Marc Faber appears on CNBC’s Fast Money on March 6, 2009 to discuss investment ideas during the current economic crisis.
The question is, when will the money printing by the various Â central banks around the world lead to asset market recoveries and which asset markets will go up the most. If I look at equities in Asia and the US and commodities – commodities are very cheap in real terms – we are at new lows.
I would say that some resource related equities are very cheap in the resources in general – indsutrial commodities.
Oil servicing companies should do OK.I think that oil exploration will slow down because of low prices. Eventually the low prices will lead to higher prices and then again, exploration. We shouldn’t forget that oil has a huge geo-political aftertone in the sense that a country like China or the US needs oil and they need to become less dependent on the Middle East.
America, if it were cheap, the stock market would be at the level of 1990 – the S&P would be at 300.
There are ‘cheap’ deals to be found around the world. Some companies, especially those that service oil and other energy commodities, agriculture and mining are trading at Price to Earnings ratios of 5.0 to 10.0. In the US, some companies may still be overvalued, as we have a ways to go before the bottom, but looking internationally at major players in these commodity hard asset producers, there may be some investments with significant upside potential.