Asset bubble won't burst as long as more money is printed: Faber Sep 09, 2016, 08.50 AM
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In an interview with Business Standard Marc Faber, the author of Gloom, Boom & Doom Report, spoke on how central banks’ asset purchases – which have only increased over time – will impact prices.
Marc Faber (more) Director, Marc Faber Ltd | Moneycontrol Bureau In an interview with Business Standard Marc Faber, the author of Gloom, Boom & Doom Report, spoke on how central banks’ asset purchases – which have only increased over time – will impact prices.
The current asset bubble which is underway, fed by central banks’ liquidity, will last a long time, he contends. As long as more money gets printed ‘continuously’ the bubble won’t burst, he says. Prices of assets will increase, which will result in a bull market.
One of the fallouts of this bubble is that the value of paper will depreciate, he said. Printing money will help the world shift into 'state-ownership, socialism and communism,' he said. Britain is not important in the global scheme of things, said Faber, who goes on to add that growth rates in India and China will hold key.
“If India gets its act together, then it could have a growth rate of maybe 5 percent per annum.' In order for India to make a mark on the global scene, businesses here will have to be more liberalised and government should intervene less, he said.
Of course, industrial production and corporate profits also matter for investors eyeing India in a big way, he said. He finds that in India the asset prices aren’t quite as inflated as in other countries where negative rates prevail.
Faber sees the Indian domestic story playing out well in future. He believes that the precious metals will fall less than equities.
Small investors in India can chance their arm in an 'inefficient market' and make money, he said. He doesn’t see the US Fed hiking rates in September, not before the Presidential election in November.
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In an interview with Business Standard Marc Faber, the author of Gloom, Boom & Doom Report, spoke on how central banks’ asset purchases – which have only increased over time – will impact prices.
Marc Faber (more) Director, Marc Faber Ltd | Moneycontrol Bureau In an interview with Business Standard Marc Faber, the author of Gloom, Boom & Doom Report, spoke on how central banks’ asset purchases – which have only increased over time – will impact prices.
The current asset bubble which is underway, fed by central banks’ liquidity, will last a long time, he contends. As long as more money gets printed ‘continuously’ the bubble won’t burst, he says. Prices of assets will increase, which will result in a bull market.
One of the fallouts of this bubble is that the value of paper will depreciate, he said. Printing money will help the world shift into 'state-ownership, socialism and communism,' he said. Britain is not important in the global scheme of things, said Faber, who goes on to add that growth rates in India and China will hold key.
“If India gets its act together, then it could have a growth rate of maybe 5 percent per annum.' In order for India to make a mark on the global scene, businesses here will have to be more liberalised and government should intervene less, he said.
Of course, industrial production and corporate profits also matter for investors eyeing India in a big way, he said. He finds that in India the asset prices aren’t quite as inflated as in other countries where negative rates prevail.
Faber sees the Indian domestic story playing out well in future. He believes that the precious metals will fall less than equities.
Small investors in India can chance their arm in an 'inefficient market' and make money, he said. He doesn’t see the US Fed hiking rates in September, not before the Presidential election in November.
