I have listened to several financial investors over the last several years. Marc Faber has definitely been the most bearish on the American economy since I first heard about him in 2010. Now he is making another bearish prediction:
Are we about to witness one of the largest stock market crashes in U.S. history? Swiss investor Marc Faber is the publisher of the “Gloom, Boom & Doom Report”, and he has been a regular guest on CNBC for years. And even though U.S. stocks have been setting new record high after new record high in recent weeks, he is warning that a massive stock market crash is in our very near future. According to Faber, we could “easily” see the S&P 500 plunge all the way down to 1,100. As I sit here writing this article, the S&P 500 is sitting at 2,181.74, so that would be a drop of cataclysmic proportions. The following is an excerpt from a CNBC article that discussed the remarks that Faber made on their network on Monday…
The notoriously bearish Marc Faber is doubling down on his dire market view.
The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC’s “Trading Nation” that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history.
“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber said, referring to a level 50 percent below Monday’s closing on the S&P 500.
Here is what he said in January of 2007 regarding the coming stock market collapse:
“In the next few months, we could get a severe correction in all asset markets,” Faber said in an interview with Bloomberg Television in New York. “In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.”
Faber, founder and managing director of Hong Kong-based Marc Faber Ltd., advised investors to buy gold in 2001, which has since more than doubled. His company manages about $300 million in assets.
The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said. Last year, the Morgan Stanley Capital International World Index of developed stock markets jumped 18 percent, while a survey of Wall Street’s biggest bond-trading firms predicted U.S. Treasuries will post the best gains in five years during 2007.
“I am not a great buyer of assets now,” Faber said. “We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets.”
Here is an archived copy of his original January 8, 2007 prediction of the coming 2008 financial collapse:
Now here is what he is saying right now:
The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC’s “Trading Nation” that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history. “I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber said, referring to a level 50 percent below Monday’s closing on the S&P 500.
Marc Faber doesn’t go into much detail about currencies in the Middle East such as the Iraqi Dinar, there are not many who actually do. I know that many on my newsletter list are waiting to hear from someone regarding Iraq. The issue is since the currency is not used outside that country (not even in the surrounding regions) that it’s difficult to tell what is happening. With the ISIS situation in Iraq as well as the CBI making statements that they will be reducing the number of zeros in their currency, you can easily become confused and overwhelmed.
It would be nice to hear from some major investor of Iraq, but unfortunately, you just don’t find any.