The next one is going to be the worst correction in my lifetime. In 2008, we had a problem because of too much debt, but now the debt in the world is much, much worse. Next time, its going to be much worse when we have such an economic problem.
In 2007, when Iceland went bankrupt, nobody had ever heard of it. Then it was the Lehman Brothers that went bankrupt. It was then that people knew that there was a problem. We are not looking at the small things.
Many Indian banks have a problem, and people are not paying much attention to it. There have been bankruptcies in China. Some things can happen, but we don’t know when. I do know we are closer.
Which asset class are you most bullish on? What are you bearish on?
I am most bullish on probably agriculture commodities, Russian government bonds in roubles, Chinese shares, Japanese shares. Some of these assets are depressed and have a chance to rise.
I am most bearish on FANG (Facebook, Amazon, Netflix and Google, which is now Alphabet) stocks in America. They cannot skyrocket from here. They are certainly turning into a bubble. Just because I said I am not optimistic, doesn’t mean I am going to sell them short, because bubbles really do strange things.
Which lesser-known markets have the potential to make it big?
Zimbabwe could be one. It has been a disaster for some years. We are going to have a new government next week. Colombia is very exciting, too.
- Source, Live Mint
