Faber : India could easily grow at say 6 per cent per annum over the next 10-20 years

Doctor Marc Faber told The Economic Times of India recently that the bureaucracy can be reduced significantly in India, not a little but significantly. "If the economy becomes more market-friendly and capitalistic, I think India could easily grow at say 6 per cent per annum over the next 10-20 years,"

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.

Marc Faber to CNBC TV 18 : India to become the biggest Economy soon

Marc Faber says emerging markets have become relatively inexpensive versus developed markets. Investors are now realizing how inexpensive these EMs are and hence more money is flowing in, he adds.


Marc Faber : Concerning growth, first of all in India and elsewhere among people who invest in India, the view was that India could be the fastest growing economy in the world in the next 5-10 years. I do not think so. That is overly optimistic and overly optimistic expectations. If India, let us take worst and best case. Worst case India grows at 3-4 percent per annum. Best case it grows at 8 percent. Both are not very likely. So let us assume it grows at 4-5 percent per annum. That is still a fantastic growth rate compared to other countries, compared to the whole of Western Europe, compared to the United States. People have misconception about growth; they think that an economy can grow at 8-9 percent forever, that is not the case, it is not possible. So, I am happy if India grows say at, 4-5 percent per annum.
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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.

Faber : India Could Rise 15%

Dr. Doom Offers 2 Stock Picks, But Gloomy Outlook 12/10/2014 1:23PM Marc Faber says developed world children will be the first generation in 200 years to have a lower standard of living than their parents. But he is optimistic about emerging markets and he thinks India’s market has 15% upside in 2015.



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.

India: Fiscal Deficit And Government Debt

The situation in India is a situation where the fiscal deficit is essentially very high and obviously the government debt is increasing. The rating agencies do their ratings. I don’t pay much attention to that. But obviously although they have a time lag, they probably are in the right direction in terms of downgrading India. - in Economic Times

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

I think there is an opportunity in India

Marc Faber : We are down in India from the early 2008 high by 40 percent in US dollar terms, in other words adjusted for the currency movements. We are not down 40 percent in rupee terms, but in dollar terms. I think that people pay too much attention to GDP growth figure etc and should rather focus more on individual companies. The problem in American economies is that a lot of money has flowed in and it has boosted the valuation of essentially very liquid stocks or big market cap stocks whereas smaller cap stocks are reasonably priced. So I think there is an opportunity in India, whether the index will go up a lot or not that I do not know, but for the active investor that does not buy the index, I see an opportunity. - in www.moneycontrol.com

Marc Faber

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

Faber : Oil Demand to Rise rapidly in China & India

They[Different commodities] move in general in the similar direction but maybe at different times. Now, say if the price of corn goes up substantially, the farmers can right away increase the production of corn and a year later the additional supplies will then essentially contain further price increase and the price will go down.

In the case of the oil industry and also for copper, once you have shortages developing, until new large reserves come on stream and until new mines essentially produce, the response time is very long and we have essentially in the world, coming from emerging economies – those would be China and India – very rapidly rising oil demands.

In China over the last fifteen years, oil imports, they have risen three times. China consumes now almost ten million barrels of oil a day. So the demand is there, if they slow down somewhat, long-term it’s there. Every oil well eventually runs dry. It cannot produce forever. New oil is very costly to produce. In other words you have to go and drill and you have to then extract the oil and there’s a lot of safety regulations and very costly, probably around eighty Dollars a barrel.

Marc Faber

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

Money is flowing out of countries like Indonesia, Philippines, Thailand into India

Q: This week in itself we have seen the Indian markets outperform the rest of the emerging market on the back of the domestic event, the state election verdict in anticipation of a favourable verdict there. If it actually does materialize is there a possibility that Indian markets might outperform the other emerging markets? 


Marc Faber : I just explained to you that the Indian market is still down 40 percent in dollar terms from the 2008 high; whereas other markets like Indonesia, Thailand, Malaysia and Philippines were up until May by about 4 times from the 2009 lows. So we had an underperformance of India compared to other emerging economies until recently. And we have this pool of international liquidity that is driven by asset allocators, so they look at India - they see a relative poor performance and they see some marginal improvement in the macroeconomic environment of India. So money is flowing out of countries like Indonesia, Philippines, Thailand into India.


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

Marc Faber

In India you either get a Strong Currency and a weak Stock Market or a Weak Currency and the Strong Stock Market

Marc Faber : It is true that the market in local currency is at the relatively elevated level, but not in the US dollar terms. In the US dollar terms, we are still down something like 40% from the peak a few years ago. So I always argue, in India what you get is either a strong currency and a weak stock market or a weak currency and the strong stock market because they adjust to each other. My feeling is that the market may still go up somewhat. I think compared to, say, Chinese ..


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

Marc Faber

In India the Interest Rates to go up rather substantially

Marc Faber :  "...in India they (interest rates) would have to go up rather substantially so that real short-term interest rates would be positive. To do that it's very painful on the economy in the near-term for the next say one year,"

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

India is in a Bear Market

The rupee is down nearly 50% in the last three years. Stock markets are down only 12% to 15% from their peak in rupee terms. Thus, in dollar terms, India is in a bear market as it has fallen nearly 60%. But I don't think the Indian stock markets will fall to that extent in rupee terms.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

India is Underperforming significantly in Dollar Terms

"You cannot blame the Reserve Bank of India entirely for the current situation," he said. "I doubt if India has the political will to face the music,""India is underperforming significantly in dollar terms," - in ET Now
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : I am not very optimistic about India

 Why are you so disappointed with the Indian government?

