Monday, January 9, 2012

Buying opportunity

Marc Faber : ... what we had in 2008 was the outperformance of the US and emerging economies’ stock markets and commodity markets got hit very hard but it lead to a major low in emerging stock markets that bottomed out between October 2008 and March 2009 and after that emerging stock markets outperformed the US until say the end of 2010. So I think we may get a similar picture. That’s why when I read all the strategies that say - I think we should invest in the US, I say maybe that’s correct for the next three months or so but I would rather be looking at an entry point in emerging markets over the next six to nine months... - in MoneyControl

US vs. Emerging Markets

Marc Faber : We have to clarify ... how bad it was for equities worldwide because the US market was flat and it significantly outperformed most other markets in the world in particular emerging economies stock markets. This resembles the underperformance we had in 2008 that made the major buying opportunity. What we will have in 2012 is initially maybe some maybe further weakness in emerging economies against the US market and then a major low in emerging stock markets, including, India... we are getting there slowly. - in Moneycontrol

If the S&P drops another 10% more QE

Marc Faber : If the S&P drops another 10% you can be sure that there will be more QE in the US. So the markets would be supported by additional liquidity injections. - in Moneycontrol


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