Alternative Market Briefing

Marc Faber: Hedge fund managers could take advantage of increased volatility in markets

Monday, September 17, 2012

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Marc Faber From Precy Dumlao, Opalesque Asia – Swiss-born economist Marc Faber, author of the Gloom Boom & Doom Report, has painted a bullish picture on hedge funds and China and European stocks, it was reported.

Speaking during a hedge fund managers’ forum in Hong Kong, Faber declared, "I think China stocks are quite a good buy," and added that he also sees opportunities on European stocks, which he has been buying for about four months now. "Investors will look back at the European crisis today and think 'we should have bought equities in 2012’," he told his audience, TheGuruInvestor.com reported .

Faber also explained that the current poor performance in the hedge fund industry could be a contrarian indicator. He thinks fund managers could take advantage of increased volatility in markets.

The dwindling holding period in which investors own individual stocks, now at a record low, was among a handful of factors "that leads to volatility like in the 1970s," and this could help put the shine back on fund managers who move in and out of markets, Faber said, according to MarketWatch.com.

He was quoted as saying, "In this environment of negative real interest rates we will have a lot of volatility and there are two strategies you can use. One is to aggressively shift from one asset class to another." The other option is to se......................

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