Automotiv_September

Monthly automotive aftermarket magazine
Swiss investor Faber says now good
time to invest in Turkish assets
Renowned global investor and
markets commentator Marc
Faber, best known for being a
market pessimist which earned
him the nickname "Dr. Doom",
said Turkish assets could present
a good investment opportunity at
the moment.
Although the economic strategist
has been warning since 2010
that global markets are headed
for a 1987-style market crash,
Faber told Anadolu Agency that
he didn't foresee such a grim
future for the Turkish economy.
"People always say they would
like to buy low and sell high. Well,
Turkish stocks are valued in U.S
dollars. At the moment they are
within buying range. I am going
to buy some Turkish assets, ETF's
(Exchange-Traded Funds)," he
said.
Stating that he already had some
Turkish bonds, although not in
very large quantities, Faber said
Marc Faber, İnvestor
now was a good time to invest in
Turkish assets.
Faber, who is also the publisher
of "The Gloom, Boom & Doom
Report", said Turkey must reduce
its sensitivities, narrow its trade
deficit and close its current
account deficit to not be affected
by volatility in the coming period.
Reiterating that the foreign and
economic policies of the United
States were not right, the Swiss
investor said: "Trump is not
pursuing diplomacy in foreign
policy. He is like a bull in a china
shop. He keeps picking on
everyone; there is no diplomacy
whatsoever. "
"Turkey's Trump card is NATO.
NATO has crucial bases in Turkey.
Turkey has two options in the
long-term; it can stay close to
Europe and stay in NATO or
join the Shanghai Cooperation
Organization. This would indicate
that Turkey has left the West or
that it will be in less contact with
it, becoming closer with Russia
and China instead. This is an
option in Mr. Erdoğan's hand. I
think Trump does not understand
that this is a very real possibility,"
he said adding that Turkey was
not without alternatives.
Underlining that U.S. President
Donald Trump's trade policies
could drag the world into
recession, Faber said, "Economists
around Trump believe that imports
from China are responsible for
the U.S.' trade deficit. China is
the indicator of the US.' declining
competitive power. The U.S. has
had low capital investment over
the last 20-30years. Economists
believed that consumption should
be increased to increase growth.
The result is naturally an increase
in trade deficit. "
Faber pointed out that the
consequences of the global trade
wars initiated by the U.S. could be
devastating, saying "Trade wars
are complete madness. They are
continuing at a time the global
economy is already slowing
down. Just look at copper prices
now, for example, they have
completely collapsed. This is a
sign that the global economy
is slowing down. I think we are
headed towards a recession."
President Trump announced
on Aug. 10 that the U.S. was
doubling aluminum and steel
import tariffs on Turkey, fixing
them at 20 percent and 50
percent, respectively.
In retaliation, Turkey also
increased tariffs on several U.S.-
origin products, including alcohol
and tobacco products and cars,
according to a new presidential
decree published in the official
gazette.
44 SEPTEMBER 2018