Marc Faber is still bearish.
In a CNBC interview on Monday, the editor and publisher of the “Gloom, Boom & Doom Report” spoke on why he sees a 50% drop in the S&P 500 coming, and why he likes US Treasurys right now.
Faber said stocks have rallied because of the easy monetary policies of central banks around the world that have increased the flow of money.
“When you print money, something goes up,” Faber said about the stock market.
“The real economy in the world is not doing well.”
And with the S&P 500 again hitting new highs seven years into the bull market, Faber is calling for a 50% crash.
“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” CNBC wrote.
The benchmark index closed down 0.13% at 2,180.10 on Monday.
Faber said he owns some stocks, which make up 40% of his portfolio together with emerging-market bonds.
His portfolio is also diversified with precious metals like gold and silver, which have gained 25% and 41% this year, respectively.
Treasurys have also had a big year, and Faber said US bonds are still one of the relatively good buys out there.
“I can buy a 10-year US treasury at the yield of say 1.58% today, rather than having a negative yield of the 10-year Swiss franc bond or Japanese bond. So they’re not attractive as an investment — Treasurys at this stage, but compared to cash and other sovereign bonds, they are.”
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