Marc Faber Blog

Thursday, April 24, 2014

Hong Kong properties are on sale

A Chinese recovery would essentially mean that the property market in China is not overheated, and that property prices will not decline. In which case, Hong Kong property companies would become rather attractive, because they sell, in some cases, at almost a 50 percent discount the net asset value.

Tuesday, April 22, 2014

Buy Hong Kong and Vietnam shares instead of Chinese shares

If you want to play a recovery in China, then I think you're better off buying Hong Kong shares, because in Hong Kong, you have reasonably good corporate governance, you have very-well-managed companies, which are owned largely by families. So the families are ready to be conservative in their dealings. They have low leverage. So if you believe that China is bottoming out and going up, I would own some Hong Kong shares, as I do.

Another recovery play—a market that has a similarly poor performance to China over the last few years—is Vietnam, which is very cheap, which has deleverage and improving fundamentals in terms of growing trade surplus, rising exports and so on. So I think Vietnam is better than China itself, if you believe in the Chinese recovery.

Monday, April 14, 2014

Bad market crash warning

I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations. They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run.

I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash. And I suspect it will be even worse. 

Monday, April 7, 2014

Bitcoin dependent on electricity and the "System"

I don’t know the value of a bitcoin. I own gold because when the system breaks down, I want to have some cash. With a bitcoin, there is a scenario where the system breaks down and you have no internet access and then what is the value of your bitcoin?