On why the US has a trade deficit
“Trump is surrounded by number of economists and they think that American trade deficit [is] relative, relative decline of American labour force is due to import China. The import from China is symptoms of having become less competitive. Capital spending in U.S. has been low for 20-30 years. Economists have always argued to boost consumption in order to stimulate the economy. Obviously, one of the consequences of this is the growing trade deficit.”
Thursday, August 30, 2018
Tuesday, August 28, 2018
Buying opportunities in Turkish assets
The recent sell off in Turkish stocks may have presented a buying opportunity for Bulls according to Marc Faber who spoke with Anadolu Agency.
“People always say they would like to buy low and sell high. Turkish stocks are valued in U.S. dollars. Now it’s in buying range. I think I will buy some Turkish stocks, ETF’s. I own some [Turkish] bonds. It’s not the huge portion of my portfolio but yes I own some Turkish debts. I think it’s the time to buy Turkish assets."
“People always say they would like to buy low and sell high. Turkish stocks are valued in U.S. dollars. Now it’s in buying range. I think I will buy some Turkish stocks, ETF’s. I own some [Turkish] bonds. It’s not the huge portion of my portfolio but yes I own some Turkish debts. I think it’s the time to buy Turkish assets."
Monday, August 13, 2018
Marc Faber on the possibility of stock market prices adjusting downwards
Marc Faber reflects in his latest Gloomboomdoom post on the possibility of stock market prices adjusting downwards
"If in an economic system prices in one or several sectors increase over an extended period of time far more than the overall price level, a reversion to the mean will sooner or later take place. The adjustment in prices can take place in two different ways. Prices in the inflated sector can stagnate for a while or increase more slowly than the overall price level.
Another possibility which is more likely is that grossly inflated sectors and assets revert to the mean by crashing altogether.
I believe that stock markets around the world are at an important crossroad: Growth (represented by the NASDAQ 100) is out and Value (real estate, REITs, Telecoms, food, consumer staples, financials, and energy (as represented by the Russell 1000 Value ETF – IWD) is beginning to outperform."
"If in an economic system prices in one or several sectors increase over an extended period of time far more than the overall price level, a reversion to the mean will sooner or later take place. The adjustment in prices can take place in two different ways. Prices in the inflated sector can stagnate for a while or increase more slowly than the overall price level.
Another possibility which is more likely is that grossly inflated sectors and assets revert to the mean by crashing altogether.
I believe that stock markets around the world are at an important crossroad: Growth (represented by the NASDAQ 100) is out and Value (real estate, REITs, Telecoms, food, consumer staples, financials, and energy (as represented by the Russell 1000 Value ETF – IWD) is beginning to outperform."
Tuesday, August 7, 2018
A Trade War now would be a mistake. Global economy is slowing.
The US may be losing its importance in the Global economy according to Marc Faber who spoke to RT news.
"The US as an empire against the rest of the world peaked in 1950s or 1960s. Then, there have been other countries that have become more powerful, in particular China and now increasingly India. The US empire and its influence on the world is diminishing and has been diminishing for quite some time."
Who would benefit from a US Trade War.
“The winners in a real trade war would be everyone except the US. The Europeans would trade more with Asia, and the Asians would trade more with Europe than the US. There would be more trade between the emerging economies and China and vice versa."
"The US as an empire against the rest of the world peaked in 1950s or 1960s. Then, there have been other countries that have become more powerful, in particular China and now increasingly India. The US empire and its influence on the world is diminishing and has been diminishing for quite some time."
Who would benefit from a US Trade War.
“The winners in a real trade war would be everyone except the US. The Europeans would trade more with Asia, and the Asians would trade more with Europe than the US. There would be more trade between the emerging economies and China and vice versa."