Marc Faber : Because I live in Asia, I am quite familiar with the Asian markets and economies. I have a bias toward Asian equities, especially because I can find deals in places such as Malaysia, Thailand, Singapore and Hong Kong—stocks that give me 4–7% dividend yields. With yields at those levels, at least I'm paid to wait. Even if they're cut 5%, I'd still get better cash flow than I would from, say, U.S. government bonds. Consequently, I feel reasonably confident owning such shares.
I have allocated only 25% of my portfolio to equities, if the markets
were to drop 50%, I would have funds elsewhere in my portfolio to buy
more equities. That's not a prediction for a 50% market decline; it's
just to say that I'm positioned in such a way that I could put more
money in equities through a) my cash flow, b) my income and c) my cash
position. And I do own some gold shares through stock options, because
I'm a director of several exploration companies. - in the aurereport