Marc Faber is Accumulating Emerging Markets Stocks

By on January 16, 2012

Marc Faber - Gloom Boom Doom ReportBarron’s Michael Santoli interviewed Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, at the 2012 Barron’s Roundtable conference.

Faber said the Chinese slowdown would have a much larger impact on the emerging world than Europe or the U. S. which have “different problems.”

Faber stated he wasn’t “hyper-optimistic” about the prospects for emerging market stocks over the next 6 months. However, Faber added he had seen a lot of stocks decline by 50% and the Indian market was down 35-40% against the U. S. on a relative basis and value was emerging.

Given this, Faber said his buying program was actually concentrated in emerging economies, although he is only gradually accumulating shares.

Faber said he was able to find a lot of companies in Asia with dividend yields between four and seven percent. He said that the dividend may be cut somewhat, and gave the example of a Singapore REIT, whose dividend could be cut from seven to four percent. He said he would still want to own that because it would be a better long-term investment than a U. S. Treasury yielding less than two percent.

Faber commented further on the Chinese slowdown and its impact on the global economy and commodities.

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