Marc Faber Turns Bullish on Stocks Short Term

Monday, 11 Aug 2014 10:07 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
For months Marc Faber, publisher of the Gloom, Boom & Doom Report, has predicted that stocks will plunge.

But now he's changed his tune, at least slightly. Faber tells CNBC that stocks already have begun to bounce back from a "fully oversold" position.

"We had a significant correction in many shares. And as of Thursday night's close, the markets on a very short-term basis were extremely oversold, with only 20 percent of shares above their 50-day moving average," he notes.

Editor’s Note:
Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now


The S&P 500 closed Thursday at 1,909.57, down 4.1 percent from its July 24 record high. The index stood at 1940.27 Monday morning.

"Now a rebound is underway in my opinion," Faber argues. But he warns against expectations of an explosive rally. "I doubt we will make new highs. And if we make new highs, it may be just with a very limited number of shares, because the technical damage is quite significant."

For the long term, returns will be limited because valuations for stocks, bonds and real estate are "inflated," he explains.

"I think the returns will be disappointing."

While the markets haven't reacted much to new developments in Iraq, that could change, Faber states. "If ISIS makes a move on Saudi Arabia, then markets will react slowly."

Meanwhile, individual investors appear to be growing worried about the stock market.

An American Association of Individual Investors survey of its members for the week ended Aug. 6 shows that 38.2 percent of them have a bearish view of the stock market for the next six months. That's the highest level since last Aug. 22 and is up from 31.1 percent a week ago.

A total of 30.9 percent of investors are bullish.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

El-Erian: Global Economic Slowdown Remains a Concern

Saturday, 25 Oct 2014 11:55 AM

While the U.S. stock market may have rebounded sharply from its recent plunge, that doesn't mean all is hunk dory with t . . .

Kudlow: Obama's Head Will Spin From New Conservative Agenda

Friday, 24 Oct 2014 21:35 PM

The vast majority of political journalists , and I include some of my conservative colleagues , are missing a very big s . . .

Stocks Rise on Earnings, S&P 500 Caps Best Week Since 2013

Friday, 24 Oct 2014 17:09 PM

U.S. stocks rose, with the Standard & Poor's 500 Index capping its best week since 2013, as companies from Procter & Gam . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved