Marc Faber's take on the approach to financial markets next year

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Marc Faber's take on the approach to financial markets next year 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

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