Tuesday, July 17, 2012

Marc Faber : European Equities are now Cheap and a good Investment

Marc Faber : What we have is a rapidly slowing global economy. What we essentially have in the advanced economies are zero interest rates. I guess that the downside risk to real estate and equities is for now limited. I obviously still own real estate and since we talked I added to some real estate in Thailand - not that I particularly am optimistic about real estate in Thailand because prices have moved up a lot already. I just want to have some money in hard assets because I think eventually we will have a financial crisis where financial assets will be under stress. The only thing that I have changed meaningfully since our discussion in February is the following. For the first time in my life, I have been buying some European stocks because I can see the markets of Portugal, Spain, Italy, Greece and France near the March 6 2009 lows. The equivalent at that time was the S&P at 666. We are now at 1350 so basically these markets relative to the rest of the world are very cheap and some stocks in the markets are perfectly fine companies but because these markets were weak and because there is a threat of a euro break-up, everything has come down to very low valuations. - in an interview today with citywire.co.uk


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