Dr. Doom's Back: Marc Faber Warns Markets Will Fall "Like An Avalanche... Trump Can't Stop It"

Tyler Durden's picture

"One man alone cannot make 'America great again'. That you have to realize," warns Marc Faber, the editor of "The Gloom, Boom, & Doom Report," reminding the world that the US stock market is vulnerable to a seismic sell-off that won't be caused by any single catalyst. His argument: Stocks are very overbought and sentiment is way too bullish for the so-called Trump rally to continue.

"Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche," said Faber recently on CNBC's Futures Now. "I would underweight U.S. stocks."

Faber, a supporter of President Donald Trump, isn't blaming the new administration for his bearish forecast:

"Trump, unlike Mr. Reagan, is facing huge, huge headwinds — including a debt to GDP that is gigantic, as it is in other countries."

Faber lists rising interest rates and record earnings and margins as additional risks to the historic rally.

The Dow Jones Industrial Average closed at a record level for a twelfth consecutive session today with the S&P 500 to see the fewest declines in February than in any month since May 1990.

The investor said that markets in Mexico, Brazil, and Asia also have been picking up significant gains so far this year. However, Faber doesn’t expect the worst-case scenario for all countries that have been benefiting from a strong run.

China looks quite attractive. For the next three months, money can flow into China. The economy, surprisingly, has begun to do quite well. We see that in retail in Hong Kong. We see that in the hotel industry, and we see that in demand for commodities,” he said.

Faber says that resource commodities such as copper and gold would probably bring the traders solid profits this year.

“When you look at Trump and his administration, and the way the budget is, I think further money printing down the line is inevitable,” he said, stressing that such a policy could push commodities even higher.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Hulk's picture

I'l go full tilt bozo short the Market if youse guyz and gals go first !!!

Hulk's picture

Even better is the next video up

https://www.youtube.com/watch?v=nAg6ggX6tJ4

This would be us 2 days after shorting the market...

Chris Dakota's picture
Chris Dakota (not verified) Hulk Feb 27, 2017 8:44 PM

Faber is starting to look Asian....lol

The Saint's picture
The Saint (not verified) Hulk Feb 27, 2017 9:29 PM

Well, I have to admit....

A broken clock is smarter and more accurate than Marc Faber.

 

Ms No's picture

You know, if somebody sent Faber's investment letter to the disenchanted snowflakes we might have an epic mass suicide on our hands.... Hmmmm.

They should put a warning on that thing:  "Warning:  Reading this may cause complete loss of faith, paranoia, the inability to make decisions and inevitable hopelessness and suicide."

masons's picture

hulk with no balls :)

Hulk's picture

he dont have a pee pee either ...

Zorba's idea's picture

I recall from early college econ course that a finacial market assumes there are "fungible items of value"...we have extended this definition quite a bit with lots of storm clouds gathering over the oceans of debt.  The Feds have overmedicated the markets to say the least and Janet appears intent on rubbing out a few rate hikes...not good, not good. For what its worth, my guys have been following the FED, its been their show for a while

abyssinian's picture

I love Marc and all that, but I am still waiting for the last two crashes that he told us about and left bloody shorting the market. 

WakeUpPeeeeeople's picture

He has predicted three of the last two crashes.

BeanusCountus's picture

Even though something is inevitable, doesn't mean it's imminent. He's no idiot. Sees what is happening around the world firsthand (okay, maybe "secondhand" in Thailand). Look, we all know things are a bit artificial in terms of vals. That's his point.

Tiwin's picture

I already did. My puts are worth 2 cents on the dollar I paid.
Still got till April tho....hopium pipe full....aint working.

Scuba Steve's picture

Selling Puts on the Silver miners ... send it down Bitchezz, Papa needs a new pair of Shoes.

scoutshonor's picture

I'm paid up through June ;-)

illuminatus's picture

I almost believe Marc now. Wish I would not have 6 years ago.

YourAverageJoe's picture

Me too.

 

He and Porter Stansberry all all in the Doug Casey club.

Bigly's picture

What goes up, must come down....

Dow 7,000 *

 

*but WHEN?

