Monday, April 8, 2013

Dr. Gloom: Market Crash Likelihood Goes Up If Stocks Continue to Rally




Marc Faber, Gloom Boom & Doom Report editor, reveals his bleak outlook on the markets this summer; and explains why events like Cyprus are likely to happen in more countries.
In the near-term, the U.S. stock market is overbought and adding that any more near-term gains portend big trouble for the market, "The Gloom, Boom & Doom Report" publisher Marc Faber told CNBC on Monday,

"If we continue to move up, the probability of a crash becomes higher," Faber predicted in a "Squawk Box" interview, saying it could happen "sometime in the second half of this year."  By his calculations, Faber said the bull market began four years ago with important stocks recently "breaking down," such as Oracle and FedEx. "Can we go up just on a few stocks like Johnson & Johnson, Procter & Gamble, Wal-Mart, and so forth?" he asked and answered: "Possibly."

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