Friday, September 9, 2011

Marc Faber: Obama Irrelevant, Accumulate Gold

Marc Faber was on CNBC-TV18 (India) on the 9th of September 2011.

When asked about the Obama Job plan, he said it was mostly irrelevant as it is more of the same and the public deficit won't decrease.

He also gave his take on Bernanke and QE3 and said that quantitative easing was unlikely at the moment because the money supply (M1 I suppose) was growing very rapidly at the moment.

He would avoid industrial commodities at the moment and recommend Gold.

He expects the market to correct further around 1000 or below (S&P 500) even tough the current rally may last a bit further. Emerging markets would also fall as the US market corrects. So if he was heavily invested, he would lighten his positions if the rally goes further.

Since the interview was in India, he also talks about the Indian Stock market and that investors will a long time horizon (5 years and more) should invest in the Indian stock market, but that they should not expect 20% yearly return and that 5 to 8 percents per year would be more likely..

The last question was about currencies and he explained that the US dollar is probably better than the Euro at the current time, but that all paper currencies are not desirable before of negative interest rates and recommend to accumulate Gold as he could make the case that Gold is cheaper than when it was at 300 USD based on the increase in debt and monetary base.




If you want to invest in the Indian Stock market you could do so with iShares S&P India Nifty 50 Index (INDY) in the US among other or iShares BSE SENSEX India Index ETF (2836.HK) in Hong Kong

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