China and other emerging markets offer value over the next two years as growth picks up Marc Faber told Bloomberg.
“Rapidly growing countries have setbacks from time to time”
“I think we’re going to test the lows again, but over the next two years, it’s probably a good time to invest.”
Commodities
“Asset markets have already discounted a lot of the bad economic news,” he said. “ Some assets like commodities are very, very inexpensive.”
Stocks
Stock markets are “not particularly expensive” and investors should consider buying them in anticipation of a recovery, Faber advised. The MSCI global index is valued at 11 times reported earnings, half its 10-year average multiple of 22.
“We also have a lot of equities that are not particularly expensive because they’ve collapsed,” Faber said. “These are relatively sound companies and whenever the recovery will come, they will be in a strong position.”
Dividends In Asia
“In some of these markets, the dividend yield is three times higher than the bond yield,” Marc Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview today. “Dividends will be cut at least 50 percent across the board but at least you get paid to wait” until a recovery in the stock prices.
Sources:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aBJGJRCXq6Yo&refer=home
http://www.bloomberg.com/apps/news?pid=20601087&sid=aW5uNAKVJAmY&refer=home
{ 0 comments… add one now }