Novenove
Moderator
Mark faber bear market
Marc Faber: Prepare for a Massive Market Meltdown
Published: Tuesday, 13 Nov 2012 | 7:54 AM ET
Text Size
By: Holly Ellyatt
Assistant News Editor
·
Twitter
LinkedIn
Share
The markets are going to go into meltdown soon so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom report told CNBC on Tuesday.
Marc Faber, managing director of Marc Faber Ltd. and publisher of the Gloom, Boom and Doom Report
“I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” – because there won’t be a “fiscal cliff,” Faber told CNBC’s “Squawk Box.”
“The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”
Faber, who is known for his bearish views, cited tech giant Apple[AAPL 542.83 ], a company whose disappointing earnings have caused its stock to fall 20 percent from its September highs and 14 percent in the past month.
A series of poor quarterly earnings from corporate giants such as Amazon[AMZN 226.47 ], McDonalds[MCD 84.88 ] and Google[GOOG 665.90 ]have hurt investor sentiment in recent weeks.
Faber argued that the “fiscal cliff,” a rise in taxes and automatic spending cuts, would actually involve some minor tax increases in “five years’ time” and some spending cuts “in 100 years.”
RELATED LINKS
· On Ice! ‘Cliff’ Fears Put a Chill on Dividend Stocks
· West in a ‘Colossal Mess’ in Five to 10 Years: Marc Faber
· Marc Faber: Buy These to Prepare for Coming Collapse
· Marc Faber: If I Were Bernanke, I Would Resign
What the U.S. needed was some pain, he said, aptly demonstrated by the euro zone’s austerity measures that are attempting, with a mixed measure of success, to curb gaping budget deficits.
“There will be pain and there will be very substantial pain. The question is do we take less pain now through austerity or risk a complete collapse of society in five to ten years’ time?” he said, adding that there was a lack of political will to tackle the U.S. budget.
(Read More: Forget Mayans, Be Afraid of US Budget Armageddon)
“In a democracy, they’re not going to take the pain, they’re going to kick down the problems and they’re going to get bigger and bigger.”
Payback Time
Faber identified several issues curbing an economic recovery, such as the real estate market, which he said had never been so “overbuilt.” He also said there was lots more deleveraging ahead.
Marc Faber: Prepare for a Massive Market Meltdown
Published: Tuesday, 13 Nov 2012 | 7:54 AM ET
Text Size
By: Holly Ellyatt
Assistant News Editor
·
0
11
The markets are going to go into meltdown soon so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom report told CNBC on Tuesday.
Bloomberg | Getty Images
“I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” – because there won’t be a “fiscal cliff,” Faber told CNBC’s “Squawk Box.”
“The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”
Faber, who is known for his bearish views, cited tech giant Apple[AAPL 542.83 ], a company whose disappointing earnings have caused its stock to fall 20 percent from its September highs and 14 percent in the past month.
A series of poor quarterly earnings from corporate giants such as Amazon[AMZN 226.47 ], McDonalds[MCD 84.88 ] and Google[GOOG 665.90 ]have hurt investor sentiment in recent weeks.
Faber argued that the “fiscal cliff,” a rise in taxes and automatic spending cuts, would actually involve some minor tax increases in “five years’ time” and some spending cuts “in 100 years.”
RELATED LINKS
· On Ice! ‘Cliff’ Fears Put a Chill on Dividend Stocks
· West in a ‘Colossal Mess’ in Five to 10 Years: Marc Faber
· Marc Faber: Buy These to Prepare for Coming Collapse
· Marc Faber: If I Were Bernanke, I Would Resign
What the U.S. needed was some pain, he said, aptly demonstrated by the euro zone’s austerity measures that are attempting, with a mixed measure of success, to curb gaping budget deficits.
“There will be pain and there will be very substantial pain. The question is do we take less pain now through austerity or risk a complete collapse of society in five to ten years’ time?” he said, adding that there was a lack of political will to tackle the U.S. budget.
(Read More: Forget Mayans, Be Afraid of US Budget Armageddon)
“In a democracy, they’re not going to take the pain, they’re going to kick down the problems and they’re going to get bigger and bigger.”
Payback Time
Faber identified several issues curbing an economic recovery, such as the real estate market, which he said had never been so “overbuilt.” He also said there was lots more deleveraging ahead.
confermo
.
