Friday, August 9, 2013
Marc Faber: The Market to Drop 20% this year
Marc Faber : “In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber told CNBC on Thursday. “The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks.”
"If you look at the last two days," Faber said, referring to Tuesday and Wednesday, "it's remarkable. We are close to the all-time high, at 1,709 on the S&P, and yet yesterday and the day before, there were 170 new 52-week lows. That's a very high figure."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Posted by Biz TV