Business Standard's Puneet Wadhwa talks to Marc Faber, editor and publisher of 'The Gloom, Boom & Doom Report' on how investors should approach the markets next year and his investment strategies
 "Marc Faber's take on the approach to financial markets next year")
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Q: It has been all boom in the global equity markets for the most part of 2021. Will they perform with the same enthusiasm in 2022 as well?
>> Enthusiasm of investors will not vanish overnight; in India it will stay high for a while
>> Indian economy still expanding despite headwinds; can outperform the world
>> Globally, we need a market correction
>> Too much optimism among investors, especially those who do not have experience
Q: Equities, commodities, cryptos, inflation – everything is on a rise. Will it all end badly for the investors in a year or two from now?
>> Value stocks have underperformed across the globe
>> FANG, FANG-related stocks, stocks like Tesla and semiconductor stocks did well in the US
>> Market and hedge fund favourite will underperform; money will shift to value stocks
>> Europe and Asia will outperform the US in 2022
Q: What has been your investment strategy in the past one year?
>> My strategy has been to diversify.
>> Do not wish to make speculative gains; own value stocks
>> Also prefer dividend stocks – own utilities in Europe, banks in Asia and tobacco companies
>> Own resource companies as commodity prices will not likely collapse
>> Have real estate around the world, precious metals and fixed income securities
Q: Do you own any Indian securities in your portfolio?
>> Own some bonds of Indian companies in my portfolio; have held Indian ETFs.
>> No exposure in India as of now
>> Indian markets are fundamentally sound, but expensive
>> Find more value in other Asian markets
Q: So, which markets would these be?
>> Indonesia, Malaysia, Hong Kong and Singapore
Q: What’s your advice to investors? How should they approach equity markets in 2022, especially in India?
>> Perseveration of is capital more important now than doubling money
>> For someone who wants to invest for the future or his family, diversification is necessary
>> Diversify across asset classes – equities, gold, real estate, fixed income, commodities and even cryptocurrency
>> Diversification also means investing in overseas markets
>> Enthusiasm of investors will not vanish overnight; in India it will stay high for a while
>> Indian economy still expanding despite headwinds; can outperform the world
>> Globally, we need a market correction
>> Too much optimism among investors, especially those who do not have experience
Q: Equities, commodities, cryptos, inflation – everything is on a rise. Will it all end badly for the investors in a year or two from now?
>> Value stocks have underperformed across the globe
>> FANG, FANG-related stocks, stocks like Tesla and semiconductor stocks did well in the US
>> Market and hedge fund favourite will underperform; money will shift to value stocks
>> Europe and Asia will outperform the US in 2022
Q: What has been your investment strategy in the past one year?
>> My strategy has been to diversify.
>> Do not wish to make speculative gains; own value stocks
>> Also prefer dividend stocks – own utilities in Europe, banks in Asia and tobacco companies
>> Own resource companies as commodity prices will not likely collapse
>> Have real estate around the world, precious metals and fixed income securities
Q: Do you own any Indian securities in your portfolio?
>> Own some bonds of Indian companies in my portfolio; have held Indian ETFs.
>> No exposure in India as of now
>> Indian markets are fundamentally sound, but expensive
>> Find more value in other Asian markets
Q: So, which markets would these be?
>> Indonesia, Malaysia, Hong Kong and Singapore
Q: What’s your advice to investors? How should they approach equity markets in 2022, especially in India?
>> Perseveration of is capital more important now than doubling money
>> For someone who wants to invest for the future or his family, diversification is necessary
>> Diversify across asset classes – equities, gold, real estate, fixed income, commodities and even cryptocurrency
>> Diversification also means investing in overseas markets
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First Published: Dec 13 2021 | 8:00 AM IST