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Marc Faber, the legendary contrarian investor, has painted a grim picture for major global stock markets, warning that recovery looks unlikely. For retail investors including those in India,
he suggests a sharp exit at the first sign of a temporary rebound, calling it the best available move in turbulent times.
The 79-year-old analyst, who is the editor of the Gloom, Boom & Doom Report, advised Indian investors to consider precious metals as a safeguard, predicting that the rupee would lose ground
against the rising value of gold, silver and platinum.
"If the market rebounds, then get out," Faber advised bluntly on Wednesday in a televised interview with NDTV Profit, when asked about his recommendation for Indian retail investors.
Faber also warned that global bear markets could drag on for ‘several years.’ While inflation might create the illusion of higher returns, he argues that the real value would keep eroding
beneath the surface.
He suggested that last year’s market rally in the US and India was fuelled by retail investors eagerly pouring their savings into stocks, often without contemplation. “Last summer, there was
high participation of retail investors in the US market. The same happened in India... Many of these investors have no clue.”
Faber underscored that the global frenzy of speculative trading funnelled straight into AI chipmaker Nvidia, Elon Musk’s EV giant Tesla and the king of cryptocurrencies, Bitcoin. But now, he
warns, the tide is turning. Over the past couple of months, the once-soaring stocks have stumbled, with Tesla plunging over 30%, Nvidia down more than 17%, and Bitcoin slipping 13% in just
the last 30 days.
Reportedly, he remarked that retail investors have suffered colossal losses in the last two months. He added that the pain has been just as severe in India. He doesn’t see a turnaround for
major equity markets anytime soon, predicting years of stagnation. Comparing the US stock market to the real economy, he called it ‘the biggest bubble in history.’
Reportedly, the recently seen gold rush isn’t just about glitter is driven by uncertainty, with safe-haven buying taking centre stage as investors hedge against the unpredictability of
Trump’s policies.