I don't think big corruption comes from bank notes: Marc Faber

Speaking to CNBC-TV18 Marc Faber of The Gloom, Boom & Doom Report, says Indian government move to clampdown on black money is negative in the longer run. I don’t think big corruption comes from bank notes.

His view is that regardless of who wins the US elections, stock markets would go down.Below is the transcript of Marc Faber’s interview to Anuj Singhal, Sonia Shenoy and Latha Venkatesh on CNBC-TV18.Anuj: I remember when I can to Chiang Mai to interview you, you said you would vote for anyone but Hillary Clinton. You would be a happy man today.A: Yes, and I still would do the same.Latha: But what do you do as a stock picker? This evening would you be looking at buying any of the emerging markets, developed markets? What are you doing with your money today?A: I am not interested in today. When I invest money, I am interested in the next 5-10 years and I told you always over the last two years, I would rather invest in India than in the United States, which is an over-valued, over-promoted market. I would also rather invest in other emerging economies and in Europe than in the US.Sonia: So, since you mentioned that you would invest in India rather than other economies, I wanted to ask you if you have been following the latest news flow that we have about the clamp down on black money that we had overnight. How much of a positive do you think it could mean in the longer run for India?A: It is negative in the longer run. I do not believe the big corruption comes from bank notes. The big corruption is like Hillary Clinton, she carries around suitcases.Latha: But do you expect there is going to be any protracted downturn since the markets were not prepared for a Trump victory. Are we going to see protracted, in terms of time period as well, losses in equity markets?A: My view is that regardless who would have won, the stock markets would have gone down. But, the market made a high a year ago at 2,134 on May 25, and then we went down and in January of this year, we dropped to 1,810 and then we recovered and made a new high at 2,193 on the Standard and Poor (S&P). If the market drops towards the low of this year, which is 1,810, the Fed will launch quantitative easing (QE)-IV. The Fed will support the stock market. The moment it drops 10-20 percent, they will support the stock market.