Marc Faber Warns of Stock Market Doom and 50% Collapse

By on August 11, 2016

Marc Faber - Gloom Boom and Doom ReportEditor and publisher of the Gloom, Boom & Doom Report, Marc Faber, provided a grim assessment of the stock market’s future on CNBC’s Trading Nation Monday.

“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber stated.

“The fact is, the market hasn’t really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It’s not that many stocks that have been making new highs. It’s quite a narrow growth of stocks that have been very strong,” Faber added.

Faber also noted that Tesla shares seemed overpriced with the potential competition they face from other major automakers. He advised selling short stocks such as TSLA, which will go to $0 in his opinion, as a hedge against a portfolio of stocks.

Faber recommended investors limit their focus to buying into emerging markets, gold, platinum and silver.

A year ago Faber said he expected a bear market to unfold [link].

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>