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.

Monday, March 23, 2015

Own Gold as a hedge

One generally owns some physical gold because in the back of their mind people know something may go wrong in the financial system. We had debt crisis in 2008 and 2009 and now global debt levels have increased by another $57 trillion. Global debt as a percentage to global GDP continues to expand. No one knows how this will end and in this environment one would want to own some real estate and some precious metals.

Wednesday, March 18, 2015

Oil could trade to around $40 to $60

The same analysts who had predicted that crude would go to $150 a barrel when oil was at $100 are now predicting it will drop to $20. My feeling is that crude will stabilise between $40 and $60 a barrel.

Monday, March 16, 2015

Fed will print money if dollar gets too strong

In my view, if the Dollar because of the moves overseas becomes even stronger, the Fed will then use the strong dollar as an excuse to ease again.

Wednesday, March 11, 2015

To invest in India better than USA, Europe

My sense is that if you look at the world, and if you break it down into the US, Europe and emerging economies, then the US market is the most expensive market.

If you have to invest your money in the next 5-10 years, your choice is the US, Europe and, say, Asia and India, then I would say I would rather have money in India than in the US. 

Monday, March 9, 2015

Greece could get closer to Russia and China if it exits EU

In the discussion on Greece what is frequently overlooked -for the NATO, EU and the US, an exit of Greece might open up an opening of closer relationship between Greece and Russia or Greece and China, and that the western allies want to prevent at all costs. 

So I think in the context of Ukraine where the West will have to make concessions that Russia controls Eastern Ukraine including the strategically important cities, at the same time a compromise will be made that Russia stays out of Greece and that more money will be forthcoming from the EU, maybe partly also paid by the US. But strategically speaking Nato, EU and US don't want Greece to leave because its strategically very important. 

Wednesday, March 4, 2015

Greece cannot repay its debts says Marc Faber

The Greek problem has been postponed, it has not been solved and the problem is really that it has debts. The country with its economy simply cannot service or pay the debts amount which amount to something like  $250 Billion to $300 Billion and the economy is not strong enough to support that. 

Monday, March 2, 2015

Marc Faber is chairman of the India Capital Fund

I am the chairman of the India capital fund and so I invested in India already over the last two years and the India capital fund, because it was overweight banks, last year was up around 50 percent. 

So I am not inclined to buy right now although I think that the market could finish the year somewhat higher when it all depends also on foreign investment flows and on foreign economies and ideally as I mentioned before that the global economy is not healing, but it is slowing down largely because of a very meaningful slowdown in China.