Tuesday, June 9, 2015
Gold Mining Shares , The one asset class that is very Depressed
There was an exception last year where in China the economy was slowing down and over the last 12 months, the Shanghai index is up more than 100 per cent. So all I am saying is that in this current money-printing environment there is a lot of volatility. Even in the EMs, there are markets that are fully priced and some have potential.
We also need to consider the currency in case of Japan, for instance. When the currency went down, the stock market rallied sharply. Hence, it is not easy to generalise. But, I would say that appears to me to be very depressed, absolutely and relatively, is gold mining shares and mining stocks in general. Another asset class that was oversold a bit and has now gained somewhat is oil shares and oil servicing companies.
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.