Posted on 06/25/2017 6:11:36 PM PDT by SkyPilot
If the man often hailed as the original "Dr. Doom" is right, the stock market could see another "lurch" higher — at which point investors may want to cash out quickly and run for cover.
Marc Faber, the editor of "The Gloom, Boom & Doom Report' and a perennial bear, isn't backing down from his latest dire prediction that would send stocks plummeting by 40 percent or more.
A drop of that size could take the S&P 500 Index down from Friday's closing price of 2,438 to 1,463.
He used the meteoric rise of FANG stocks, which reflects Facebook, Apple, Netflix and Google (Alphabet), as a glaring bearish signal.
"We've had more than eight years of a bull market. The Nasdaq is being driven by very few stocks," said Faber on Friday's "Trading Nation." That rally "is not a particularly healthy sign from a technical point of view, and valuations are very high," the investor added.
Faber's comments come exactly two weeks after the Nasdaq set its latest intraday record high of 6,341.70.
"You know we have a lot of volatility, and when things will start to go down, they'll go down a lot," he said.
Faber is deeply concerned that wealth has flowed to big corporations and affluent people. He believes the imbalance could eventually disrupt the markets as we know it.
"Either people with money will be taxed heavily ... or we'll have a massive deflation in asset prices — I repeat: massive," he warned. "Eventually the system will break."
Faber is known for correction calls over the years which have never materialized. But he's sticking by his latest call, acknowledging critics have "questioned my sanity."
"We could print enough money that the Dow goes to 100,000. All I'm saying is it will end very badly, extremely badly,"
(Excerpt) Read more at cnbc.com ...
Thats him
.
If such a crash happens, lead will be worth far more than gold, if you get my drift.
That’ll probably be the nose under the tent. FedGov will mandate some 10% per account in govt bonds - as a safety measure. The percentage will gradually increase through the years until somewhere around 50% will have to be invested in .01% gvmt paper.
“He has predicted 23 of the last 2 recessions.”
LOL!
Once the boomers start spending their retirement money, things will get interesting.
I expect a call to “nationalize” the 401k.
LOL - good one John...
Of course, Congress has to permit states to declare Chapter 9 ... but why wouldn't Democrat Swamp dwellers use blue states as pawns against the President? Certainly Shuck Fumer's "Indy Mac" letter springs immediately to mind...
The money going into these accounts, I believe, is mostly post-boomer. There are a surprising number of people between 30 and 50 who make very good money.
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