Saturday, January 11, 2014

China has an Overcapacity Crisis


Marc Faber

Marc Faber


China has an overcapacity crisis, but rapidly growing economies have recessions from time to time. Long-term, I would use weakness in Chinese equities to buy.

I think we’ll test the lows again, but over the next two years, it’s probably time to buy again.

Japan is cheap, it’s at the level of 1981, Taiwan is at the level of 1987, South Korea is also at the level of 1987.

In some of these markets, dividend yields are three times bond yields, while that situation won’t last as companies cut dividends at least 50 percent, at least you get paid to wait.

If you start buying equities today, over the next 10 years you will make some money.



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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Dr. Marc Faber Tomorrow's Gold







Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.