Marc Faber : Invest in Europe Now

Marc Faber: You talk about commodities having outperformed stocks? That is not quite correct. Agricultural commodities have done well recently, but say industrial commodities have underperformed equities over the last two years. I would say the opportunity in my opinion, and as I have written about this in my reports, is essentially to now pick up some European shares at very distressed valuations. Two years ago a book was published 'Invest in Europe Now'. Of course the timing was not particularly good and the markets since then in Europe have completely imploded. Now recently the markets have bounced off their lows in the case of Italy, Spain, Portugal and France by between 18% and 30% from the lows in June-July. The correction is now coming, but I do not think we will see new lows because whereas two years ago the sentiment was very optimistic about the Euro and about Europe, now it is at an extremely negative reading. There is nobody who has anything favorable to say about Europe, but stocks are at discounting mechanism and they have pretty much discounted all bad news. - in ET Now
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