Surprise! Mr. BoomGloomDoom sees doom… or at least a 20% decline in equities.
Faber predicted at the beginning of March a 20 per cent decrease if the index reached a new high. The S&P 500 has tumbled 11 per cent since reaching 1,217.28 on April 23, the strongest level since the days after the September 2008 bankruptcy of Lehman Brothers Holdings Inc. Faber advised investors to buy U.S. stocks on March 9, 2009, when the index reached its lowest level since 1996.
“The market became very overbought in mid-April,” Faber said in a Bloomberg Radio interview today with Tom Keene. “The S&P could still decline by another 10 per cent, maybe 15 per cent.”