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Over dozens of charts, Dr. Faber showed that while growth in the West is slowing, Asia is growing at a tremendous rate.
Dr. Faber is nicknamed “Dr. Doom” for his contrarian and bearish predictions. He warned clients to cash out before the Black Monday stock market crash in 1987, and helped clients profit handsomely as the Japanese stock bubble burst.
Dr. Faber recommends Indian stocks, real estate, bonds and commodities (with an emphasis on precious metals). Over the long run, they should all do very well.
Specifically, Dr. Faber said he’d wait for the current correction in Indian stocks to take its course, before investing. He particularly likes financial service stocks.
Dr. Faber offered two caveats to his prediction…
First is India’s growing and bureaucratic government. Dr. Faber said that “government is a cancer”, the smaller it is the better. He does, however, think the RBI is doing a “wonderful job” as a steward for the Indian economy, which is rare among central banks.
Second, India’s rise depends on peace and stability in the region. The USA, who won’t cede dominance easily, could play the role of “troublemaker” in the east. The USA has tens of thousands of troops spread around Asia.
If both these threats can be avoided, “India has the healthiest demographics in the world”, and the long-term future of the country is incredibly prosperous.