Marc Faber : I am not very optimistic about India on the macroeconomic front, and it has to do with the government policies. The economic policies of the government are by and large a disaster; the government could have done more. The government in India, through its incredible bureaucracy, has retarded economic growth in the last 20-30 years by at least 3% per annum in real terms. It's a miracle that the Indian economy has performed well, considering the quality of its government. - in ET Now




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

Marc Faber : India Best Market in Asia

 Marc Faber :   If you look at the total pool of money in the world that is floating around, there is little money that has been invested in India. India is a huge country; in terms of population; they will overtake China in a couple of year’s time. The government in India is horrible but it is also horrible elsewhere in the world and that is the problem. So India does not standout as the worst government in the world, others are not much better.
Others maybe better in public relations than in India but they are the same. But at least in India compared to China, you have world class companies that are well run, that have strong growth potential because they have quasi monopolies so they can expand in India in retailing, manufacturing, distribution and pharmaceutical. The markets are not yet saturated, so overall I believe in investing in India. On Christmas I said that I did not increased my positions in any Asian markets except India. At that time it was November-December 2012, and I also increased my position interestingly enough in Iraq because the market in Iraq is very depressed.

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

India Stocks not bottomed yet

We are probably at the beginning of a more significant asset class deflation. If you look back, we had huge increases in asset prices, whether it is real estate, equities, bonds, gold or commodities.

When you print money, prices do not go up evenly and they do not fall all at the same time. So, the money flowed between 1996 and March 2000 into high-tech NASDAQ stocks and also in India. Then this was deflated and post 2000, we had in the US the colossal credit bubble where the money flowed mostly into housing which was deflated after 2007. After that, we had a huge flow of funds into emerging markets and emerging market bonds. I think that will also be deflated as in some cases we have already gone down quite a bit.

In case of India, the Indian ETF is now down 32% from the November 2010 high. It has performed miserably, relatively to the US. So the market will bottom out, but it is too early to buy anything at the present time.

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

MARC FABER not too optimistic about India, & The Rupee could weaken further

Marc Faber says he expects the US Federal Reserve to persist with its policy of pumping liquidity into the economy through bond purchases. He is not too optimistic about India, saying the rupee could weaken further if the twin deficits (fiscal and current account) were not dealt with effectively.
 In a recent interview with CNBC TV 18 : Click here to watch the full interview >>>>


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

Marc Faber: In India, the Rate of Inflation is vastly understated. So in real terms, probably Economic Growth is rather slow

ET Now: The Indian central bank has cut rates. Can monetary easing help kick-start the economy?

 Marc Faber: Basically what the lower interest rates in India might do is to weaken the rupee, and obviously then if the rupee weakens, we might have some inflationary pressures like in other countries. In India, the rate of inflation is vastly understated. So in real terms, probably economic growth is rather slow.  - in a recent interview with ETNOW

Marc Faber : India has numerous problems

ET Now: But one of the concerns for India has been the large current account deficit which is due to higher imports of both gold and crude. What is your sense on these two commodities? Can gold correct more? Should investors be using this weakness to buy?

Marc Faber: I do not know. I would not use this weakness to buy. I rather think that India has numerous problems. One is the fiscal deficit. One is the current account deficit and the combination of the two argues in the long run for a weaker currency. - in a recent interview with ETNOW

Marc Faber outlook for India

Q: How about India which is pretty much in the same kind of description that you outlined which is that macro is weak, fundamentals are not great, but liquidity is keeping stock prices higher. Do you see it continuing that way in the foreseeable future?

Marc Faber : Yes, I think we can also rebound here somewhat. But I would use essentially strength in Asian emerging markets that have actually and India is not in that category, but say Indonesia, Philippines, Thailand have performed very well over the last 12 months. So I would use strength here as an opportunity to lighten up on positions. But it all depends on each individual investor. If someone has all his money in equities I would be aggressive seller at this level and on any rebound and if someone has only 20% in equities I wouldn’t worry about that. My approach is to have a diversified portfolio at this stage. - in CNBC TV18
Click here to watch the full interview >>>>>>>

Marc Faber on The situation in India

Marc Faber : The situation in India is a situation where the fiscal deficit is essentially very high and obviously the government debt is increasing. The rating agencies do their ratings. I don’t pay much attention to that. But obviously although they have a time lag, they probably are in the right direction in terms of downgrading India. - in MoneyControl

We are going to see a Slowdown in India

Marc Faber : All the emerging economies are slowing down, not only India; also the exports are being impaired. We are going to see a slowdown in India in terms of economic activity and this is natural that an economy has phases of rapid growth and then low growth and recession. The government should not intervene in the normal business cycle, but it has always intervened. However, it did not intervene when there was a boom in terms of accumulating savings. So, you have essential asymmetrical monetary policy. - in NDTV 14 Dec 2011