Mark Faber on Indian Stock Market

Last week i saw following comments from Mark Faber (allegedly called investment guru))on moneycontrol . He is expecting a 30-40% drop in Indian equities from current levels
"According to Investment Guru, Marc Faber, the emerging markets may get oversold in the next six months and then see a rally. New highs are pretty much out of question, he told CNBC-TV18. Some EMs can still drop 30-40% from the current levels, he added.
Precious metals are still relatively attractive, Faber said. The Sensex may test 14,000 before slipping to 12,000 levels he said "
(http://www.moneycontrol.com/india/news/fii-view/sensex-
may-test-14k-then-slip-to-12k-marc-faber/14/24/327434)

I want to share some of his previous comments here .

On June 13, 2006 he gave a sell recommendation on Indian equities and expected a 30% fall from that levels which never happened on the contrary equities gone up by more than 50% in that year " http://www.ameinfo.com/88675.html "

On march 15, 2007 he came with another sell recommendation on Indian as well as Chinese equities and in that year Indian equities were gone up over 50% and Chinese equities were up more than 100% " http://www.ameinfo.com/113715.html "

He gave 5000-6000 target for Sensex in 2006 and 9000 in 2007 and Sensex has beaten his predictions with a margin of over 100% in both cases . I cant understand the wisdom calling a person who is giving such a poor predictions a investment guru , and publishing his comments in headlines.

One thing he consistently advices was to invest in gold . Gold as a asset class historically given least returns. From $850 per ounce in 80's it has fallen to $300 in 2000 . It rallied from then to above $900 at present . If you add inflation to this from last 30 years gold in fact has given -ve returns.

RK