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Dr. Doom: US Rally Will End Really, Really Badly

Lawrence Lewitinn
Talking Numbers
Dr. Doom: US Rally Will End Really, Really Badly

Marc Faber, Editor and Publisher of the Gloom, Boom & Doom Report, is one of the world’s most famous market contrarians. He’s been pretty good about predicting bubbles and collapses over the past couple of decades. In this, the third of a three-part interview, Faber explains that in market history, what goes up eventually comes down hard.

Marc Faber believes history is a guide to how markets can behave. And he thinks the US markets have a history of behaving badly.

The economist and fund manager known as “Dr. Doom” for his contrarian predictions during bull markets believes the stock market in the United States is overdue for “a correction”. In other words, it’s headed down. But, it won’t take the quick way down. The market may very well continue up. Well, for a little bit.

“There’s a chance that this market could behave like 1987 where the market went up first 40% from January until August 25 [1987] and then collapsed by 41% in two months,” says Faber.

That’s not the only example. He cites boom and busts in the NASDAQ 100 in 1999 – 2000 and oil in 2008. The speed at which the US markets have risen rings alarm bells for Faber.

For more on what Faber thinks of the markets and what stocks he thinks are cheap, see the video above.

See also:
Part 1: Dr. Doom: Correction Coming for Japanese Stocks, Yen
Part 2: Dr. Doom: US Government Can Take Away Your Gold