Which economies within the emerging market pack look more attractive and why?
Marc Faber : I am not yet sure what I will buy. As mentioned earlier, I would prefer to wait and see how economic developments and policies shape up. In fact, investors should pay much more attention to the economic developments in China rather than focus on what Ben Bernanke says.
My sense is if the Chinese economy slows down, the whole of Asia will slow down very meaningfully. Besides, other emerging economies that supply resources to China will also be severely impacted.
So overall, between the EM pack and the developed world, which economies would you bet on from a 6 – 12 month perspective?
Well relatively speaking, I think that the US may outperform the EM pack but it doesn’t imply that the US will go up. It may actually go down less than the EMs. I prefer to hold cash and will invest in EM economies only if there is a good opportunity. -
Interview of Sprott Management News
