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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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.

Dr Faber studied economics at the University of Zurich and, at the age of 24, obtained a PhD in economics. He publishes a widely read monthly investment newsletter The Gloom, Boom & Doom Report, which highlights unusual investment opportunities, and is the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Tomorrow’s Gold was for several weeks on Amazon’s bestseller list and has been translated into Japanese, Korean, Thai and German. A regular speaker at various investment seminars, Dr Faber is well known for his contrarian investment approach. He is also associated with a variety of funds.