Tuesday, June 4, 2013

Dr. Gloom and Doom Marc Faber: Don't Bet on New Market Highs

Marc Faber explains why he believes U.S. markets have far more downside risk than is perceived by investors.  The market is likely to head higher in the near term, but new highs can't be trusted, said Marc Faber, the contrarian investor and publisher of the Gloom, Boom & Doom Report.

In an interview Tuesday, he also told CNBC's "Squawk on the Street "there's "no exit" from the Federal Reserve's bond-buying program.

"Very near term, we are a bit oversold and we may rally back to around 1,660-1,670 on the S&P," he said. "On the backs of Intel,Microsoft and IBM we can make a new high. But the new high would not be confirmed by the majority of shares. I think the market is actually quite vulnerable."

"I think the market is rolling over," he said, pointing to the sharp drop in some international markets in recent weeks.

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