Faber is predicting a 20% drop in the market this year. Some will call this a market correction while others like Glenn Beck, who has been warning about our economy coming apart, will call it an “”economic impact” leading to “mass chaos” and “lynchings””!
No one really knows but fact of the matter is this record high stock market has been created by the Federal Reserve pumping too much money into the money supply. Look at it this way if the economy is truly booming and in a recovery like the imperial emperor claims then why is unemployment so high? Why is the number of people on food stamps at a record high? Go read all the economic news I have posted on a daily basis and tell me we are fine and not in a stealth depression!
We’re definitely headed for trouble in the markets whether it happens this year like Faber warns or in a few years. Sooner or later the duct-tape holding our economy together is going to give.
Marc Faber: Look out! A 1987-style crash is coming
By: Alex Rosenberg | CNBC
The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem?
The market ended up tanking in the second half of that yearâ€”dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.
And Marc Faber, publisher of the Gloom, Boom & Doom Report, predicts that the very same thing will happen in the back half of 2013.
“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber said on Thursday’s “Futures Now.” “The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks.”..more