The market has altered downwards and we are in a purchasing range. It does not matter even if India develops at 5% or 7% per annum but if think about the coming 10 years, you could simply anticipate an economy that grows all over on an average between 4 and 7% per annum, which is very a high growth rate.
I assume that earnings ultimately track the “GDP growth”. Presently, the estimations in India are satisfactory. But I have one thing to add. Just couple of years back, indexing has gained the tag of “new trend” around the world. Ample amount of money is been invested in a submissive way in ETFs—who are interested in buying index.
If we consider 2016, a huge difference can be seen in the achievements of distinct sectors in the United States—the gold shares being the best performing sector. Apart from it, energy sector performed best while biotechnology performed the worst. The world is again shifting toward “stock pickers’ era” wherein people give their best performance provided they are in the appropriate sector.
In the present year, some of the stocks related to the commodity will be of high interest; specifically the stocks including gas and oil. I have observed agricultural, fertilizer, and plantation companies to be the most interesting sectors. They have noteworthy future as prices have been very uncertain for agricultural commodity since 2011. These agricultural commodity prices will thus lead the game and put behind others resulting in increasing prices.
So this is what Marc Faber has to say about Indian economy. What are your opinions regarding the same? Feel free to share your thoughts.
Investment guru Marc Faber warns savvy investors to buy European shares amid a looming U.S. market tumble.
“I would buy European stocks,” Faber told Fox Business Network. He said the U.S. market is “completely out of range” with the other world markets.
“Investors should understand that markets can also go down and it would not surprise me to see the inflated asset markets especially the financial markets being down 20 to 40 percent at some point,” the publisher of the Gloom, Boom & Doom report predicted.
Faber doesn’t believe all the media hype surrounding the raging bull stock market since Donald Trump won the election.
“ I think there will be a closing of this diverging performance with either Europe outperforming the U.S. or both going down or the U.S. going down more,” he told the Fox Business Network’s Charles Payne.
However, other business icons are much more optimistic.
Steve Forbes, chairman and editor-in-chief of Forbes Media, recently told Newsmax TV that he is optimistic that stocks have room to reach new records as President Donald Trump pushes forward with his pledge to cut taxes and regulation.
“Markets always try to anticipate the future. One of the reasons it had such a big surge since the election, especially small-cap stocks, is in anticipation of deregulation which the president started and I think he's going to follow through on that,” Forbes told Steve Malzberg on Newsmax TV's "America Talks Live."
Marc Faber the author of The Gloom, Boom & Doom Report, is of the view that India will outperform the US over a 5-10 year period. In a conversation with ET Now Faber said, “India has done very well in 2017 and is grossly outperforming the US. Even if India grows at only 5%, it is still better than the US, Europe”. Citing a PwC report he said, India would be the second largest economy by 2050. “Outlook for the Chinese, Indian economy for emerging markets, in general, is far superior to the outlook in our rotten western democracies,” he told the business news channel.
He also suggested in investing into commodity stocks given the low prices of commodities. Marc Faber preferred to invest in commodity-related plays over financial assets. However, Faber cautioned that each commodity has to be analyzed separately. He also pointed out to a positive outlook for copper, as he said that the shift to electric cars will increase demand for the metal. Among other stocks, Marc Faber named real estate, travel & tourism and hotels as the sectors he likes. He said he sees a huge opportunity in real estate on the trend of buying 2nd homes, and added that domestic and international tourism will bring potential for hotel chains, travel companies.
Earlier this year, Marc Faber has suggested that the newly-elected US President Donald Trump’s policies are rather good for the emerging markets, contrary to the popular sentiment that such policies will restrict trade from the emerging economies and hurt them. “Everyone makes a big hoopla on the US markets going up this year,” Marc Faber had said in a TV interview to CNBC’s Squawk Box. “We are up 4.66%, (while) Hong Kong is up 9%, Singapore is up 9%, Mexico is up 6%, and Brazil and Argentina are up 20%,” he had said to drive home the point that Trump’s policies were “quite good” for the foreign markets.
History shows that the initial bump in markets might not stick around in the longer term, says Marc Faber, editor of The Gloom, Boom & Doom Report.
Marc Faber, The Gloom, Boom & Doom Report, and Frank Berlage, Multilateral Partners Global Advisory, look at risks lurking in the markets.
Marc Faber, the editor and publisher of “The Gloom, Boom & Doom Report,” speaks to Brian Sullivan.
