Marc Faber: Dollar Due for Rebound, Emerging Markets Worth Considering

Video Source: WSJ.com

Dr. Marc Faber, managing director of Marc Faber Ltd., in a video interview dated 10/29/09 at Barron's Art of Successful Investing Conference, comments on the dollar, global economy, and his advise to investors to increase holdings in emerging markets.

Markets Now Have More Risk

Faber sees that we are ahead of the fundamentals in terms of the economic recovery. The economy will continue to disappoint, so markets have more risk today. On that note, he is now more cautious about getting into equities than when he was in March.

Dollar a Long-term Bear

In general, Faber believes the U.S. dollar is probably at a low point and could have “some kind of rebound”, but it remains in a “structural long term bear market” in terms of purchasing power. Sadly, other currencies are not any better either.

Protectionism Not the Answer

Faber observes “some kind of protectionism” in the world, for example, the U.S., but he does not believe currency devaluation would solve anything as some tend to believe.

Emerging Markets, Now Is the Time

Since most investors are underweight on emerging markets, Faber recommends that now is a good time to increase the holding in emerging market stocks in countries such as Thailand and Vietnam, as price levels are still low and could “hold there for a long time.” He did caution investors about the Thailand stock market because the King is ill; however, he thinks overall the upside potential far outweighs the downside risk.

Zero Rate Kills Cash

Faber also says cash at current zero percent rate is less attractive than equities in the long run.

Disclosure: No Positions

Comments

[TradingHelp...:]

Thank you for telling me what Marc Faber thinks.

What do you think?

Oct 30 10:50 AM

[PairsTrader:]

Why don't you go read all 25 other SA articles by Ms. Chu's before asking this question??


On Oct 30 10:50 AM TradingHelpDesk wrote:

> Thank you for telling me what Marc Faber thinks.
>
> What do you think?

Oct 30 10:00 PM

[Static Chaos:]

Roubini, Faber and Schiff are Drs. Doom, Gloom and Doomer. But Faber is right about the dollar and emerging markets. I already got some in AUD, and may take a look at the Thai stock market mentioned here.

Oct 30 10:34 PM

[PairsTrader:]

Right behind ya, bro

On Oct 30 10:34 PM Static Chaos wrote:

> Roubini, Faber and Schiff are Drs. Doom, Gloom and Doomer. But Faber
> is right about the dollar and emerging markets. I already got some
> in AUD, and may take a look at the Thai stock market mentioned here.

Oct 30 10:38 PM

[markturok:]

There are tremendous opportunities in Asia as long as one does their homework. Traders will have to be quick and nimble in this current market environment. Gold and silver look pretty good right about now. Thanks for posting…I must have missed this interview.

Nov 02 02:10 AM