India could see a 20 percent Correction

In terms of sectors, India’s consumption sector looks good but some valuations are high. Companies which provide services to the infrastructure sector look attractive. I am also bullish about the banking sector—both private and public. If Modi is serious about reforms, he will have to ensure that state banks operate like some private banks and fare even better.

But some Indian stock valuations are stretched by more than 50 percent. A 20 percent correction in India’s stock markets will not surprise me. But I am not going to sell; it is something I can live with.





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

India should have smaller Government not bigger Government

It's a big issue globally because we live in a world where everybody knows bureaucracy is bad for business and small businessman suffers under the bureaucracy, whereas the large corporations hire lawyers, auditors, and lobbies where they influence government's decisions and regulations.
The media has brainwashed the electorate to expect the government to do something. The best economic policy of any government is to do nothing, but reduce the size of the government, reduce the size of the laws, and reduce the size of regulations. Though in today's social thinking it's difficult to implement.



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

India has a structural current account deficit and so the currency is more likely to weaken

Marc Faber: Basically countries with large trade and current account deficits tend to have a weakening currency. On that score, India has a structural current account deficit and so the currency is more likely to weaken in future than to strengthen.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.