1980XLS's picture

"Timing is everything"

francis scott falseflag's picture

 

(gazing into crystal ball)  

I see many nuclear missiles flying latitudinally. Now things are clouding over.

That's all.

lester1's picture

This Obama-era doom and gloom seriously needs to stop. There's no reason for stocks to go down.

 

I suggest Mr Faber do some research on PPT and ESF !!

Son of Captain Nemo's picture

Well NO SHIT Marc!

And neither could Obama. The "Temple" has been rupturing and falling into pieces for 8 years which is WHY Trump is being told he needs to start a war in order control 900+ military installations Worldwide that it couldn't control after 2007!!!

In short...

IT'S BEEN OVER since the bailouts. The "sheeple" just haven't figured it out yet!

BigFatUglyBubble's picture

I am going to collect sheeple tears in a chalice and sup to my hearts content.

boattrash's picture

Way OT but damn....

I'm gonna continue to rail on my no-account congress critters. These motherfuckers want to investigate the Trump/Russia Connection, yet they are motherfucking silent on this shit. Where's my motherfucking anti-aircraft gun? Hey D. Issa, suck my dick!

You've gotta see this link...This is what these SOB's should be investigating...damn them all to hell! These are the SOB's that tried to leave a trail to the "Russia Connection" (along with the deep state motherfuckers that need to receive the cannon).

http://dailysignal.com/2017/02/21/house-democrat-aides-got-100k-from-mys...

JailBanksters's picture

Until then ...

Onward and Upward DOW to 33,666

 

 

SgtShaftoe's picture

They could print with abandon (inflation already moving) and that could give a stock market of 50,000 in nominal terms. The Zimbabwe stock market did quite well in nominal terms (in real terms not so much).

Yen Cross's picture

   That was kind of a wierd interview. China is fucked sideways, and you'ld have to be retarded to invest, in that giant Ponzi scheme.

 This shit is beyond surreal...

  People are so fucking stupid. Trump opens his mouth[ about nothing factual or rational regarding timelines] and the Potempkin Village jumps into the empty pool, head first.

BlueHorseShoeLovesDT's picture

Trump had some help from Warren "buy stawks now!" Buffet

Davidduke2000's picture

Nobody can stop the crash, Trump or the entire congress. They had a chance to blame it on obama, they went the wrong way, now they own the market.

francis scott falseflag's picture

"The markets will fall"  "

 "Trump Can't Stop It"

 

BUT THE FED CAN

BorisTheBlade's picture

At the cost of owning just about everything and expanding their balance sheet to a circa 10^20 USD, sure. Sad thing there won't be any markets to speak of.

francis scott falseflag's picture

 

Actually, there are no markets now. 

JUST THE GIANT AMERICAN PONZI SCHEME AT WALL AND BROAD.

balz's picture

Eventually he will be right. But in between, we could see Dow 30,000...

GRDguy's picture

Venezuela is already past 30,000, and look how the average citizen gets by.

yogibear's picture

LOL, not for  a while. The Wall Street algos keep closing new highs daily.

Start the day lower to pull in the shorts and then ram it higher at the close.

MASTER OF UNIVERSE's picture

How Extreme Inequality Causes Economic Collapse Naked Capitalism 2017/02/18

 

http://www.nakedcapitalism.com/2017/02/extreme-inequality-causes-economi...


luna_man's picture

 

 

I'm going to add to my "short" positions regardless...I'm gonna be RICH I tell'ya!

BlueHorseShoeLovesDT's picture

Neither the Republicans or the Democrats care if Trump ends up holding the bag

Jack.Lincoln's picture

If the US government was in flames, how would the stock market respond. Up or Down?

Washington is burning...

InTylerWeTrust's picture

Stocks may rise and fall, utilities and transportation systems may collapse. People are no damn good, but they will always need land and they will pay through the nose to get it. Remember... land.

illuminatus's picture

Is that where the saying ' he bought the farm' comes from?

Lostinfortwalton's picture

Doing the announced budget cuts and NOT goosing the military budget, but cutting it as well, just might start to right the ship.