1. After Jim Rogers, Marc Faber predicts a severe stock market crash

After Jim Rogers, Marc Faber predicts a severe stock market crash

After Jim Rogers, who co-founded the Quantum Fund alongside George Soros, predicted that the “biggest crisis in his lifetime” is less than a year away; Marc Faber says that the US stock markets could correct by as much as 30-40%.

By: | Published: October 1, 2017 11:39 AM
Both Jim Rogers and Marc Faber say that the US stock market is headed to a severe crash. (Image: Reuters)

Marc Faber, popularly known as Dr Doom has predicted that the US stock markets could correct by as much as 30-40%. In an interview to CNBC last week, Marc Faber said, “ You don’t see it. I don’t see it and nobody sees it. That’s why people continue buying stocks. Yet something will happen one day.” Explaining what may cause the plummeting of stocks he said, “It may come from a credit event, or a disclosure of a major fraud, or it may come because interest rates start to go up, although central banks remain on the dovish side. There are many small events that can trigger the decline.”

Explaining why he predicts an impending doom, Marc Faber said that even though corporate profits have been expanding and interest rates remain low in the United States, as opposed to 2009, the valuations are very high. “Hardly anywhere in the world valuations are low. Stocks as well as bonds are fully priced,” he pointed out.

Just last month, Jim Rogers, who co-founded the Quantum Fund  alongside George Soros, predicted that the “biggest crisis in his lifetime” is less than a year away. In an interview to Kitco news, Jim Rogers said, “We could see the worst crash in my entire life pretty soon.” Jim Rogers went one step ahead to say that it would be ‘bizarre’ if there wasn’t a problem. “We’ve had economic problems in the US, in North America, every four years since the beginning of the republic, to say that we’re going to have a problem is not unusual,” Jim Rogers had told in the same interview to Kitco. Jim Rogers observed that the 2008 financial crisis was caused due to a rise in debt, and since then the debt has gone through the roof. In fact, Alberto Gallo of Algebris Investments, in a blog written in July this year noted that global debt levels have almost quadrupled, rising 276% in the last decade to $217 trillion.

Just like Jim Rogers, Marc Faber is betting on precious metals. Marc faber said, “Relative to everything else, I think precious metals are not terribly expensive. I think agricultural commodities are inexpensive,” he told CNBC last week. Jim Rogers, sometimes referred to as ‘Commodities Guru’, believes that gold prices are likely to skyrocket, in view of the impending meltdown. He observed that people have always turned to gold in the face of crisis and this time around it’s not going to be any different. In the same conversation with Kitco, he said, “Gold is going to be explosive in the next few years.”

  1. jack e
    Oct 10, 2017 at 2:41 am
    YAWN! “It may come from a credit event, or a disclosure of a major fraud, or it may come because interest rates start to go up, although central banks remain on the dovish side. There are many small events that can trigger the decline.” Wow, he's really going way out on a limb there. All these doomsday-ers have been warning the sky is falling forever. If they live long enough they might eventually be right but they're hardly prophetic. If anything they've figured out what the lame stream media mastered long ago...bad news sells. Rogers obviously hitched his train to gold a long time ago and continues to make it his hill to die on. We'll eventually see who dies first.
    Reply
    1. Don Duncan
      Oct 9, 2017 at 11:27 pm
      Every crash is followed by "business as usual", i.e., the same economic fundamentals, a bounce back, and silence by the "doom/gloom" guys. Then, after a while, they begin again to warn. But cycles will always exist. Playing them requires understanding how to time money movements. Do the "prophets of doom" explain that? No. So, they are as helpful as "prophets of plenty". But doom sells better. It might have something to do with our subconscious fear of death, or awareness of it.
      Reply
      1. F
        Fred
        Oct 9, 2017 at 3:49 pm
        I predict that things will continue as they are now unless they change.
        Reply
        1. W
          webindra
          Oct 1, 2017 at 6:58 pm
          y it wouldnt? wen investments hav been for trivial factors but not for the ones which sustains market..i cant make out most of stock market..except basics. surely can i say its valuation system are not economy dynamic but com tional mostly with the vested interests of majors.so partly its a game. thinking all dis reminds exchange value driven stock market and economy of socialism. wat is sold wen buyers struggle to buy..wat is upgradable wen previous has not given due returns. so the pseudo stock markets may collapse from time to time under current economy models worldwide. india sud ssafe guard its interests. And dese policy makers nd hypothesis talkers wat comes and goes for dem. Increased are struggles of lives..nothing happening for growth of everyone. but dei say much for the sake of trying new only! Decreased are affordabilities. wat is deir requirement?
          Reply
          1. C
            canadianmgtow
            Oct 2, 2017 at 10:00 pm
            Seriously, speak ENGLISH. Are you from the Hood?
            Reply
            1. Donald Foster
              Oct 10, 2017 at 9:36 am
              Ure Enrish suuuuucks.
              Reply
            2. H K Doshi Doshi
              Oct 1, 2017 at 1:09 pm
              They all warn all retail investor but do not say what their fund managers are doing. Is it style of fake news to manipulate market at their wishes.
              Reply
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