Marc Faber commented the world events and here are the highlights:
CREDIT MARKETS
- credit markets have improved somewhat;
- Government Bonds will be downgraded in 2009 or 2010;
- LQD, the corporate bonds US ETF dropped to 75 and then made a huge rally to over 100; corporate bonds have already rallied;
STOCKS
- S&P 500 has rallied from 741 to 943 and then corrected somewhat; might rally some more in the next couple of months;
- Second Half of 2009 (2H09): May be even worse than the first half; people hope it will be better; Stocks may be under pressure;
- At 800-850 the S&P 500 is not unexpensive;
WHERE TO FIND VALUE?
- Japan stock market is trading at the 1981 level;
- South Korea and Taiwan are trading at 1987 levels;
- Look for value in Asia;
- Dividends Yields in Asia are 3 to 4 times higher than Bond Yields;
COMMODITIES
- Oversold markets, and major lows in commodities prices;
- When the economy recovers, commodities will rally strongly because new supply has all but stopped;
BONDS
- Who will buy a 30 Year Government Bond with a less than 3% Yield?
- I see no deflation in Consumer Prices, only in Asset Prices;
WHAT TO BUY
- dollar may continue to strenghen;
- Markets may rally a bit further;
- Asian Stocks;
Track Marc Faber investment decisions, stock picking and trading here on the Marc Faber Blog. Links to the full video interviews by Marc Faber:
VIDEO INTERVIEW 1
VIDEO INTERVIEW 2
