Marc Faber Feels Next Big Market Move to be Down
CNBC’s Melissa Lee interviewed the Gloom, Boom and Doom Report’s founder Marc Faber today to get his market forecast.
Faber stated the rally wasn’t convincing in terms of new highs and volume. The stock market, along with gold, has traded in a narrow range, he added. Faber said his guess is the market will break out of its range to the downside since the market is already overbought here.
Regarding how low he sees the market falling, Faber said if the S&P 500 drops 150 points (roughly 11%) we will see QE3 and QE4. He would expect a bounce after that, but feels we have seen the highs for the year.
Faber projected that 2013 will be a difficult year for equities.
Back in May, Faber said typically during an election year we have a rally from late May onward, along with positive seasonal trends until August [link].