Video: Dr. Doom Marc Faber Forecasts 50% Crash in Stock Markets: “We Can Easily Give Back Five Years Of Capital Gains”

by | Aug 9, 2016 | Howard Katz, Marc Faber | 51 comments

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    Well known economist Marc Faber, who predicted the crash of 2008 and its subsequent rally to new highs, says that stock markets are once again set for a massive collapse. Doctor Doom, as he’s affectionately known around the world for his contrarian views, echos the sentiment of forecaster Harry Dent, who recently said that stocks could drop as much as 70% and throw America into a new Great Depression.

    As Faber’s moniker implies, destruction and calamity are in our future. And though his forecast is not as grave as Dent’s, Faber still thinks that a 50% crash in stock market capitalization is a real possibility.

    The coming drop in equities, however big it will be, could be one of the greatest stock market crashes in history, according to Faber.

    I think we can easily give back five years of capital gains, which would take the market down to around 1,100…

    The fact is, the market hasn’t really been driven by genuine buying, but by stock buybacks, takeovers and acquisitions, and market leadership has been narrowing. It’s not that many stocks that have been making new highs. It’s quite a narrow growth of stocks that have been very strong.

    I have seen repeatedly in my life where markets have dropped 40% or 50%… And in some cases I have seen the market like the Dow Jones drop 21% in one day…

    So many things can happen…

    Faber has previous warned of widespread collapse around the world and has recommended owning physical assets like gold and farmland, going so far as to suggest that when the crash comes it could completely destabilize the system as we know it:

    Faber has an interesting suggestion for investors if the plunge comes to pass.

    With tongue apparently in cheek, he says buy a farm you can tend to yourself way out in the boondocks. And protect it with high voltage fences, barbed wire, booby traps, military weapons and Dobermans.

    If markets do, in fact, collapse 50%, then something has gone terribly wrong. As Greg Mannarino pointed out, the collapse of this massive debt bubble could lead to the deaths of millions of people globally as the system unwinds.

    Thus, preparing for economic disaster or other calamity is perhpas the most important diversification strategy one can engage in at this time.

     

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      51 Comments

      1. Anonymous

        He said the same BS 10 years ago. Let’s get real news.

        • nunyaBidness

          and was right, 10 years ago. WTH hell do you think this site is about?

          • buttcrackofdoom

            yes, he was RIGHT ten years ago, but instead of continuing DOWN to a level commensurate with the EARNINGS companies are getting, it turned right around and made new highs….this time it won’t be going up again for a LOOONG time. i was in the markets for 25 years or so, but the markets got ahead of themselves,…..just like he points out so eloquently…so now it’s so overpriced, only a fool would put money in there…..this IS the moment we been preparing for….and this moment in time is the REASON we have a second amendment….it’s AAAALLL rigged….EV-ER-Y-THING! and if you won’t listen to great advice, why are you(not you, nunya) HERE.?? the FED did it, and they aint done yet, but it WILL all come crashing down….but we can’t know what tricks the FED’s got up it’s sleeve to keep this going…but sooner or later, they will find out they don’t have the control they thought they had….just be thankful for the extra time given to be ready for it….better be PREPPIN’ like a muhfugguh!

            • hammerhead

              Yep , me , im gettin ready for another housing bubble to pop.
              Its comeing , and everyone in the industry knows it .
              No secrets here .
              Cheap mortgage rates because of the fed have driven another bubble to form. poppin soon .
              Getting prepared to spend 2017 in a lawn chair !
              Wealthy people who pay attention are draggin money out and wanting crazy new homes or renovations , just for a place to stash the cash.
              High times wont be back for awhile , for sure.

            • KnowingIsHalf

              Speaking of the 2nd, a broadcast came out last Thursday where it was reported the AG of several East Coast States along with some alphabet fed agencies, had a conference about confiscation – door to door style (using local police). Since the conference was ‘open’ others with access to the channel could listen in. Apparently the video conference was recorded and is being distributed primarily in those areas as a heads up to the unfortunate ones that would have to go door to door. I’ve not seen the actual footage myself…but I’m sure it will surface for us “little folk” sooner or later.

