Marc Faber : the US market will eventually join the Emerging Markets on the downside

Speaking to CNBC-TV18, on Feb 21, 2011 , investment guru Marc Faber said oil prices could go up substantially from current levels



Marc Faber :'...Well My view is that the US market will eventually join the emerging markets on the downside because if you take a bearish view about the emerging economies, you cannot be too optimistic about the US because for many US corporations, 50% or more of their profits come from emerging economies. and My main concerns are these: first of all, I think that not all is well in China. That if the Chinese economy slows down more then what analysts expect, we could have a downdraft in commodity prices and all the warrants on China — whether it is Brazil, Australia or Indonesia would get hit quite hard.Secondly, I think that the geopolitical tensions in the world are increasing. In particular, if I were in India, I would be concerned about the events that are now occurring in Pakistan and Afghanistan. and This can also have an impact, obviously, on the valuation of equities. But I mean We shouldn’t forget that all the central banks in the world basically only know one thing and that is to print money. And when things will get bad, they will print more money. If they get worst than bad, they print more money.
Independently, whether that is the Bank of China or the Reserve Bank of India or in the US all the central banks will keep interest rates artificially low and they won’t increase them to a level where inflation adjusted they are positive....I am overly negative about assets and corporation stocks assets like commodities or real estate and so forth , I would be very concerned about the bonds market...."