The Gloom, Boom, & Doom report’s Marc Faber was back on CNBC’s Futures Now with an ominous warning for the second half of 2013. Faber compared the current action in the stock market to that in the late summer of 1987, and predicted that a similar massive stock market crash/panic is coming this fall.
“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought. The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks. That’s exactly where we find ourselves this August.“
How large of a market collapse does Faber believe we are staring down the barrel of? “Maybe 20 percent [lower], maybe more!“
Faber’s full interview is below: