Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a700748
Time to sell US stocks as Faber fears the S&P will falter
by Sarah Miloudi on Sep 04, 2013 at 13:48
Dr Doom Marc Faber has predicted a sharp decline in the S&P 500 that will take it back to last November's low.
Faber is known for predicting the October 1987 stock market crash and believes investors would be better off selling than buying American equities.
'In my view, we will go back to the lows in November 2012 - around 1,343,' he predicted, in a video interview with CNBC.
The index closed at 1,639 yesterday, around 18% higher than Faber's forecast.
The esteemed strategist said he has predicted the decline because he can see the US following a similar downward path to the emerging markets, and believes investors should now reconsider buying highly valued American stocks while emerging market equities are much cheaper.
Faber said: 'When emerging markets go down and the S&P goes up, the asset allocators say "do I want to buy the S&P near a high or do I venture back to emerging economies that are down 50% from their highs, like Brazil or India?"
He added: 'You need to understand that the pool of money can flow back into emerging markets.'
News sponsored by:
Today's top headlines
More about this:
On the road
on Dec 10, 2013 at 12:57