Monday, July 7, 2014

Marc Faber to MoneyControl : India Stock Market more attractive than US Market in 5-10 years horizon

Anuj: The interesting bit as you said the US market is in a bit of a bubble. So what kind of correction is required for the markets to be back in the buying zone in the US market, for example S&P at 2,000, Dow at 17,000, what levels would be comfortable for a fresh buy?

Marc Faber : In my view if you buy today US stocks the expected return over the next five to ten years is at best even, in other words you are not going to lose any money but I don't think you will make any money. For me, the US stock market will have to decline; say 30-40 percent until it became relatively attractive again. Before that I don't think there is much value. But as is the case in India, the stock market consists of many different companies, different sectors and some sectors in the US are depressed like the mining sectors, the gold mine and the silver mining shares are very inexpensive relative to the rest of the market. Like in India, in recent years most of the investor money has gone into ETF . From here onwards stock selection will be more important. - in MoneyControl July 2014

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.

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