"Everything is possible," he replied. "I also expressed that it was conceivable that we were in a year like 1987, and that the market would go straight up and then have a meaningful decline. And I still believe that there are considerable risks." "A lot of stocks are down significantly from their recent highs. Many fund managers have underperformed the indices because so many stocks have been going down," Faber said. "We have to look at everything in the context. And I also have to point out that I've always advocated, in absence of knowing the future, to have roughly 25 percent in stocks, 25 percent in bonds." "Two years ago, I was of the view that it would be healthy for the market to have a 20 percent correction, and that's what I've expected. And many stocks have actually had 20 percent corrections over the last two years. But a limited number of stocks have driven up the indices. And of course, let me remind you ... in three years, we've almost doubled. If you really believe that every three years the market will double, then go and buy shares. I don't believe that," Faber said.
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.