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Get ready for euro zone break-up - Faber

Wednesday, October 24, 2012 - 04:35

Oct. 24 - Veteran investor Marc Faber predicts some countries will have to leave the euro zone within five years and warns the S&P could plummet 20 percent from its recent highs in 2013.

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I'm joined here in on Wednesday it still to mock pop up -- his hand publish that could mean dean and bring you reports mark thank you very much for joining us now. I'm quite looking towards the end and -- yeah -- you seeing. Could do more being should be such intensity he was he a year and rally or for that given the risk of a fiscal plan. Well I think that the markets have peaked out -- the and that -- they will be kinda roughly 20%. But it's not going to be in a straight line. So are looking for kind of a low end of October early November and then a year end rally but no new highs and then. Some more damage in 2013. Come out they say is hot spots here in Europe that are really troubling ambassador is right now Spain Greece looking very vulnerable. How real do you see the possibility of the year ranked top. Well it's a possibility is that political decision the politicians they want to keep it to get her. -- -- when you would cost that question properly to determine public do you want to pay for the Spaniards for the Greeks. And of course they would say no. But -- the questions are met and never cost in the proper context. They'll always that. Say that needs that these austerity if there Euro zone breaks up and divorced so I think that need to -- to get a for the time being. But -- in two or three years or five years time probably. They'll be some countries that will have to exceed. How about if we if we knew if states hi how are you seeing the US right now -- -- recovering do you think we'll see. Any help from the Fed for the -- Well I -- got -- this way basically. Any economy. Is not. Are managed by fiscal and monetary policies in the long run. He can happening -- short term. And that the sings there goes in 2009. DS and he has reason. From 666. To over fourteen. 14100. And we peaked after 1470. -- now are 1410 today. So we have a huge rally because of Q we won two and three. And so forth and the markets have an -- largely discounted further easing moves by the central banks. If -- come around the rest of the wild wet. Plan right now it's looking -- attracts you from an investment suspect. Where -- this is the difference between economic activity and markets I have four months ago I think that the European markets such as it can be spraying. Prongs. Greece -- in doubt. And that sings then they -- rally between said he descend. And in the case of Greece 65%. From the lows I don't think will make new votes. In Asia I think that Japanese market looks relatively attractive and the Chinese market. Because this Chinese Google's -- eventually. So these markets have underperformed other markets very badly. And they may have some. -- -- feet from the re allocation of money from the base performing markets the Philippines Indonesia. Thailand into these markets that haven't moved yet. And just softly. Let's sit tools next yet found. What are you seeing -- heading -- pets did do you think when I see twenty -- year economic growth or stagnation. I think in general. People underestimate. How weak the Chinese economy's. I don't think they're who'd be knocked over recovery in the US. And I think Europe will continue to be recession. So economically. I think he had the outlook is not particularly favorable. The outlook for corporate -- these negative. So I look for these correctional 20% but as I said in between them the rallies but safe from the recent -- Do demos. Sometimes next year. We could easily dropped 20% 20% is nothing. Okay thank you very much so leave it right. I was not father's outlet for twenty Maxine -- 10 AM in London and this is salacious.

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Get ready for euro zone break-up - Faber

Wednesday, October 24, 2012 - 04:35