Friday, April 11, 2014
The Market is slowly waking up to the fact that the Federal Reserve is a clueless Organization
''I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash,'' Dr Faber told CNBC. ''And I suspect it will be even worse.'' 'I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations,'' Faber said. 'They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run.''
''I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization,'' Faber said.
''They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
''This year, for sure-maybe from a higher diving board-the S&P will drop 20 per cent,'' Faber said, before correcting himself.
''I think, rather, 30 per cent. Who knows. But all I'm saying is that it's not a very good time, right now, to buy stocks.''
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.
Posted by Nicole Bourbaki