Tags: Marc | Faber | Stocks | Sell

Faber: Sell Stocks Now Since Market to Only Keep Sliding

Friday, 26 Feb 2010 11:13 AM

Stock prices will finish 2010 somewhat lower than where they began this year, says investment guru Marc Faber.

Faber told investors to buy stocks in March of last year, right when the Standard & Poor’s 500 Index reached its lowest level since 1996.

Since then, the S&P 500 rallied more than 60 percent and the Dow Jones Industrial Average gained 59 percent thanks to government stimulus programs.

Now it's time to sell, Faber says.

“I would look at the market to close probably a bit lower than it started the year in 2010,” says Faber, according to Bloomberg.

“Equally, I don’t think we have a huge downside risk. If the Dow and the S&P dropped, say 15 to 20 percent, in other words the S&P towards 900, I think there would be more stimulus and more quantitative easing.”

Stimulus money has sent stock prices rising over the past year, but unemployment remains high at 9.7 percent.

While the country is officially out of the recession, jobless rates make it seem to many that the economy is still contracting.

A survey by Coldwell Banker Real Estate shows that more and more U.S. families from different generations are living under one roof because they cannot afford to live on their own.

Thirty-seven percent of the company's real estate agents polled in January said that in 2009, more buyers were shopping for homes that fit more than one generation, adding the trend should rise.

“More buyers are pooling investments, considering bringing mom and dad into it,” Diann Patton, a Coldwell Banker real estate consumer specialist, tells Reuters.

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