Thursday, April 16, 2015

There is very little value in Financial Assets

Sonia: So, according to you Marc which Asian equities have value now? What is your pecking order looking like? 

Marc Faber : If we talk about value, there is very little value in financial assets. If you look at bond yields in Europe and now the 10 year Swiss Bank government bond has a negative yield. And the French government bonds 10 year yields half a percent. In the US government bonds yield 1.9 percent. So, when we talk about value there is not that much value, what there is, is relative value. So, let us say we are obtaining today USD 1 million and our choice is to invest in the US stock market which is relatively high or in India or in Asia in general for a period of 10 years, the Asian markets over a 10 years period will perform better than the US stock markets. You see, India has one advantage and it is that in my view, not everybody will agree with that but in my view, India has probably the world’s best central banker, Rajan and he has kept interest rates at the high level. Now, some people say that is not necessary, you should cut rates, but I think the message from the Reserve Bank of India is really currency stability is number one goal, objective. And once they achieve the currency stability inflation is going to come back and confidence will come back and money will flow into India and then they can start to lower interest rates. - in CNBC TV 18

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.