Faber: S&P to Crash 50%

Marc Faber said on CNBC’s Trading Nation that the stock market could “easily give back five years of capital gains, which would take the market down to around 1100.” Getting to 1100 from the S&P 500’s Friday, August 12, 2016 close at 2184 would require a 50% crash.

It’s not clear what has Faber so bearish in this latest warning from him. When pressed for reasons, he said “you never know exactly why this will happen” and added that recent gains are unsustainable. Finally, he elaborated: “The fact is, the market hasn’t really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It’s not that many stocks that have been making new highs. It’s quite a narrow group of stocks that have been very strong.”

— Excerpt contributed by Jason Kelly

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Z-val: Marc Faber
Via: CNBC
Date: 8/9/16
Disposition: Short-Term Bearish
S&P 500 on 8/9/16: 2182
S&P 500 on 11/9/16: 2163
Change: -0.9%
Judgment: Wrong

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