Sunday, January 12, 2014

Marc Faber Warns: ‘Market Has Peaked Out’

If the stock market continues to climb into July or August, a crash is possible, says Marc Faber, publisher of the Gloom, Boom & Doom Report.

The stock market has "peaked out" and bonds may be on their way to a rebound, Marc Faber, publisher of the Gloom, Boom & Doom Report, said Thursday on CNBC. "I think we have made an intermediate top, and it could be a longer-term top," he said on "Fast Money."


"I don't think the market is as overbought as it was in '87, so I don't expect a crash. But I think for the time being, the market has peaked out, and I think in the meantime, bonds, which are extremely oversold, could rebound," he said. The S&P 500 closed at 1,502.52 Thursday. A level of 1,530 could prove to be a longer-term high, Faber said.


"But I think that the market has now become quite overbought and that is very significant or overextended, bullish sentiment. Everybody says, 'Sell bonds, buy equities.' And when everybody thinks alike, one has to be careful."

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