Marc Faber, publisher of the Gloom, Boom & Doom report, said markets are “extremely oversold” and he expects a “snap-back” rally in the U.S. Standard & Poor’s 500 Index of about 40-50 points.
The investor doesn’t see new highs in 2011, Faber said in an interview with Bloomberg Television. The S&P 500 Index slumped 60.27 points, or 4.8 percent yesterday, to 1200.07. The percentage drop was the biggest retreat since February 2009, as concern the global economy is weakening prompted a global rout.
An index of global stocks entered a so-called correction yesterday, falling more than 10 percent from this year’s high, amid a seven-day sell-off that wiped out more than $4.4 trillion from market values worldwide.
Asian stocks fell today by the most since March, the New Zealand dollar weakened for a fifth day, while oil and wheat paced losses among commodities. The MSCI Asia Pacific Index sank 3.3 percent, the biggest drop since March 15.
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