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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