Marc Faber Blog

Friday, April 17, 2015

Monday, April 6, 2015

Japan monetary policy like a "ponzi scheme"

Abenomics is a failure. The real purpose is defeated. Income adjusted in dollar terms is tumbling, exports are down in dollar terms, while retail spending is low. Government debt is increasing and the Bank of Japan is keeping on buying bond. I see this like a ponzi scheme run by the government. 

While the Japanese market doesn’t attract me, international investors are bullish because in dollar income terms corporate earnings are improving.

Wednesday, April 1, 2015

Asset Allocation and Asian stock exposure

As an asset allocation I have 25 per cent each in precious metals, equities, real estate, and bonds and cash. This may not be the best of allocation. But it’s a disciplined approach. Today no one can tell where the world will go in the next three to five years. But with such asset allocation I am sure that in terms of purchasing parity I will be better [off].

I have been investing in precious metals. In fact, whenever there is a sell-off I had added them in my portfolio. Among equities, my investment in the US is near to nothing, though recently I have added some oil shares. My largest exposure is in Asia with investments in Vietnam, Malaysia, Singapore, Thailand and China. Six to nine months back I invested in China when valuations were really low and attractive. In 2012, I had invested in European shares. Some of my bond investments are in Latin America.

Monday, March 30, 2015

US Stocks expensive, Europe India reasonable valuations

The US is an expensive market, whereas Europe is attractive in terms of valuation. Emerging markets are inexpensive, while markets like India at 17 times forward [earnings] are not necessarily expensive. But there are stocks like Nestle that are trading at 50 times, which is expensive. Therefore, India is both expensive and inexpensive. You will have to be selective in terms of sectors and stocks.