Faber Sees 10% Drop in S&P 500, Says Stocks Expensive
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Marc Faber, who said owning U.S. stocks would prove profitable in March 2009 before the Standard & Poor’s 500 Index began a 91 percent advance, predicted today that the gauge may drop 10 percent because too many investors are bullish.
“A correction is coming,” Faber said in an interview from Zurich with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” “Equities in the U.S. will go down less than emerging markets.” He forecast a drop of as much as 30 percent for equities in developing countries.