Emerging market stocks outlook

Marc Faber : Broadly-based international portfolio should have at least 50% of its assets in emerging economies. We are talking about stock portfolios. The question is do you buy today or you wait? I do not know when the markets will bottom out. I do not know when the QE3 will be implemented, but I would say in Asia, you have a lot of shares that have a dividend yield of between 4 and 7%. You have zero interest rates on deposits. So I do not think there is a huge downside risk in equities. Now can they go down 20-30%? Yes, but if you cannot take the pain of downside volatility in the order of 20-30%, then do not even get up in the morning from your bed, stay in bed. - in ET Now




Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Greece is a bust, it is as simple as that

Marc Faber : "Greece is a bust, it is as simple as that. If it was a company, it would go into bankruptcy, into liquidation, into restructuring and the bond holders or the creditors would have to take huge haircuts, probably in the order of 70-80%. But here comes the government, of course the government and the IMF and the ECB, they know everything better than anybody else. So they bail it out. This is the problem I just explained. The financial system went bust. Now the governments are extending the credit and as a result, their credit worthiness is declining and eventually a lot of countries will go bust because they help the weak companies or the weak country survive" - in ET Now


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Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.