MARC FABER: October 1987 Crash All Over Again

Marc Faber: Markets Are Oversold; Day Before Crash in 1987 Market Was Oversold





MARC FABER: Well I have this to say about markets: they have become very oversold in the near term and medium term. Long term, if you look at this--say twenty years short of the S&P--the recent decline hardly shows up, but it can get much worse. Let me remind your viewers that the day before the market crashed in October 1987, the market was also already oversold, and then the Dow dropped 21 percent in one day. So unusual things can happen when the goal of the authorities is to reduce some rift through central banking and monetary policies and fiscal policies. Then these depressed risks come back one day at the systemic rate, and this is what may happen now.



Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.