This is Marc Faber`s comments on the Barron`s Roundtable:
I'm not optimistic about the global economy. The next Madoff case - the next Ponzi scheme - is the U.S. government. It will go bust. It is only a question of time.
ICICI Bank (IBN) and Infosys Technologies (INFY) - Asians might go to casinos and gamble, but in their businesses they are ultra-conservative.
Alcoa (AA), Rio Tinto (RTP), BHP Billiton (BHP), Vale (RIO), Xstrata (XSRAF.PK), Freeport-McMoRan (FCX) - when volatility diminishes, you want to be in cyclical industries. The financial crisis and collapse in commodities prices will keep supplies out of the market, setting up an explosion at some point.
Morgan Stanley India Investment Fund (IIF), iShares MSCI Brazil Index ETF (EWZ), Templeton Russia & Eastern Europe Fund CEF (TRF), Greater China Fund (GCH) iShares Trust FTSE-Xinhua China 25 Index Fund (FXI), and Turkish Investment Fund (TKF) - "in a recovery driven by easy money, zero interest rates and fiscal deficits, emerging markets - the most cyclical part of the global economy - can rebound." Sees 50% upside.
ProShares UltraShort Lehman 20+ Year Treasury ETF (TBT) - the U.S. Treasury market is the short of the century. Could take two years to work out.
Nicholas-Applegate Convertible & Income Fund (NCV) - junk and convertible bonds could rally substantially, led by government buys and copycat private investors.
Intel (INTC), Cisco Systems (CSCO), Yahoo (YHOO), Oracle (ORCL) and Microsoft (MSFT) - will double and even triple before going to zero. You'll do much better with them than with Treasurys.
