Marc Faber,
managing director of Marc Faber Limited and the author of the widely
read monthly investment newsletter “Gloom, Boom & Doom” report, said
weakness in China’s economy could spell big trouble global markets.
Faber said that if the Chinese economy
grows at 3 or 4 percent—or even not at all, which he sees as a
possibility—it will have a huge, negative affect on industrial
commodities and the incomes of countries that produce them. In turn, he
said, if countries such as Russia, Brazil or nations in Africa, Central
Asia or the Middle East have less income, they’ll buy less from China,
Western Europe and America, leading to very little earnings growth or an
earnings contraction for those more prosperous economies.
China preferably would show trend line growth of 10 percent, as it has done for the past 20 years, Faber said. -
in Yahoo Finance
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
