Tuesday, March 24, 2015

Decoupling between Economic activity and Asset Markets

ET Now: Do you think financial markets are very naive in the way they are reacting? The world is fighting for deflation, but despite a global growth scare, most of the major markets are sitting at a record high, be it DAX, the Nikkei or the NASDAQ.

Marc Faber : Yes. There is decoupling between economic activity and asset markets. If you look at the economies globally, we know that in Europe there is hardly any growth. Can Europe, relative to its poor performance of the last few years, grow this year by 1-1.5%? It is possible, but we understand GDP is not a very relevant measure of economic well-being. In the US, the latest statistics are rather disappointing and in China, we have meaningful slowdown as well as in all resource producers of the world.

John Anderson, my friend who is a very good economist and also has his own consulting firm, calculated that the GDP figures in India are actually overstating economic growth significantly. It does not mean that he is bearish about the Indian financial assets. I am also positive essentially about the Indian assets, but growth is not what the government is publishing.
- in Economic Times of India

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.