Marc Faber of the Gloom, Boom and Doom Report expects the Fed to increase its asset pur…

SHOWS: SINGAPORE (NOVEMBER 7, 2013) (REUTERS – ACCESS ALL)
MARC FABER, EDITOR & PUBLISHER OF THE GLOOM, BOOM & DOOM REPORT
1. (QUESTION GRAPHIC)
“What do you expect from China’s Third Plenum?”
2. MARC FABER SAYING:
“Xi Jinping is a great admirer of Mao Zedong. If you look at the history of Mao Zedong, it’s not exactly – he wasn’t exactly a benevolent dictator. And I think that they want to reform part of the economy but they also want to clean up the system of some people that may not be friendly to them. That may create some tensions in the political tensions.”
3. (QUESTION GRAPHIC)
“You have said that you do not expect the Fed to taper at all. Do you still hold that view?”
4. MARC FABER SAYING:
“Well basically we will have in next year a new Fed chairman, Janet Yellen, and she may decide as Fed chairman in order to gain some credibility to kind of implement a cosmetic tapering that will be say, ten billion a month or twenty billion a month, but in general I think that overtime, the asset purchases by the Fed will not be reduced, but actually increased.”
5. (QUESTION GRAPHIC)
“If the Fed does not taper, Asian equities will likely continue to attract strong fund flows. Could that lead to the formation of asset bubbles?”
6. MARC FABER SAYING:
“Well, I mean it’s very difficult to say whether we had asset bubbles here in Asia in terms of equities because yes, since 2009, since the lows, equity prices like countries like Malaysia, Indonesia, the Philippines, Thailand, and even Singapore have risen significantly. But the economic prospects have also been quite favorable. And if I look these economies, then I have to say that for most shares, the valuations are not that high compared to zero interest rates, which you get in the banks. So say I can buy Malaysian shares, or Singapore shares, or Thai shares and have on my portfolio dividend yield of say five percent. So compare that to government bonds in the U.S., or to Singapore government bonds, so cash in the bank, I …