Monday, June 10, 2013

Marc Faber : I own some issues in Hong Kong, but without great enthusiasm

Marc Faber : I don't know how the world will look in five years, so I have heeded Ray Dalio's advice to diversify. [Dalio heads the investment firm Bridgewater Associates.] I keep 25% of my assets in equities. I haven't shorted anything yet, although I am tempted to short the S&P or the Russell 2000. I don't own U.S. stocks, but I hold some Asian shares, including Singapore real-estate investment trusts, which I will discuss momentarily. Markets in the Philippines, Indonesia, and Thailand have quadrupled from their post crisis lows, and aren't attractive any more. But I still hold some shares in these markets with relatively high dividend yields.
Three other Asian markets—Japan, Vietnam, and China—performed miserably for most of last year. I'm not keen on Chinese equities, but if conditions worsen and China prints money like crazy, the currency will weaken and stocks will rise. I own some issues in Hong Kong, but without great enthusiasm. I own Swire Pacific [ticker: 19.Hong Kong], Hang Seng Bank [11.Hong Kong], Sun Hung Kai Properties [16.Hong Kong], and Fortune REIT [778.Hong Kong], which owns shopping malls. One China play I like is China Mengniu Dairy [2319.Hong Kong]. - in Baron's


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