Dr Faber predict stock market crash #Stockmarket #nasdaq

Dr Faber is predicting a 1987-type stock market crash this year only it will be worse.

The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011.

Dr Faber, the editor of the Gloom, Boom & Doom Report, has already called for growth stocks to decline this year. He said ridiculous stock valuations were not the crash catalysts, saying the Federal Reserve was also to blame.

“This year, for sure – maybe from a higher diving board – the S&P will drop 20 per cent,” Dr Faber said.

CNBC noted that Dr Faber predicted in August last year a 1987-type crash was looming.

Since then the S&P 500 has risen about 9 per cent.

Mr Grantham said the bust would be particularly painful because “the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets.”They will become cheap again. That’s how we will pay for this. It’s going to be very painful for investors,”

Related Posts

  • 80
    Is there something seriously wrong with the economy? It's a scary prospect, and a concern that's gotten louder and louder over the past year. In economic circles, it goes by the alliterative name of "secular stagnation." And it's a phrase that Fed watchers are likely to hear more and more in the…
    Tags: growth, economy, fed, will, that's, it's, november, market, trading
  • 72
    "The Great Recession--Moving Ahead," a Conference Sponsored by the Swedish Ministry of Finance, Stockholm, Sweden   The Great Recession: Moving Ahead The recession that began in the United States in December 2007 ended in June 2009. But the Great Recession is a near-worldwide phenomenon, with the consequences of which many…
    Tags: will, federal, balance, reserve, board, market, economy, growth, trading, fed
  • 71
    Here they are: the most important charts in the world. A lot has changed since the last time we published this collection back in July. The economic situation in Europe has deteriorated, the unemployment rate in the US has fallen below 6%, and the Fed looks poised to conclude its…
    Tags: time, market, will, fed, economy, s&p, year, trading
  • 66
    On Tuesday, Federal Reserve Chair Janet Yellen promised the House Financial Services Committee "a great deal of continuity" in monetary policy as she fills the shoes of Ben Bernanke.   However, Yellen is not Bernanke. And depending on her read on the economy, she will use her powers to influence…
    Tags: federal, economy, will, market, reserve, fed
  • 64
    At Morningstar, AQR Capital’s leader presents Fama and Shiller’s arguments and says he’s ‘learned to live with my schizophrenia’ “I’m not a super-hardcore efficient marketer,” says Cliff Asness of AQR Capital. Cliff Asness created a “watershed moment in the hedge fund industry” when he brought his sophisticated hedge fund strategies…
    Tags: market, year, trading, economy