Tags: faber | china | european | stocks

Faber Pessimistic on China, Favors European Stocks

Monday, 13 Aug 2012 12:25 PM

China’s economy will slow “considerably,” said Marc Faber, the publisher of the Gloom Boom & Doom report, who is buying European stocks.

“The growth rate we had in the last 10 years, which was around 10 percent annually, is going to slow down considerably,” Faber told Tom Keene and Ken Prewitt in a “Bloomberg Surveillance” radio interview Monday. “I would rather wait to buy Chinese stocks until we see the result of the stimulus packages.”

The Shanghai Composite Index has tumbled 13 percent from this year’s high reached March 2 on concern the economic slowdown is deepening. The gauge fell 1.5 percent Monday after Bank of America Corp. joined Deutsche Bank AG and Barclays Plc in cutting growth forecasts for China on weaker exports.

Faber is buying European stocks as declines related to concern the euro may break up create opportunities for investors.

“For the first time in my life, I’ve started to buy some European stocks, and I will buy more over time,” Faber said. “Equities have become inexpensive.”

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