Marc Faber’s outlook is predictably bearish.
The renowned global investor and author of The Gloom, Boom & Doom report believe that investors would make more money in Emerging Markets than in the US over the next few years.
“If you are a prudent investor, then you are not going to make a lot of money in equities over the next three years” said Marc Faber in an interview with ET Markets.
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“If you are a prudent investor, then you are not going to make a lot of money in equities over the next three years”
Marc Faber’s outlook is particularly optimistic for precious metals
The long-time gold bug is recommending investors to start accumulating gold from a long-term perspective amid global growth concerns and heightened trade tensions. Faber is forecasting gold price to rise about 20 percent over the next 2-3 years.
“Gold is not an industrial commodity and it does not depend on demand from China. It depends on investor sentiment towards gold and central banks’ monetary policies. If they print money, then it is likely that the price of the yellow metal will go up in the long run, while in the short run, it does not have much of a correlation” said Marc Faber. He believes that the commodity has bottomed out.
Marc Faber’s outlook for commodities is not upbeat
Outside precious metals Marc Faber said most of the commodities do not have a structural bull market. The commodity supercycle could be well in the rear mirror.
“Gold is not an industrial commodity and it does not depend on demand from China”
Marc Faber’s outlook concerning the ongoing US-Chian trade war is somewhat bearish
“No one is a winner in the trade war and investors need to pay attention to worsening geopolitical tensions” he said.
Good investing is about a good time, according to Marc Faber.
“Timing is very important if you invest in commodities” Marc Faber said and added that he is also bullish on agricultural commodities including soybean, corn, wheat, and coffee.
“Trade war will hinder economic growth” – Marc Faber
Marc Faber’s outlook for China is upbeat in the long run
Despite the US_china trade war, Marc Faber believes that China will emerge stronger.
“Trade war will hinder economic growth” he said. But in the long-run trade tension will be “favorable for China.” It will strengthen trade along the new Silk Road and accelerate the de-dollarisation as global trading partners look towards another global interface currency to conduct their trade.
Marc Faber points to India and China are argues that the two of the world’s most populous countries would grow with a proviso of peace.
Conflictive conditions are negative for markets, according to Marc Faber’s outlook
He highlighted that war-like conditions have always ended very badly for financial markets because they lead to a lot of defaults, which has the potential of spreading.
Marc Faber’s outlook concerning the secular bull run in USD is that it has ended
19 other central banks have already cut policy rates. With the Fed cutting rates, Faber expects the US dollar to be weaker over the next two years.