The poor people get hurt the most during inflationary times because they have no assets. That’s why if you look at every inflationary period in history, wealth inequality increased dramatically.
MarketWatch: How can investors protect their money in this environment?
Faber: People should reverse their thinking and start to contemplate the view that instead of everything going up, think what would happen if everything that you own goes down in value. I want to stress that it’s not a disaster if everything comes down and you have no debts. The problem arises for people who have a lot of debts, because debts don’t come down.
If I were an investor, given the uncertainty we have in the world, I would own some precious metals. I’m not saying the precious-metals market will go up tomorrow. But when I look at the debt levels in America — the unfunded liabilities of the U.S. government and those of pension funds, in my view — the only way out is to print money. There is no other option. That’s what governments have always done.
MarketWatch: Are you shorting the U.S. market?
Faber: I used to be one of the larger short sellers. But during the technology boom in 1999 and 2000, I lost a lot of money. I decided that shorting stocks in a money-printing environment is a dangerous proposition. Based on fundamentals, a stock should go down, but because of monetary injection, the stock goes up.
MarketWatch: What is one of the most important lessons you’ve learned about the stock market?
Faber: I have a very good lesson that everyone should remember: The market is unpredictable. On any trading day, we don’t know how the market will close. And in six months, where will the market be? Do you know? I don’t know. That’s why most individual stock investors and traders will lose money.
MarketWatch: Are you seeing different conditions in stock markets outside the U.S.?
Faber: Actually, the whole world has been gambling on the “Magnificent Seven” stocks — especially Nvidia
NVDA
1.53%
.
Michael Sincere ( michaelsincere.com) is the author of “Understanding Options,” “Understanding Stocks,” and the forthcoming “Help Your Child Build Wealth” (Wiley, 2024). |
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