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

Money in US Bonds is not 100% Safe

Marc Faber : "There is no safe haven. Bank deposits are not safe, which used to be safe. Money in treasury bills is not 100% safe because there is inflation in the system and you hardly get any interest. Bonds are not very safe anymore because eventually interest rates will go up. Equities in the US are relatively expensive by any valuation metrics you might use. I don't see anything particularly safe. The best you can hope for is that you have a diversified portfolio of different assets and that they don't all collapse at the same time."- in Bloomberg  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.

Money not Safe in The Banks

 TGR: What is the safest and easiest way for investors in North America to get exposure to emerging markets?

Marc Faber : Investors can buy exchange-traded funds (ETFs). That said, I am not in favor of ETFs, but that is one way into emerging economies. Face it: it's never easy to make money. If a person wants to make easy money, then he or she should not be in the stock market. It is very difficult to make money in stocks, because people tend not to diversify. They tend to buy popular stocks, such as Apple. And they sell stocks that are temporarily out of favor, such as mining stocks at the present time. They buy high and sell low. Not a recipe for success.
And what is safe? Traditionally, money in the bank is safe. But, as we've seen in Cyprus, it's not so safe, because the deposit earns zero interest, while the cost of living increases between 5% and 10% per annum. Money left in the bank loses purchasing power.   - in The Gold Report

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

It is Never Easy to Make Money

 TGR: What is the safest and easiest way for investors in North America to get exposure to emerging markets?


Marc Faber : Investors can buy exchange-traded funds (ETFs). That said, I am not in favor of ETFs, but that is one way into emerging economies. Face it: it's never easy to make money. If a person wants to make easy money, then he or she should not be in the stock market. It is very difficult to make money in stocks, because people tend not to diversify. They tend to buy popular stocks, such as Apple. And they sell stocks that are temporarily out of favor, such as mining stocks at the present time. They buy high and sell low. Not a recipe for success.
And what is safe? Traditionally, money in the bank is safe. But, as we've seen in Cyprus, it's not so safe, because the deposit earns zero interest, while the cost of living increases between 5% and 10% per annum. Money left in the bank loses purchasing power.


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