Marc Faber – Either A Correction Now, Or A Crash In July August

In a Recent CNBC Interview Dr. Marc Faber, editor & publisher of The Gloom, Boom & Doom Report and Investment Guru said though the US markets are not as over-bought as they were in 1987, they have peaked out. Faber, however, on the optimistic side rules out any possibility of a market crash. The S&P 500 posted its worst two-day loss since November after US stocks fell for a second straight day on Thursday after reports cast doubt over the health of the US and euro-zone economies. The S&P 500 closed at 1,502.52 Thursday. “I do not think that the market is as over bought as it was in 1987. So I do not expect a crash, but I think for the time being the market has peaked out. And I think that in the meantime, bonds which are extremely oversold could rebound,” says Faber. On the possibility of the market correcting, Faber adds, “Either we have a correction now and then we go up further, or we go straight up into a high in July-August from where we could crash. So, I welcome a correction here.” The market has a bullish view now. “The market has now become quite overbought and that there is very significant or over-extended bullish sentiment. Everybody says sell bonds, buy equities. And when everybody thinks alike, one has to be careful. If we have a correction of 10%, I wouldn’t necessarily buy into the market. I would watch the rebound because I think there is a very great chance that the rebound will fail to make a new high,” he added.