Marc Faber Says This Should Terrify Investors Everywhere
U.S. equities are now fully priced and we could be heading for a stock market crash in 2016. At least, that’s the opinion of famed market commentator Marc Faber.
Speaking in an interview with CNBC on Wednesday, the editor of the Gloom, Boom, & Doom Report said the U.S. stock market is overheated and now might be the right time to move investments abroad in regions with promising growth. (Source: “Dr Doom Marc Faber: ‘I’m a great optimist,’” CNBC, October 23, 2015.)
When asked about what he’s the gloomiest about, he mentioned the struggling corporate earnings of U.S. companies like Wal-Mart, Tesla, Yum!, IBM, and Harley Davidson and held the weakening global economy responsible for their troubles. He says central banks are resorting to quantitative easing (QE) to trigger growth. Indeed, as the ECB cut rates on Wednesday, the following day China came out with the same strategy.
Faber is of the view that the Indochina region is expected to grow by over six percent and might be the right place to invest in right now. When asked how he’d like to invest in this region, he said both in the equity markets and in real estate.
Faber went on to say that gold has become the next best alternative for investment, after equities. Equity investment, according to him, has become overly risky this year because of unpredictable and volatile price oscillations.
You can watch the full interview here.