Faber: Still early to commit to Emerging Markets Except Vietnam & Iraq

Marc Faber : I think you need to be fearful. if you take a view for the next five to ten years, and you look at valuation of u.s. equities and the valuation in emerging economies, then i think i can make the case that over the next five to ten years i will make more money by buying now in emerging economies than in the u.s. having said that, i think it's still too early to make a major commitment to emerging stock markets, except as i pointed out before, in Vietnam or maybe in Iraq. but in general, i think it's too early to do it. they can still decline. . on the other hand, in the u.s., it's probably too late to buy, because on march 6th, 2014, we are in a five-year bull market and by the end of march, we will be in the second longest bull market for the last eight years. and usually these long bull markets, they end badly. in a crash like in '87 or in a significant decline like after march 2000. right. or after october 2007. so i don't think that it's a very opportune time to buy equities.

 

The Gloom, Boom & Doom Report publisher Marc Faber shares his global economic forecast. "Emerging markets can still decline, and it's probably too late to buy in the U.S.," he says.

"Usually these long bull markets, they end badly," he said, pointing to the 1987 crash and the significant declines in 2000 and 2007.
"So I don't think it's a very opportune time to buy [U.S.] equities," Faber added.
While it might be too early to buy some of the beaten-down emerging markets at these levels, investors can make money in the longer-term, he said.
"I think I can make the case that over the next five to 10 years, I will make more money by buying now in the emerging economies then in the U.S.,"

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.