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.
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.
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by Nick Tay on May 22, 2013 at 00:01