Faber: In his own words

EXCLUSIVE: There's no economic growth in Asia, the US is insignificant and we're heading for another financial crisis. Read the transcript of Citywire Global's conversation with Marc Faber here.

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by Emily Blewett on Jul 17, 2012 at 10:28

I think that it’s possible that the US may rally as the whole world thinks that the US has natural gas and there will be a re-industrialisation in America. The mood amongst international investors is that the US is the least bad choice.

I’ve always said if you give me the choice to buy a 10 year treasury at the yield of 1.5% or Johnson&Johnson, I’d rather buy Johnson&Johnson with a ten-year view. But as I said, if I look at all the options that I now have, I can see that European stocks are now terribly depressed.

I still own Asian shares and again the reason I own them is we have next to zero deposit rates and my portfolio of Asian shares has an average yield of say 5-6%. If I look at my investments, I think that they might go down 30% but I don’t think there will be massive dividend cuts – some here and there but not across the entire portfolio.

I still keep a lot of cash because if the markets drop another 30% - which I hope they will do – I will then invest in equities.