Thursday, August 21, 2014
U.S. Stock Market : I don't think that the pullback has been substantial
ETF.com: Recently the U.S. stock markets had a pretty sharp pullback. Do you see this as the start of that 20-30 percent market kind of plunge that you've been predicting for this coming fall?
Marc Faber : I don't think that the pullback has been substantial. Now, it is true that it has been substantial in some stocks, but by and large, the market, after having risen for five years in a row, since March 2009—and some indices are up three times—the recent decline of something like 4 percent on the S&P and 7 percent on the Russell 2000 is a very tiny decline.
Having said that, from a very-near-term perspective—say, 10 days to one month—as of Thursday night of last week, the market has become very oversold, with only 20 percent of the shares on the New York Stock Exchange trading above the 50-day moving average. That is a short-term, very oversold condition. - in ETF.com
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