Wednesday, August 28, 2013
Stock Prices : A 20 percent Correction would not surprise me at all
HardAssetsInvestor: What are your views on the stock market?
Marc Faber : Following the huge increase in stock prices we had since March 2009, when the S&P was at 666, a 20 percent correction would not surprise me at all. I don’t look at the 20 percent correction as a huge decline in stock prices. In Asia, we’ve had corrections in the order of 20 percent in many markets. We had a huge decline in bond prices in the U.S.
In July 2012, yields on the 10-year bond were at 1.43 percent; we’re now close to 2.9 percent. Yields have doubled. The longs have been hit quite hard. I don’t regard a 20 percent correction in stocks as a huge bear market.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.