November 02, 2012

Marc Faber 2012

Marc Faber was interviewed at the Barrons Art of Investing Conference last week.

Faber, like Felix Zulauf is bullish on Japanese equities and he also thinks that Chinese shares can bounce.
”The Chinese can postpone a more serious recession by easing, but it won’t solve the problem. The Chinese stock market could outperform for a while.”
With respect to Japan, Faber also sees the yen weakening. The BOJ announced another round of quantitative easing yesterday. It should be noted that the yen appears to have started a downtrend as it’s fallen about 7% in the last few months.

“If the yen weakens, Japanese shares will be attractive and Japanese bonds, unattractive. I recommend some exposure to Japanese equities.”

Overall, Faber is bearish on the economy and he expects a correction in stocks that could be over 20%.

“Asset markets such as equities are vulnerable to at least a 20% decline. If you have cash in reserve and the market falls, you can start buying.”

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.