Photo: DoomBoomGloom via YouTube
Dr. Doom is back.In a new TV appearance on CNBC India, famed investor and author of the “Gloom Boom & Doom Report” Marc Faber weighed in on where he sees the S&P 500 going next, saying he thought stocks could continue to rally through the summer before the market posts a big decline, maybe after the U.S. presidential elections.
Faber told CNBC:
In the near term, I believe that markets can still rally somewhat for the simple reason that in every market, you have a few strong stocks, and they are breaking out on the upside. Then, you have a lot of stocks that are down 40 or 50 per cent and are very oversold, so they can also rebound…
I think that we may still rally somewhat into August – mid-August, end of August – and then probably we’ll have a tougher second half. In other words, September, October, and November could be somewhat tougher months…
The high was this year on April 4 at 1422. I think it’s possible, based on the few stocks that are strong and the rebound candidates, that we will exceed that high – maybe move to 1450 or even 1500.
However, Faber warned that we’re seeing “essentially a global economy that is slowing down, where corporate profits will rather disappoint than exceed expectations,” which the stock market will catch on to eventually.
When asked where he thought stocks would go during the “tougher second half” he sees this year, Faber replied, “I think these lows could be exceeded and I think it may be October or November – or after the U.S. election – we could essentially have a decline of around 20 per cent in the market.”