Tuesday, December 13, 2011

Marc Faber : At times Equities are better than Commodities

“We cannot be too dogmatic,”
“I am also interested in commodities in the long run, but there will be times when equities are better than commodities and there will be times when you have to move back into commodities.” Marc Faber, editor and publisher of The Gloom, Boom & Doom Report” said in a keynote address at the IndexUniverse’s 4th Annual “Inside Commodities” conference held on Dec. 8 at the New York Stock Exchange. - in indexuniverse

Why Marc Faber is Bearish on China

Marc Faber : “The reason I’m not very keen on China at the present time [is because] we had a credit bubble, we still have artificially low interest rates and a huge fiscal deficit in orders words artificial stimulus. That’s coming to an end. Yes, the government can further stimulate and slash interest-rates again and reduce reserve requirements, but it will just postpone the problem and aggravate the problem in my opinion.”
“When you have an economy like China that becomes so big so quickly, you can have a more meaningful setback. If the U.S. economy grows at 3% or contracts that 3%, it has no impact on the price of copper to speak of….In the case of China, whether the economy grows at 10% or 5% as a huge impact on the demand for iron ore and copper and aluminum, steel and coal. The Chinese economy today has a much larger impact on the rest of the world than is generally perceived economically speaking.” - in wallstcheatsheet

U.S. Equities Not Terribly Expensive

Marc Faber on his latest report : “It’s actually quite gloomy but if you’re very gloomy what do you invest in: Treasuries, Italian bonds or commodities or equities? I happen to think U.S. equities are not terribly expensive, so relatively speaking to other assets, they may for a while actually do quite well.” - in wallstcheatsheet


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