Wednesday, September 18, 2013

Indonesia & Thailand Markets : There has been a huge Correction from the recent Highs

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 the moment.
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.


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