Stock Market : The Confidence level of Investors is Diminishing

“it’s not a very good time right now to buy stocks.” “This year, for sure—maybe from a higher diving board—the S&P will drop 20 percent,” Faber said. “I think, rather, 30 percent. Who knows. But all I’m saying is that it’s not a very good time, right now, to buy stocks.” “I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization,” added Faber. “They have no idea what they’re doing. And so the confidence level of investors is diminishing.”

- in CNBC , Click here to watch the full interview >>>>

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.

Stock Market : We have not hit the Bottom Yet

“Its very likely that we're seeing in the next 12 months an '87-type of crash, and I suspect it will be even worse,” said the man known as 'Dr. Doom.' “This year for sure, maybe from a higher diving board, the S&P will drop 20 percent, maybe even 30 percent,”
  - in CNBC , Click here to watch the full interview >>>>

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.

Stock Markets could fall 20 to 30 percent

Stock Markets are oversold in the next ten days on a very short term basis, not just in the US but in other countries as well. The S&P could rebound to 1630 - 1640. The highs from May was 1687 and the markets could correct 20 to 30 percent from those highs.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Stock Market : Something will Break very bad this Summer

Q: Mr. Faber, you have indicated you believe there will be a market crash this summer. Can you tell us what might precede such an event? - Bill

Marc Faber: “What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent? We don’t know these things ahead of time, but something will always move markets up and something will always move them down. I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. .... Something could come along, geopolitically or otherwise. I would be very careful being overweight equities. I still have 25 per cent in equities and 25 per cent in corporate bonds.”
He said he feels “deeply uncomfortable” with that much allocation to equities, but also doesn’t want to shut stocks out entirely given the possibility they could still rise significantly before a correction.
“In the 40 years I’ve been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality ... Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up. “Something will break very bad.” - in the GlobeandMail

Marc Faber : Prepare for October Stock Market Plunge

Marc Faber Says Prepare for October Stock Market Plunge to be followed by a rally into the end of the year. More Quantitative Easing may not please the markets.
Marc Faber :"I think that there are people who have extreme views either extremely bullish or extremely bearish. I think we maybe in a kind of a trading range whereby first we go down somewhat into October-November and then rally again towards the end of the year.
I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks."
"We have touched 1,010 at the low point and we trade it several times around 1,040. Though there is some support there, but I wouldn’t bet that it’s not going to be broken on the downside. The fact is simply the economy is not doing well and it is very likely that they will have more monetary easing and further stimulus packages. I am not sure that the stock market will take that well, maybe the stock market won’t be very happy about additional stimulus, more interventions into the free market. Though anything could happen, but let’s put it this way that I do not think that we will go and breakdown below the March 2009 level. I think that may have seen a major low and that we will be in a kind of a trading range around this level we are at here. "

We can have a booming stock market with an economic collapse

Zimbabwe was Best Performing Stock Market in 2007 when its GDP was collapsing and currency plummeting Marc Faber explained it elegantly by saying :
"The worse the economic conditions, the more stocks will go up!" Lateline interview on 26 August 2009.

If you want to watch the full Interview Click Here

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