Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

It’s going to end ‘extremely badly,’ with stocks set to plummet 40% or more {TR}
CNBC ^ | 24 Jun 17 | Stephanie Landsman

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 ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: crash; economy; faber; marcfaber; stockmarket
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-69 next last
To: wardamneagle

I’ve been hearing this crap for the past 40 years.


41 posted on 06/25/2017 7:33:34 PM PDT by SamAdams76
[ Post Reply | Private Reply | To 10 | View Replies]

To: utahagen
That's exactly what I do. I've been in the stock market since 1982. I invest a certain amount each month in select "blue chip" companies and just let it ride. You only lose in the stock market when you sell for lower than what you paid for it. Otherwise, any stock downturns are only "paper" losses. Then you use dollar cost averaging to bring your portfolio back up quickly.

I never did understand the fascination with gold. Do people really expect to buy milk and bread by slapping a gold bar on the counter? Give me a break.

42 posted on 06/25/2017 7:37:19 PM PDT by SamAdams76
[ Post Reply | Private Reply | To 22 | View Replies]

To: lee martell

He is hilarious when he reports about her:
“Mother gives a quarter”...etc.


43 posted on 06/25/2017 7:39:11 PM PDT by GnuThere
[ Post Reply | Private Reply | To 26 | View Replies]

To: SkyPilot; All

Don’t worry, everything will be just fine, Congress has already passed the appropriate legislation to fix any financial calamity, it is already Law.

So as far as you, the depositor, are concerned, your money in checking and savings accounts is the bank’s “unsecured debt.” You will have to stand in line behind trillions of dollars of derivative payouts before your checking and savings accounts will be made whole. Both the Bankruptcy Reform Act of 2005 and the Dodd Frank Act provide special protections for derivative counterparties, giving them the legal right to demand collateral to cover losses in the event of insolvency.

They get first dibs, even before the secured deposits of state and local governments. Your chances of recovering your money are about as great as the chances of a snowball in hell.

http://sandiegofreepress.org/2015/01/the-bail-in-how-you-and-your-money-will-be-parted-during-the-next-banking-crisis/


44 posted on 06/25/2017 7:49:58 PM PDT by eyeamok (Idle hands are the Devil's workshop)
[ Post Reply | Private Reply | To 1 | View Replies]

To: plain talk
I also thought the market would tank under Obama

Markets anticipate forseeable events. The Obama crash occurred from Jan 2008 through Dec 2008.

Overlay a chart of the S&P 500 with that of the Iowa electronic market for the likelihood of an Obama win. Almost perfect inverse correlation.

Sell on the rumor, buy on the news.

45 posted on 06/25/2017 7:55:26 PM PDT by T Ruth (Mohammedanism shall be defeated.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: JohnBrowdie

LMAO! Yep...if you keep saying the market is going to drop...it eventually will and in the meantime you are still poor because you didn’t invest.


46 posted on 06/25/2017 8:04:54 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 3 | View Replies]

To: JPJones

The odd thing here is this market was inflated by the gov’t though. If money has another place to go...it will. But it still has no other place to go. If interest rates spike then the market is going to drop.


47 posted on 06/25/2017 8:05:51 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 19 | View Replies]

To: PGR88

Everything you wrote is true. However, I believe it is wrong headed thinking to believe that governments in crisis would not have an appetite to confiscate gold today. It, and other precious metals, would compete with the fiat currency markets, as broken as they are. Also, the confiscation of assets would be required during the huge “bail in” that would inevitably result from a global stock market crash. There are also a myriad of other reasons why they would confiscate gold.


48 posted on 06/25/2017 8:06:51 PM PDT by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
[ Post Reply | Private Reply | To 38 | View Replies]

To: JohnBrowdie

lol


49 posted on 06/25/2017 8:08:22 PM PDT by kanawa (Trump Loves a Great Deal)
[ Post Reply | Private Reply | To 3 | View Replies]

To: MeneMeneTekelUpharsin

Faber is a brilliant guy.

That said, he isn’t putting a specific time deadline on when - just commenting on the high valuation.


50 posted on 06/25/2017 8:12:24 PM PDT by aMorePerfectUnion
[ Post Reply | Private Reply | To 17 | View Replies]

To: JohnBrowdie

“He has predicted 23 of the last 2 recessions.”

I was devising something similar when I saw your post. It’s also important to remember that 89.37 percent of all statistics are made up on the spot.


51 posted on 06/25/2017 8:14:12 PM PDT by vrwconspiracist (The Tax Man cometh)
[ Post Reply | Private Reply | To 3 | View Replies]

To: T Ruth

nice try. you get partial credit.


52 posted on 06/25/2017 8:15:35 PM PDT by plain talk
[ Post Reply | Private Reply | To 45 | View Replies]

To: SkyPilot
Money in regular CHECKING ACCOUNTS will "get a Haircut" too !
53 posted on 06/25/2017 8:18:52 PM PDT by Yosemitest (It's SIMPLE ! ... Fight, ... or Die !)
[ Post Reply | Private Reply | To 29 | View Replies]

To: E. Pluribus Unum

.
Put your money in solid functional goods.

Things like pickup trucks, large SUVs, plywood, fuel, iodine, guns, and ammunition.

Certain types of foods that are easy to store, but pleasant to eat are also a form of wealth with intrinsic value.

Nuclear war is unavoidable, and will destroy stocks and fiat currencies.


54 posted on 06/25/2017 8:23:42 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
[ Post Reply | Private Reply | To 2 | View Replies]

To: MeneMeneTekelUpharsin

“Faber is known for correction calls over the years which have never materialized.”


55 posted on 06/25/2017 8:29:42 PM PDT by John W (Trump/Pence 2020)
[ Post Reply | Private Reply | To 17 | View Replies]

To: SkyPilot

Earth to Dr. Doom:

Cankles lost. Trump is now the Prez. Life in these United States is getting better and the stock market is doing better virtually every week!


56 posted on 06/25/2017 8:39:11 PM PDT by Rembrandt
[ Post Reply | Private Reply | To 1 | View Replies]

To: for-q-clinton

“If interest rates spike then the market is going to drop.”

Agree.

And if interest rates DON’T spike then the market is going to spike.


57 posted on 06/25/2017 8:44:52 PM PDT by JPJones (There is no Law but Constitutional Law, and America is Its Agent)
[ Post Reply | Private Reply | To 47 | View Replies]

To: SkyPilot
"We've had more than eight years of a bull market."

What country does he live in?

58 posted on 06/25/2017 9:03:44 PM PDT by <1/1,000,000th%
[ Post Reply | Private Reply | To 1 | View Replies]

To: PGR88

“A government and central bank that can create unlimited debt in a printed currency with manipulated interest rates can pursue any repression and social-engineering scheme it wants.”

Bump


59 posted on 06/25/2017 9:06:05 PM PDT by Carthego delenda est
[ Post Reply | Private Reply | To 38 | View Replies]

To: SkyPilot

“Marc Faber, the editor of “The Gloom, Boom & Doom Report’ and a perennial bear”

as long as he always keeps predicting bear, then sooner or later he’ll probably be right. it might take 10, 20 years, but hey, the guy will be able to claim he’s prescient!


60 posted on 06/25/2017 9:14:09 PM PDT by catnipman ( Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-69 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson