Marc Faber speaks on the importance of the Chinese economy to
emerging economies, and specially to its neighboring Asian countries:
"To clarify a point
about the size of the U.S. economy and its importance in the world,
China imported 12% of global metals consumed in 2000. Now it imports up
to 47% a year. China's growth has a major impact on emerging economies.
The U.S. has no impact because it is a service economy. China has gone
from sending less than a million travelers overseas in the mid-1980s to
100 million now. You hardly see American tourists in Asia any more."
Marc Faber on finding investment ideas currently and why Gold could go higher:
"All asset prices are in
the sky, whether it is Picassos or Warhols or the flat that Steve Cohen
is trying to sell. We are in a bubble. We are the bubble. It is only a
question of which asset is in a lesser bubble. The U.S. is expensive,
compared to the European market and especially emerging economies. Based
on the level of today's secular adjusted P/E, returns in the next seven
to 10 years will be minor, if not meaningless. The Mexican stock market
went up 343 times between 1984 and '87 because of money-printing. Then
the currency collapsed. The dollar can't collapse, so gold will come to
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.