              Looks like the “you know who’s” are gearing up for a Hillary presidency…

        • Braveheart1776

          Michael Snyder’s brother again? HO HUM, I’m going back to sleep.

        • Anonymous

          Seems like everything but the economy has been talked about as of late. I find that quite odd.

        • Shootit

          Let me explain. QE(quantitative easing) over the last 5 has been the electronic printing of debt notes(dollars). This electronic “money” has been used to prop up the stock market. Look at historic P/E of companies compared to today. A real problem!

          The FED has not printed paper debt notes and circulated them. There is actually fewer dollars circulating. If they had put paper in circulation we would currently living in Venezuela North.

          The stock market should drop by the amount of “electronic wealth” created by the Fed. I don’t have time to look up the number, but 50% could be close.

      2. john stiner

        Everybody always starts these articles by saying they predicted the crash of 2008.

        Well, here is a prediction: The stock market will crash in the future.

        There, now when it crashes in the future i will be an expert too.

        • durangokidd

          A drop of 50% would be the minimum in a real SHTF. Declines usually EXCEED on the downside just like Bull Markets EXCEED on the upside.

          In a downward spiral gravity feeds upon itself, exacerbating the trend. Once that trend is clearly down there is no stopping it until it bottoms.

          Finding equilibrium could be a protracted process this time around. 🙁

        • buttcrackofdoom

          we ALL know it’s gonna crash, so i guess we are ALL experts. the question is, are you READY for it….only time will tell….but MANY will be caught crying into their hands, wondering how/why did this happen. i will have ZERO sympathy for THOSE simpletons….the world’s got WAAAY to many simps anyway. sick of seeing the “useless eaters” in my way at the checkout lines, with their EBT cards, and with their boyfriends, and cigs, and beer….let’s get some chlorine into the gene pool!

        • nitroman

          yes but when will it crash? nitro

      3. nubria 123

        I give a family member some shares of blue chips as he need some money. My advice to him dump that crap fast.

      4. eppe

        Let the markets hit the floor!
        Let the markets hit the floor!
        Dead Pool…

        ht tps://www.youtube.com/watch?v=HORkT4a2MhQ

        • eppe

          Thought this was pretty cool…

          ht tp://www.collective-evolution.com/2016/08/06/a-microhome-made-out-of-cardboard-that-lasts-100-years/

          • grandee

            too cute. thanks for posting it.

        • Frosty1

          Dead Pools -Bodies was #1 on play list at Guantanamo Bay for the easy listening pleasure of detainees….. until Obama turned it into a 5 star motel…?somethings got to give nooowwww!!!

          • Frosty1

            ht tps://m.youtube.com/watch?v=ey9MHQoY2Vg

          • Frosty1

            * Drowing Pool……Dead pool= Clint Eastwood

            • eppe

              I stand corrected.
              My wife’s grand uncle died this morning, so my mind was thinking different.

              Hell, he was 94…

      5. Redgypsy

        Maybe , maybe not

        Probability is like gravity sooner or later you can’t outrun it.

        Red

      6. rellik

        Everyone knows stocks are over-valued.
        Gold and silver are overpriced.
        Guns and cartridges are at a premium.
        The government suX!
        So what else is new?

        • hammerhead

          Relik , although it seems everything is overpriced , its really just inflation due to the Feds money printing.
          Think about , the dollar is being destroyed from within because of currency devaluation , wholly shit , the market has little to do with it in the long term.

      7. Godsoldier

        Gas was 1.85 at krogers used my kroger card got .30 cents off so it was 1.55 gal haven’t seen that for 10+yr

        • rellik

          $2.99 here. Democrats at work.
          Kill them all.

      8. Godsoldier

        Cheap beer king cobra 40 oz 1.80 between that and cheap gas i can afford to cut my grass 2x a week

      9. bb in GA

        Surely 1,100 is a typo..How about 11,000 ?

