One of the leading investors Marc Faber has recently focused his interest in buying European stocks. Although the dark predictions about the future of Greece and Spain, contrarian investors like Marc Faber will never miss chance like this. CEO of Marc Faber Ltd and author of the monthly Gloom, Boom & Doom Report, Swiss-born Faber serves as a director or adviser to a number of investment funds, mostly focused on emerging markets.
It is commonly known, that for the most part, Marc has been out of stocks in the world's major countries for many years – since well before the dot-com crash in 2000. Recently on Bloomberg TV, Marc Faber admitted that European stocks are relatively attractive right now. Most European markets peaked out a year ago in May 2011 and are down very substantially. They are approaching or even exceeding the lows of 2009. That gives you many shares of good-quality companies that are yielding 5% to 7%.
He added that now we have record-low interest rates on cash and you're not earning anything in some countries. So, in his opinion European stocks are relatively attractive compared to cash and to bonds. It might seem foolish to some to step up and buy European stocks when Europe is so hated right now. But the opposite is true – this is the right time to consider it. European stocks are incredibly cheap.
For example in Germany Siemens, BASF, SAP, Bayer, Daimler (Mercedes), T-Mobile (Deutsche Telekom), and BMW are major, worldwide businesses and they are not going away, pointed out Faber. In his opinion, if the euro weakens, it will benefit many of these companies because the majority of their costs are in euros, but a significant portion of their sales come in dollars. And the Swiss-born investor thinks that best of all is, thanks to the European crisis, many of these companies are trading at record-cheap values.
Source: http://valueslots.com
Marc Faber is a Swiss investor who serves as director or advisor of a number of investment funds that focus on emerging and frontier markets, including Leopard Capital’s Leopard Cambodia Fund and Leopard Sri Lanka Fund. He has a reputation for being a contrarian investor and has been long term bearish about the American economy.
No comments:
Post a Comment