Friday, June 28, 2013
Marc Faber: I See Further Downside to S&P 500
China's factory output weakened to a 9-month low today, and financials saw a huge sell-off today, with the FM traders; and The Gloom, Boom and Doom Report's Marc Faber, shares his economic outlook.
Marc Faber : "Yes, I see further downside," said the editor of "The Gloom Boom & Doom Report."
However, Faber said that there were plenty of reasons for stocks to head lower other than what the Federal Reserve was doing in terms of quantitative easing.
"I think the markets are worried about something else," he said on "Fast Money."
Faber noted that interest rates have been rising for a year, pointing to the 30-year U.S. Treasury bond and the 10-year U.S. Treasury note bottoming out in July.
"So, we've been in an uptrend in interest rates," he added.
But that wasn't the whole bear case.
"The Chinese economy is much weaker than the official statistics suggest," Faber said.
"My view would be that at the present time, the Chinese economy is growing at something like 4 percent per annum, and without huge credit expansion there would probably be no growth at all."
Posted by Nicole Bourbaki