Chinese Stocks : Not many people made Money despite the spectacular Growth

ETF.com: Over the past year, frontier markets have done extremely well compared to emerging markets. What are your thoughts on frontier markets?

Marc Faber: I have to go back some time, because the expression "frontier markets" did not exist in the '80s or '90s. It's a more recent expression for markets and economies that haven't opened up yet and are more recently opening up and joining the global economy. So, what you would have called emerging markets are now called frontier markets. Some of them have colossal booms, and then also colossal declines.
Now, is Vietnam a frontier market or an emerging market? In my book, it's basically an emerging market. But it's ranked as a frontier market. And Mongolia is also a frontier market, as are most African markets.
Some of them have had good performance, because the zero percent interest-rate policy of the U.S. means that capital flows somewhere in some kind of assets. Frontier markets are relatively risky assets. Five years ago, all the German dentists were investing in Vietnam, and then it collapsed. More recently, they all wanted to buy Myanmar assets.
But investors must understand, yes, long term, they will grow, but there is an execution risk. I'm the chairman of a fund in Cambodia, and I'm not managing the fund, I'm just the chairman of the board, so I look after investors' interests, but the manager so far has really failed to perform particularly well, given the strong growth rate Cambodia has, for the simple reason that they invested money in numerous assets that didn't work out.
So this is not such a simple game. We always have to consider, optically China had macroeconomically the best growth anyone could imagine for the last 15 years. But I wonder who has made money in Chinese stocks. Not many people. - in ETF.com



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.

Macau Casinos Shares are Interesting

Stock market expert Faber warns of Chinese stocks " The good companies are not cheap, and the bad ones are so bad that I do not want it ," says the well-known Swiss stock market expert Marc Faber . What opportunities China offers investors yet . "I do not particularly like Chinese companies . The good companies are not cheap, and the bad ones are so bad that I do not want it , " Faber said in an interview . " Who wants to take advantage of China, the best buys are shares from Hong Kong. Moreover, shares of casinos in Macau are interesting . If China does not suddenly legalized gambling on the mainland, the growth is expected to continue there. " In addition, Faber does not believe the official statistics, China growth . Thus, the alleged growth of seven percent this year is much too high. " Four percent at most ! " Said Faber Growth was . Bloated. " In recent years, China has extremely extended the credit amount . Growth with much money you can always blow up . "

- via (In German ) http://www.wiwo.de/finanzen/boerse/marc-faber-boersenexperte-faber-warnt-vor-chinesischen-aktien/8887632.html

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I am not a Specialist on Chinese Stocks

TGR: Could the slowdown in China be the tipping point for a correction?
Marc Faber : The Philippines, Indonesia and Thailand have performed superbly in the market, up four times the 2009 lows. Other Asian markets have performed miserably, like China and Vietnam, and until recently, Japan. There are opportunities in China and Vietnam, but it is difficult to know the true financial condition of Chinese companies because of so many off-balance sheet items and a lot of cheating and fraud going on. I'm not a specialist on Chinese stocks, but let us not forget that a large hedge fund in the U.S. recently had a major position in an agricultural company in China that turned out to be a fraud. I imagine that that hedge fund did its due diligence before buying so heavily into one company, so the company must have been very good at hiding the truth.




Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I might go for a rebound in Chinese Stocks

Marc Faber : “If I had to really choose something, I might go for a rebound in Chinese stocks,” he said, adding that he would play it through Shanghai - in CNBC

Chinese Stocks can rally 10% to 20%

Marc Faber : “I own corporate bonds and I recently, as I wrote, I pulled some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country. But it is in small doses. I wouldn’t put all of my money in corporate bonds. They have an equity character. I also own equities still in Asia and as I pointed out already four months ago for the first time in my life I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed. I think what people overlook today is they look at markets but they don’t look at what happens within the market. In the last 12 to 18 months the U.S. has massively outperformed European markets, Asian markets with a few exceptions and now some markets are relatively depressed. I could argue the Chinese stock market is now relatively depressed. So the asset allocators may move some money in Chinese stocks and then they can rally 10% to 20%.” - in Bloomberg
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