Tags: Marc | faber | crash | sell

Faber: U.S. Market Won't Crash, But I'd Sell Anyway

Friday, 26 Mar 2010 02:06 PM

Investors don’t have to worry about another stock-market crash, says Marc Faber, editor of “The Gloom, Boom and Doom Report.”

Faber says that for the short term, investors should be getting ready to sell. “I would rather be lightening up on positions in the next couple of weeks than heavily buying right in here,” he said.

Faber recently told Yahoo TechTicker that he believes that “great valuations” are no longer available in the market compared to a year ago.

The markets also are showing less “upside potential,” Faber said.

Mike "Mish" Shedlock, investment adviser at SitkaPacific Capital Management, says there is only a 20 percent chance the market will continue its rise.

Shedlock predicts there is a “50-50 chance the bottom is not in yet.”

He said there is also a chance the market will perform “sideways” for the next five years.

Faber advises that investors take a look at Japan because the country’s 20-year bear market resulted in a lack of interest from investors and undervalued stocks.

However, Faber said he disagrees with Shedlock about the future of the market.

“I don’t think that we will see 666 on the S&P 500 ever again,” he said.

If the S&P 500 declines by 10 to 20 percent, “our money printer in the U.S., Mr. Ben Bernanke, is going to flood the system with liquidity,” Faber predicts.

In that scenario, the market will see a weakening of the dollar again while equities and other assets are supported, he said.

Since gold “in general can outperform equities,” Faber said that investors should purchase gold monthly.

Shedlock said investors should refrain from buying anything and advises even sticking with just cash or purchasing U.S. Treasuries for only the next year or so.

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Investors don t have to worry about another stock-market crash, says Marc Faber, editor of The Gloom, Boom and Doom Report. Faber says that for the short term, investors should be getting ready to sell. I would rather be lightening up on positions in the next couple of...
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2010-06-26
Friday, 26 Mar 2010 02:06 PM
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