Marc Faber thinks stocks will correct by 20 percent to 30 percent but said they will present good value only if they drop more. With CNBC's Jackie DeAngelis and the "Futures Now" traders.
"I think the market is way overdue for a 20 to 30 percent correction,"
said Faber, the editor and publisher of the Gloom, Boom & Doom
Report. But that is "nothing that worries me," he said. "In fact, I'm
hoping for the market to drop 40 percent so stocks will again
become—from a value point of view—attractive."Faber added with a chuckle: "But that is not the view of someone who is fully invested—obviously not."
"I think stocks are, by and large, fully priced," Faber said. "I think
the experience with quantitative easing is a complete failure. It has
lifted asset prices and created asset inflation, but it hasn't lifted
the standard of living of most people in the U.S. nor worldwide.""I'd
like to reserve the opinion about this until we see the nature of the
rebound," he said. "If the rebound fails around 1,820 [on the S&P 500] and then the market starts to drift again on the downside, and we see important shares for the market such as General Motors, GE, Coke ... failing to make new highs, then I think we can assume that something more serious is in the offing."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.