What are the chances of the US Fed Reserve tapering its asset-buying programme?
Marc Faber : I think capital flows have moved out of emerging economies because the
US equity markets have started performing well over the last one year.
Investors must realise that the yield on US 10-year treasury notes
bottomed in July 2012 at 1.43%, and after that it moved to 2.88%. In my
view, the asset purchase programme of the Fed has been a complete
The US economy is still weak, otherwise McDonalds and
Walmart would have reported much favourable results. Given the weakness
in the economy and employment, and given the frame of mind of Fed
members, most of them are extremely dovish. I think there will be no
tapering of bond-buying programme. And I won't be surprised if in a
year's time the Fed increases asset purchases.- in ET Now
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.