Marc Faber - Wheat at 200 Year Low

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The dollar has been very weak, but the other currencies aren't much better. All of the central bankers are big money printers. If you are a European or a Swiss, you might decide to shift some money into gold. In foreign exchange reserves, the nominal value has gone up 7 times, but gold hasn't gone up that much. India has a relatively well run central bank.

To make a good investment choice in India, you would need to talk to a stock picker in India. The banks there are relatively sound. hey didn't get involved in all the mortgage derivatives. A great many people in India don't have bank accounts. More of them will, so there will be a lot of opportunities for banks. There will be entire new cities springing up, so Indian real estate is very interesting, whether it is commercial and residential.

In Hong Kong, there are rich billionaires who are pretty conservative they only have 20% leverage, 80% equity, and that has allowed them to remain strong even as all asset classes fell.

The purpose of a crisis is to clean the system. By supporting any company, you are supporting the weak participants. When the weak are eliminated, they learn a lesson that they won't repeat. In 2008, the well managed companies could become strong players in the future since they have more cash flow.

In real terms, wheat is at a 200 year low. Natural gas is also very cheap. However, it isn't easy for an average investor to play these commodities.

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[jayangli]

most properties have no mortgages in h.k. hm that cant be right. lol

[jayangli]

@WowzaGuy wheat is food so there would be a shortage

[WowzaGuy]

When you buy something at a 200 year low, you may have to wait 50 yrs +/- 50 to see a rebound!