Uh-Oh... Faber Sees Market Headed For 1987-Style Crash
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On Monday, October 19th, 1987 the stock market dropped 23 percent in a single day. Marc Faber, economist and publisher of the Gloom, Boom & Doom report, told Bloomberg TV's Betty Liu today that he thinks it can happen again this year.
"People focus on Greece but Greece is completely irrelevant," He said. "What is relevant are two countries -- China and India -- 2.5 billion people combined. They are a huge market for goods and these economies are slowing down massively."
Faber, nicknamed "Doctor Doom", has a reputation for being a contrarian investor. He is famous for advising his clients to get out of the stock market one week before the October 1987 crash, so the fact that he is predicting it again is worth noting.
"The bottom line is I think the market will have difficulty moving up strongly unless we have a massive QE3 . . . and if [the S&P 500] makes the high above 1422, the second half of the year could witness a crash."
"People focus on Greece but Greece is completely irrelevant," He said. "What is relevant are two countries -- China and India -- 2.5 billion people combined. They are a huge market for goods and these economies are slowing down massively."
Faber, nicknamed "Doctor Doom", has a reputation for being a contrarian investor. He is famous for advising his clients to get out of the stock market one week before the October 1987 crash, so the fact that he is predicting it again is worth noting.
"The bottom line is I think the market will have difficulty moving up strongly unless we have a massive QE3 . . . and if [the S&P 500] makes the high above 1422, the second half of the year could witness a crash."
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