From the SCMP: It’s always good value listening to the
thoughts of Marc Faber, otherwise known as Dr Doom. The eternally bearish
investment guru can always be relied on to pour cold water on market
exuberance, no matter how buoyant things might look.
He notes the S & P 500 is getting very close to the
all-time high of 1565, but he’s not big on equities full stop. “If you look back at equity performance over
the last 15 years, it has not been good. The Dow hit 1100 in March of 1999 and
we’re only getting close to 1,4000 now,” he reminded RTHK listeners. In fact, equities have done miserably in the
last 15 years, he concluded. So isn’t it about time that they are the place to
be? Not really, he said, pointing out that the Dow Jones and S & P Stock
performance, dividends included, averages out at a pretty unexciting 6 per cent
per annum.
When you print money, he sighs, it tends to go to the people
closest to it, so the rich guys get this money at the expense of people at the
lower end. But he doesn’t think we’re anywhere near the 16th or 3rd centuries
where massive social upheaval erupted. But when food prices go up, you get more
social problems. Not so much for the partner at Goldman Sachs because as a
percentage of his total income food expenditure is maybe 3 per cent, “unless he
is a heavy cocaine user.” But in India people
spend 50 to 60 per cent of their income on food, so when food prices rise, it
hurts the lower income recipients most….
‘
Wait, wait..there’s more at http://www.scmp.com/comment/blogs/article/1140044/dr-doom-and-gloom-makes-his-investment-predictions-2013
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