ET Now: Now that the emerging markets have corrected, do you think it is time to revisit emerging market equities or global equities?
Marc Faber: We
have to look at each emerging market separately because of the
diverging performances. Since 2009 we have seen great performances in
the Philippines, Malaysia, Indonesia and Thailand, where markets went up
by three to four times. On the other hand are markets like India,
Brazil or Russia, which are still down in dollar terms by 50% from their
highs. Therefore, each emerging market is in a different position at
In my view, there has been a huge correction in
Indonesia and Thailand from the recent highs. The market is down by
around 30-35% from the April-May high, but following a rebound, we will
see further weakness.
Indian stocks, because of the currency
weakness, have already experienced a very substantial bear market. It
may last a little longer, but we surely are coming into a buying range.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.