Thursday, February 18, 2010

Marc Faber : China economy to fall down and will take down the US Stock Market

Marc Faber China's Economy to slow down considerably and will drag the US Market down 20%

Dr. Marc Faber editor and publisher of The Gloom, Boom & Doom Report was on CNBC by phone from Thailand this 17 Feb 2010 , he answered questions regarding the China's credit growth and economic slowdown and its implications on the US market : "The issue for 2010 is to what extent China will slow down " says Marc Faber "It certainly will slow down because the loan growth we had last year which was over a trillion dollar and generally actually accelerated to 200 billion dollars , in other words bank loans generally were rising at an annual rate of something like two and half trillion dollar on a GDP that is slightly over 4 trillion dollars , it is not sustainable in the long run and we have a lot of excess capacities in China in different industries and in particular in the real market , so credit growth will slow down and that obviousely will slow down the economy" Marc Faber explained
"I would not buy Chinese stocks here," Faber tells the Fast Money desk

"I would be careful of any asset that benefited greatly from the China boom in 2009 because (their earnings) are not sustainable" Faber added
Marc Faber expects the Dow and S&P “fall 20% from the January highs

Dr. Marc Faber Tomorrow's Gold

Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.

Dr Faber studied economics at the University of Zurich and, at the age of 24, obtained a PhD in economics. He publishes a widely read monthly investment newsletter The Gloom, Boom & Doom Report, which highlights unusual investment opportunities, and is the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Tomorrow’s Gold was for several weeks on Amazon’s bestseller list and has been translated into Japanese, Korean, Thai and German. A regular speaker at various investment seminars, Dr Faber is well known for his contrarian investment approach. He is also associated with a variety of funds.