Continued with Economic Times Interview:
ET Now: So what is the bigger risk to the risk-on rally? Will it be China or credit bubble in Japan or a real estate bubble in Asian markets?
Marc Faber: The risk for me globally is really European banks and financial institutions and a market that is already quite high. We are not at the 2009 lows. Many markets have gone up 100 per cent. Thailand is up almost 4 times from the 2009 lows. So we have very extended markets. Many countries in Asia have an asset bubble in real estate and we have the Chinese economy which, I believe, is growing at present at a much slower rate than what the official statistics would suggest.
ET Now: So what is your view on India? Can it get back to 6-7% growth rates, thanks to reforms the Indian government has taken?
Marc Faber: The Indian economy will grow in the long term more modestly than expected. Now can there be years when it only grows at 3% or where there is no growth at all or can there be years when it grows at 7%? Yes, it is possible, but for long term, I think that the Indian economy, by the way also China, will slow down.