Well known economist Marc Faber, who predicted the crash of 2008 and
its subsequent rally to new highs, says that stock
markets are once again set for a massive collapse. Doctor
Doom, as he’s affectionately known around the world for his contrarian views,
echos the sentiment of forecaster Harry Dent, who recently said that stocks could drop as much as 70% and throw America into
a new Great Depression.
As Faber’s moniker implies, destruction and calamity are in our
future. And though his forecast is not as grave as Dent’s, Faber still thinks
that a 50% crash in stock market capitalization is a real possibility.
The coming drop in equities, however big it will be, could be one of the
greatest stock market crashes in history, according to Faber.
I think we can easily give back five years of capital gains, which would
take the market down to around 1,100…
The fact is, the market hasn’t really been driven by genuine
buying, but by stock buybacks, takeovers and acquisitions, and
market leadership has been narrowing. It’s not that many stocks that have
been making new highs. It’s quite a narrow growth of stocks that have been
very strong.
I have seen repeatedly in my life where markets have dropped 40%
or 50%… And in some cases I have seen the market like the Dow Jones drop 21%
in one day…
So many things can happen…
Faber has previous warned of widespread collapse around the world and has
recommended owning physical assets like gold and farmland,
going so far as to suggest that when the crash comes it could completely destabilize the system as we know it:
Faber has an interesting suggestion for investors if the plunge
comes to pass.
With tongue apparently in cheek, he says buy a farm you can tend
to yourself way out in the boondocks. And protect it with high voltage
fences, barbed wire, booby traps, military weapons and Dobermans.
If markets do, in fact, collapse 50%, then something has gone terribly
wrong. As Greg Mannarino pointed out, the collapse of this massive debt
bubble could lead to the deaths of millions of people globally as the system
unwinds.
Thus, preparing for
economic disaster or other calamity is perhpas the most important
diversification strategy one can engage in at this time.
Related:
Analyst: “Millions Upon Millions of People Are Going to Die
on a World-Wide Scale When the Debt Bubble Bursts”
“You Can’t Listen To Your Damn Stock Broker” – Forecaster
Warns Of 70% Stock Market Crash And New Great Depression
Jim Willie: Dollar Destruction “Will Send Shock Waves
Throughout The U.S.”
As Venezuelan Hunger Crisis Worsens, Zoo Animals “Slaughtered
For Meat”
“If You Want Trump To Win, You Should Root For Stock Market
Crash Before November”
