Faber: Stocks Headed for ‘More Serious’ Tumble

Monday, 09 Apr 2012 08:08 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Stocks are due for a major correction, possibly headed for a more prolonged bear market, says Marc Faber, publisher of the Gloom, Boom and Doom report.

The global economy remains weak and cannot support strong gains posted in recent months.

"The technical underpinnings of the market have been a disaster in the last couple of weeks," Faber tells CNBC.

Editor's Note: Obama’s Economic ‘Fix’ is In . . .

"The number of new highs have declined, the volume has been poor, insider sales just hit a record."

The Bureau of Labor Statistics reported recently that the U.S. economy added a net 120,000 jobs in March, well below expectations.

The weak jobs report could prompt the Federal Reserve to intervene and stimulate the economy by injecting liquidity into the financial sector, which Faber says could keep stocks up for a while.

But Fed support won't last forever.

"I still feel we are in a correction period and again like in equities, it’s a correction that is somewhat more serious."

Corporate earnings have been strong in recent months although that trend should taper off.

Faber said the weakness in economically sensitive stocks such as mining and industrial goods was particularly “disturbing.”

A Standard & Poor’s Capital IQ survey is predicting profits to rise 0.93 percent in the first quarter of 2012 from a year earlier, according to the New York Times reports, well below a 19.68 percent growth rate seen in the first quarter of 2011.

"It is the lowest quarter of growth we have seen since the third quarter of 2009," Christine Short, senior manager for S&P Global Markets Intelligence, tells The Times.

Editor's Note: Obama’s Economic ‘Fix’ is In . . .


© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink

 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Facebook
Twitter
Google Plus
You May Also Like

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