Renowned investor Marc Faber has made another dire prediction for the stock market: It may fall by as much as 40% or even more.
June 28, 2017
Renowned investor Marc Faber has made another dire prediction for the stock market: It may fall by as much as 40% or even more. “Dr Doom” Marc Faber, the author of “Gloom, Boom & Doom Report,” said in an interview to CNBC TV that the stock market could see another ‘lurch’ higher, but then the investors may want to cash out and run for cover.
“We have had more than eight years of a bull market,” Marc Faber, the bearish investor, said. “The Nasdaq is being driven by very few stocks,” he said, adding that it “usually is not a particularly healthy sign from a technical point of view.” Further, March Faber said that the valuations are very high and there is a lot of volatility. “We have a lot of volatility, and when things start to go down they will go down a lot,” he said.
Earlier in April, Marc Faber had suggested investing into commodity-related stocks over financial assets given the low prices of commodities. However, in the interview to ET Now, Marc Faber had cautioned that each commodity has to be analysed separately. Global prices of most major commodities, including crude oil, are on a sustained fall since mid-2014, with the RJ CRB Commodity Total Return Index falling over 40% during the period. Oil prices are falling on rising US shale output and record inventories. Marc Faber had also pointed out to a positive outlook for copper, as he said that the shift to electric cars will increase demand for the metal.