Marc Faber said it’s a good idea to take money out of the stock market.“I don’t think there is a lot of upside potential, but I think there is considerable downside,” he said.
However, he said that markets are now seeing emerging markets and their currencies go lower, and “It could be that all the money in the world flows in to U.S. stocks and avoids emerging markets.”Gold can eventually be a source of profit, according to Faber. He said it’s possible the price of gold can go somewhat lower, even though he thinks it’s now at a reasonable level. “I keep on buying gold and I have faith that gold prices will eventually be higher,” Faber said.
Faber said that, in general, corporate earnings will disappoint.
“They may not collapse, but I don’t think they will be as a good as expected,” Faber said. He said cyclical stocks, such as semiconductors and materials companies, will have tough time matching earnings expectations. - in Yahoo FinanceMarc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.