Wednesday, August 12, 2015

Marc Faber Comment on The Yuan Devaluation 12 Aug 2015

ET Now: There are lots of jitters across the globe with respect to the yuan devaluation and the implication that this can have across the globe. Your take?

Marc Faber: We have to put this in the context that China allowed the currency to float down by a tiny amount when we compare this with what the Yen weakness and the Euro weakness has been against the US dollar. Nobody is talking about that, but that the Chinese would let the currency depreciate by a tiny fraction is making headlines everywhere.

We do not know exactly why they did it because 2% devaluation is not going to help exports and even a 10% or 20% devaluation is not going to help exports meaningfully in a world that is slowing down. My view is that the central banks around the world would talk to each other and the Federal Reserve talks everyday to the ECB, to the Bank of England, to the Bank of Japan and so forth. The Fed may have very well told the Chinese why don't devalue their currency somewhat. This will give the Fed an excuse not to increase interest rate in September. - Excerpts from The Indian Economic Times

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.

1 comment:

  1. China devalues to capture markets. Against Malaysian exports for example. imported Chinese made wheel barrows are sold at rm75 while Malaysian Prestar wheel barrows are retailed at Rm90. I have already replaced 3 Chinese inferior wheel barrows while the Malaysian made one is still in good condition. And with the fall of ringgit all Chinese imports cannot compete. I think this is one of the reason why China weakens the yuan


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.