        <bb

        • eppe

          He was talking S&P 500.
          At 2100+ at the moment.
          Be well all…

      10. B from CA

        I no nothing about economics; but, my fashion antenna went up with that shocking pink tie.

        Hold on, it’s going to be a bumpy ride.

        ??? ___

      11. Satori

        one of these days us dumb ass fire monkeys are gonna burn ourselves up and the rest of the planet with us

        seems the grid going down might be the least of our worries

        A giant solar storm nearly triggered a nuclear war in 1967

        h ttp://www.businessinsider.com/cold-war-geomagnetic-storm-radio-disruption-2016-8

        “As the Strategic Air Command warmed up the engines of bombers and taxied toward the runway, the decision to go airborne may have been kicked all the way up to the “highest levels of government,” possibly involving President Lyndon B. Johnson. “

      12. Satori

        Julian Assange Suggests Seth Rich Who Was Murdered in DC
        was Wilkileaks DNC Source

        Gateway Pundit

      13. anon

        On Drudge

        Another trump supporter beaten.

        62 year old man beaten for wearing a Trump Shirt.

      14. Jimbo

        Talked with a fellow who helps build basements for new homes in the Indianapolis IN area. He said they Are busy. Hiring drivers and such. Plenty of work. No shortage in the foreseeable future. There, a bit of good news for you folk.

        • buttcrackofdoom

          how is that GOOD news? those people building those houses are paying top pices, at the tippy tip top of the bubble…they LOSE those houses when prices are cut in half when all this zero interest rate policy stuff is over.

          • buttcrackofdoom

            i’m callin’ deja MOO….we seen THIS bullshit before(2003 to 2011, for the simpletons).

        • eppe

          Jimbo, makes one wonder.
          My county has commercial and residental building going on everywhere.
          Just a few more lots, and my hood will be done.
          Time to sell soon….
          Trying to convince upper management to let us work from home, everything is internet and instant messinging driven, but someone above us is being a prick.
          That would change everything in my future plans.
          But we could have an EMP or CME and everthing changes to the worst.

          Maybe I need to start my own doom and gloom site?
          What do you posters think???

      15. buttcrackofdoom

        no, no, NO, eppe….you wouldn’t survive….you got that optimism problem going against yuh….

        • eppe

          Happy doom and gloom maybe???

          • buttcrackofdoom

            you’re just tooo happy and positive for that.

            • eppe

              My oldest bought a 3 year web service for my birthday.
              She will design and run it.
              Takes a lot of thought and consideration.

              I would hope everyone would visit and comment.

              Maybe a sister site to the plan???

              • SCTV

                I think that if the plan and survivalblog were married and had a child that would be a great site. Reader articles on prepping/living with your own original content would be very interesting. Maybe not so much the militaristic approach. But please, Please, please have a daily funny section, I would favourite it.

                • eppe

                  Sctv, of course it would have a funny section.
                  A prepper section.
                  A current event section.
                  Just trying to figure out all the logistics to it all.
                  Thanks…

                  • buttcrackofdoom

                    sign me up, eppe!

                    • swinging richard

                      Yes EPPE. Do not forget the joke of the day. Count me in my friend.

                  • buttcrackofdoom

                    you could call it “survivalblog!”…..no,….wait….

              • Mossberg

                I’ve been reading your posts for a few years. Go for it, I’d check it out.

      16. Jimbo

        Spent years working for a multi state lumber company. Thru the ups and downs some folk still bought. Taking care of the aging baby boomers for instance is big business. Delivered to various site locations myself. Some had a waiting list and weren’t even built yet.
        Hopefully our leaders wake up. Seems a collaspe would benefit no one.

      17. WallyDog

        Different day, same crap…..time to wake up and realize the economy will never collapse. Markets move in up and down cycles and you are crazy if you live in fear. Enjoy the short time you have before you become worm food. Too many people on here are doom junkies and need to stop fretting and get off the pessimistic porn. The sun will come out tomorrow no matter who is elected.
        WallyDog out.

      18. eric

        Never heard him say to buy stocks back in 2009. Anyone have that video?

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