LewRockwell.com
ANTI-STATE•ANTI-WAR•PRO-MARKET
'This will be the Worst Since '87'
Man who predicted 1987 stock market crash and the Great Recession claims another crash is months away
By John Hall
Daily Mail
Daily Mail
April 12, 2014
Dr Marc Faber, a Swiss investor and the author of the Gloom,
Boom & Doom Report, said the cause of the crash would be overvaluing
of companies within the internet and biotechnology sectors – thought to
include the $400billion valuation of Google, and the $100billion
valuation of Facebook.
He also said the market was also beginning to wake up to the idea that the U.S. Federal Reserve is a ‘clueless organisation’ – something he says is starting to affect confidence levels in investors.
Speaking to CNBC last night, Dr Faber said: ‘I think it’s very likely that we’re seeing, in the next 12 months, an ’87-type of crash’… and I suspect It will be even worse.’
His comments came as the Nasdaq suffered its biggest drop in two-and-a-half years after another sharp selloff in biotechnology businesses – including Gilead Sciences and TripAdvisor.
The Nasdaq biotechnology index shed 5.6 per cent of its value – its biggest one-day drop since August 2011 – increasing investor anxiety about a broader pullback in technology businesses.
Speaking of overvaluations in the technology sector, Dr Faber told CNBC’s Futures Now programme: ‘I think there are some groups of stocks that are highly vulnerable because they’re in cuckoo land in terms of valuations.’
‘They have no earnings. They’re valued at price-to-sales. And this is not a good metric in the long run,’ he added.
He also said the market was also beginning to wake up to the idea that the U.S. Federal Reserve is a ‘clueless organisation’ – something he says is starting to affect confidence levels in investors.
Speaking to CNBC last night, Dr Faber said: ‘I think it’s very likely that we’re seeing, in the next 12 months, an ’87-type of crash’… and I suspect It will be even worse.’
His comments came as the Nasdaq suffered its biggest drop in two-and-a-half years after another sharp selloff in biotechnology businesses – including Gilead Sciences and TripAdvisor.
The Nasdaq biotechnology index shed 5.6 per cent of its value – its biggest one-day drop since August 2011 – increasing investor anxiety about a broader pullback in technology businesses.
Speaking of overvaluations in the technology sector, Dr Faber told CNBC’s Futures Now programme: ‘I think there are some groups of stocks that are highly vulnerable because they’re in cuckoo land in terms of valuations.’
‘They have no earnings. They’re valued at price-to-sales. And this is not a good metric in the long run,’ he added.
LRC Blog
- “Pings of Mass Distraction”?
- Michelle Obama Must Be Outraged . . .
- He Should Have Joined the CIA
- Without Republicans, There Would Have Been No Kathleen Sebelius
- Congressman Who Sought a Pay Raise Gets an Earful
- And Some People Are Worried about Marijuana?
- Military Child Killers
- A Sobering Question
- This Morning’s Live Video: Inflation’s Causes, Consequences, and Cure
- My Son Fights for Our Freedom
Podcasts
- Bill Sardi: Defending Health Against the Government
- Lew Rockwell: the NY Times Doesn’t Like Me
- Lew Rockwell: The Truth Shall Make Us Free
- Ralph Weber: Against Fascist Healthcare
- John Denson: My Two Famous Cousins in WWII
No comments:
Post a Comment