Marc Faber again makes pessimistic forecasts, writes MarketWatch. , Known as Dr. Doom, author of The Gloom, Boom & Doom Report, warning investors to prepare for a drop in the markets of 20% or more by the end of 2014.
"In 1987 we had a significant increase in stock prices. Profits, however, did not grow at a stable rate. Markets were overvalued. There was a sharp decline, and on August 25 was the last day on which a large number of shares registered 52-week low. In other words, the number of shares that rose, curled up and saw a number of disruptions to trade with different shares, "said in an interview with CNBC Marc Faber
October 1987 was a period that investors can not so easily forget. YTD broader index S & P 500 added 20% to its value. Faber comparison with 1987, when the market grew by 30% at the same time of year.
On October 19, 1987, the day known as "Black Monday", S & P 500 index dropped sharply by 20%. This event remains forever in the history of Wall Street as the biggest loss suffered in exchange for one day. It was the end of five years-long period of appreciation of the shares.
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