Frequent market commentator and publisher of the Boom Gloom and Doom, Report Dr. Marc Faber, recently sat down with CNBC to share his end of year and post election market outlook.
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Providing a nice juxtaposition to the article we recently posted “Is the BRICS Era Ending” (link here) in which we document the slowing long term economic growth rates and currency troubles among the BRICS countries, Dr. Faber reminds us that many emerging market stocks markets have nonetheless had a strong 2016.
Dr. Faber notes “The market is up 8% and Goldman Sachs, precisely the people he (Trump) attacked, Wall Street, is up 55%. Emerging markets have somewhat under preformed but I would just like to make the comment that many markets have outperformed the US. Russia in dollar terms… is up 51%, Brazil 64%, Kazakhstan 66%, Thailand 19%, Indonesia 19%, Vietnam 13% Karachi 40% and so to say that emerging markets are a disaster is not quite correct”
“Many people are saying well the election of Trump is an event like the election of Ronald Reagan in 1980, November 1980. The market soared until november 28th and then went down for two years by more then 20% until the low in 1982 and at that time assets were very low and the other president that had a huge rally when he got election was Herbert Hoover in 1929. The market went up until August and then collapsed into October and we had a depression. So we have to be very careful in saying this is all great.”
Enjoy the full interview below:
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