Renowned investment advisor Marc Faber sets out to find tomorrow’s gold – the outperforming asset classes of the future. Far from being a sensational reading of the runes, this book delves deep into the past, to chart how old investor trends developed and assess how new patterns might emerge.
One problem that he foresee is that China will grow out of proportion for harmonious balance of power in Asia. When China becomes Asia’s largest trading partner in both exports and imports, it will not only be an economic hegemon but also replace the US as Asia’s most influential political power. This transition will lead to some serious tension between US and Japan on one side, and China on the other is obvious – the trend is there and unstoppable.
In the 1990s, it was highly favourable for companies such as Coco-Cola, Nike, McDonald’s, Starbucks, Gillette, Procter & Gamble etc. However Mr Marc Faber sees that vengeance coming from companies based in emerging economies. In the 1990s, the learned their foreign competitors’ methods for successfully running businesses, since many foreigners formed joint ventures that transferred knowledge, skills and manufacturing technology to the local partners. Therefore, there will be more and more Chinese and other brands gaining market share in their local markets and coming onto the world’s markets to compete with the established brands.