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.