"It's easy to blame someone else for ones problems," says Faber. "Emerging markets central bankers are blaming now the Fed for the tapering… The Fed has brought about problem in emerging economies. But, it's not the tapering. It's the previous bubble they created because investors were chasing yield. They bought emerging market stocks, emerging market currencies, and bonds. They pushed up these asset prices to relatively high levels."
"The market in the US, the S&P went from 666 in March 2009 – almost five years ago – to 1,850," says Faber. "Now the market dropped 7% and it seems that it's the end of the world. This is ridiculous."
"Compared to the previous increase in prices," says Faber, "the market retreat of 7% is nothing, nothing at all!
"Social media stocks are more overpriced than the internet shares were in year 2000," says Faber."In year 2000, between January and March, [internet stocks] still went up 30%.... And then, it collapsed," says Faber. "I'm not saying that individual investors should short these stocks because they may get burned. But, by and large, the fact that they still go up doesn't make them good value from a long-term perspective."
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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.