Thursday, October 4, 2012
Marc Faber Sees Major Stock Correction Coming
In an interview on the FuturesNow program, Marc Faber, who is author of the Doom Boom & Gloom report, said investors need to prepare for a huge drop in the market in the near future, which will provide a great buying opportunity for those who are ready for it.
Faber said, "I have a lot of cash at the moment, because on this rally since April I have been lightening up on positions."
Following on the footsteps of an accurate call in the early part of June that it was time to acquire equities, specifically those that had good dividend yields, where the Standard & Poor's 500 has jumped close to 14 percent since that time, Faber now tells investors they need to consider reversing those positions, saying he is now heavily in cash in anticipation of the downturn.
"Unfortunately I have a lot of dollars. I just want to have a lot of cash because I think that within the next six to nine months we can buy just about anything 20 percent lower than it is now," Faber noted.
Recently Faber said the U.S. economy has a 100 percent chance of going into a recession.