Monday, August 21, 2017

Stocks in India, Asia and Europe more attractive than US Stocks at current valuations

I have maintained for the last 18 months that I would rather own Indian shares than American shares. Now the Indian market is relatively expensive but I still prefer to own shares in Europe and in emerging economies than in the US. 

Monday, July 17, 2017

Global economy is actually weakening rather than strengthening.

"Recent economic statistics would suggest the global economy is actually weakening rather than strengthening.”

Thursday, June 1, 2017

Cash is not the King in a money printing environment

Central Governments are pumping their economies

"It’s difficult to say what will trigger the downfall of asset markets. In a normal, non-manipulated, free-market environment, cash is a very desirable asset. But in a money-printing environment, cash is dangerous. The valuations in the US, as Jared pointed out, are high. They’re lower in Europe."

Tuesday, May 30, 2017

Marc Faber says to avoid passive investing

Western world declining relative to China and India
Marc Faber says the Western economies are declining compared to countries such as India and China. The millennials earn much less than their parents did in real terms. And Dr. Faber thinks it is a sign of a massive shift in economic and political power from the West to the East. He says that in 1960 China and India was just 5% of the global GDP but today it is at 30% of global GDP.

Japan And US similarities
In 1989, the Japanese stock market capitalization was only 50% of the world stock market capitalization. Today, the US is at 52%. It is likely to follow the lead of Japan.

Affordability is not there
The Fed and other central banks slashed interest rates to boost asset prices. At the same time, the cost of living for young people has gone up substantially across the Western world. Dr Faber says, "If affordability goes down, demand can't be strong." In major US cities like NYC and Seattle, people spend around 50% of their wages on rent. 

US Treasuries
Interest rates are kept artificially low. Faber thinks it's an unprecedented experiment that will end badly. Faber says, "I would be reluctant to short treasuries now... just look at how long the rates have stayed low in Japan." 

Index Funds and US stock investments
"How do we invest in this rapidly changing world?" asks Mark Faber.  He advises to avoid passive investment, US equities. US equities are the most expensive relative to other markets. Faber points out that the resource sector is very depressed today: "If I had to chose one sector, it would be the resource sector." Faber also believes that the US dollar will weaken going forward. 

via mauldineconomics

Friday, May 12, 2017

If the markets go down, I suffer too

We have roughly inflated asset markets. I also own shares, I also own bonds, and I also own precious metals. I also own real estate. So if asset prices go down, I suffer like you and everybody else. But at least I know that it can happen.

Marc Faber News

Nouriel Roubini Blog

Jim Rogers News

Bob Janjuah News

Gary Shilling News

Warren Buffett News

Dennis Gartman

Doug Kass News

Suze Orman News