mkt still in Correction raise cash retest of 1343 SPX likely before end of 2013
Marc Faber's forecast hasn't changed over the course of the year. The editor and publisher of the Gloom, Boom & Doom Report is still calling for a steep correction in the stock market.
Commenting on the stock rally in March, Faber told CNBC, "I believe it will end badly this year," predicting the market would see a 20 percent correction, or worse.
As we approach the end of the third quarter, Faber affirmed his conviction, telling CNBC that the trouble has already begun.
Pointing to Indonesia, India and other markets, he explained, in dollar terms, some have already dropped over 30 percent in two months.
"So we have some big setbacks globally. Not yet in the U.S.," he admitted.
"But in the U.S, you look at housing stocks. The homebuilders, they're down 30 percent from their highs. Tells you something about this wonderful housing recovery."
At this point, Faber sees U.S. equities as a "better sell than a buy."
"In my view, we'll go back to the lows in November 2012 — around 1,343," in the S&P 500, he predicted.
Instead of stocks, Faber recommended considering Treasurys.
"I think the sentiment is incredibly bearish about Treasury bonds and Treasury notes," he said. If the market drops, "people will again fear deflation, and they will move into 10-year Treasury notes."
And one reason he foresees trouble now is due to his expectation that investors will feel similarly about U.S. stocks.
"When emerging markets go down and the S&P goes up, the asset allocators say, 'Do I want to buy the S&P near a high, or do I venture back into emerging economies that are down 50 percent from their highs, like India or Brazil and so forth?" Faber asked.
"So you understand that the pool of money can flow back into emerging markets," he said.
In addition, the United States is making the mistake of pushing for military action in Syria, he noted.
Syrian President Bashar al-Assad has warned!