Investors have Unrealistic expectations about returns from the Indian markets

Over the past few years, investors have built exaggerated, unrealistic expectations about returns from the Indian markets. If you look at India's macro economy, it has not done well compared to China. But on the corporate level, many Indian companies have done well and have rewarded shareholders. If you ask me, India as an investment destination, there are still opportunities. I have maintained my outlook that in 2013 the markets will not perform well because they had a strong rebound from the 2008 lows to hit the 2011 peak. After that, economic conditions began to disappoint investors, but it has not disappointed me because I expected it to worsen.

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

The Keynesian policies

One of the goals of so-called Keynesian policies would be to stabilize economic activity. In other words, you don’t have huge business cycle fluctuations and you have relative price stability. But please, tell me, where is economic stability nowadays, and where is price stability? Oil prices move up and down like crazy, home prices move up and down like crazy, and the stock market does the same. There’s far less stability than there ever was before, complementary of the Federal Reserve and essentially of the US Treasuries fiscal policies.

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