Faber Says Plunge Caused by Market Rising `Too Quickly'
Marc Faber : "I do not think that Greece is the cause of the selloff , I believe it is a catalyst but the cause of the fail off is that the market run up too much too quickly , in other words most emerging markets were up more than hundred percent from the March 2009 lows and the S&P is up more than eighty percent and as I have argued we would see a 20% to 30% correction this year anyway now it just happened that these 20% correction happened within ten days we made a low today at 1060 on the S&P the low on February fifth this year was 1045 and then we rallied to 1220 and now we dropped and closed at 1128 , so I think that the market was over bought ahead of itself and due for a correction anyway and then the computer programs as the market started to go down they had to change their positions from being long to short and that then triggered the big selloff "
Marc Faber :"I think that Asia will go down today , the question is by how much , because the Asian markets were not as overbought as the S&P , The Hang Seng index was before the selloff begin below the November highs and the Shanghai index was below the November highs and below the August 2009 highs so in many asian market we are actually already down on the year and not up like the S&P so may be the decline won't be as brutal , and also I would argue that as of todays low the S&P became about as over sold as it was after the crash in 87 where we had a substantial rebound ".....
May 6 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks with Bloomberg's Matt Miller and Margaret Brennan about today's selloff in U.S. stocks. U.S. stocks tumbled the most in a year on concern Europes debt crisis will halt the global recovery. (Source: Bloomberg)