Monday, February 11, 2013

Marc Faber : We could Easily see 10 percent Correction

CNBC-TV18: Would you be expecting a 10 percent kind of correction in global equities across the board or do you think it may not be that deep?

Marc Faber : Yes, we could easily see 10 percent correction. We have seen over 30 percent correction in Apple. So it is a reminder that stocks move up and they can also move down. My scenario for 2013 is either the market will make a peak relatively soon which will not be exceeded or we have a correction of a month or two and then another strong rally into August, such as we had in 1987 when the Dow Jones between January 1987 and August 1987 increased by 41 percent. However, it then lost 40 percent in two months.

I think there is a chance that in order to actually punish central bankers, markets would become extremely overheated and then crash. - in CNBC TV 18


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