China to deflate credit bubble

Whether China can ensure continuous growth will depend on reforms and how to deflate the colossal credit bubble we have in China. This is going to be a huge problem because we have so much underground credit, questionable loans outstanding and questionable investments.

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

Emerging markets good and bad

Emerging markets have to be looked at in a segregated way. Some of them have performed very well this year, and the markets like the Philippines, Indonesia, Thailand and also India performed well last year. Others have performed miserably like China and Vietnam. So we have to look at each emerging market separately. I do not think that Cyprus has a large impact on emerging markets, but we have to see that the markets in general are overbought and any news, no matter how irrelevant it is, will have an impact and they lead to a correction or even a sharp decline.

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

China export numbers overperformed market expectations

China's recent strong export numbers, which blew past market expectations. China's export data for February showed a 21.8 percent year on year spike, in contrast to analyst expectations of 10.1 percent. However, the reliability of this data has been questioned due to its inconsistency with neighboring countries' data including South Korea and Taiwan, among other things. Faber said he expected China's economic growth to be much lower in reality, and even hinted towards a recession in some sectors of the economy.

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

China could have recession in certain sectors

I think the Chinese economy has slowed down a lot...but they will not miss their 7.5 percent target, they will announce it, but the reality will be much lower. If you look at the statistics that are more reliable like Korean, Japanese or Taiwanese exports... then export figures from China don't add up entirely," he said. The economy in China will slow down and we may even have in certain sectors a recession... The question is about the future. I think China will still grow but there will be bumps along the road and political issues," he added

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

Emerging markets depends on China

Marc Faber interview with Economic Times of India ET Now: Experts do expect the US to clock 4% GDP growth this year and it is trading near record highs. Do you see this factor limit a lot of fund flows to emerging markets? Marc Faber: For emerging markets, the crucial issue is only China. If the Chinese economy blows down meaningfully or even goes into recession, which is a possibility, then obviously all resource producers of the world will be badly affected. If the economy slows down, obviously the demand would decline and commodity prices would come down and bring about a more hostile environment for the resource producers. I do not pay so much attention to the US or the European economies with respect to emerging markets. The key is really China.

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