Marc Faber : We don't have recessions yet, although there have been
slowdowns in economic activity and some corporate profit
disappointments. The big question is whether we have a problem in six
months to one year's time that results from a meaningful slowdown or
even a crash in the Chinese economy. That may happen.
Second,
it's not everywhere, but in some cases I see bubbles in the real estate
market, as there are in everything that relates to luxury—luxury
properties, paintings, collectibles, the luxury department stores and
shops, the Swiss watch companies. They're all doing very good business. I
think there's a bubble essentially in everything at the high end of the
market. That concerns me a little bit. It may continue for another year
or so but will not last forever, so I'm relatively cautious.
Having
said that, lots of companies in Asia do not cater to the high-end
consumers but to the rising middle class. I believe they are reasonably
well positioned to weather even a recession. - in the aureport
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