Bingo. The man has it right. Faber in years past has been interesting to listen to (although I never back any pundits opinion) but he has mastered what pundits all must do eventually to make real money. Give headline writers the sensationalist headline and broadcasters the over-the-top sound bite. The formula brings in subscribers and that means income.
I don't really have a good answer on that one, and have never personally tried buying distant month contracts. I stick with (near-month) futures, ETF's or leveraged ETF's (like DGP), despite the drawbacks.
Up untill a year or two back his GloomBoomDoom report was free and after charging 200$ for it for a years subscribtion (which is quite moderate really) he is known for using a substantial part of those proceeds to support the Child's Dream charity, a tax-exempt Charity Organization that supports the poorest of Thai children in their education. http://www.gloomboomdoom.com/public/pSTD.cfm?pageSPS_ID=5300 He is a saint!
It's always best to trade as close to Front as possible. You get the best price discovery. Rolling is very cheap compared to the price discovery you lose by going farther out. My firm has permanent positions and we always trade front and roll as market rolls.
It's the nature of their 'prediction' business, they have to make even more breathtaking predictions to keep their subscriber/viewers attention and not be eclipsed by a competitors outrageous predictions.
Makes sense. The ETF's seem to frequently under perform the market and it has been written that because it is easy for experienced traders to know when they will roll their positions they get killed on the roll over. Any feeling if this is reality? Any estimate on what I give up rolling them? Thanks. You have already been helpful.