Marc Faber Estimates the SP Breaking Down by 150 Points Sparking QE3

Wall
Street Pit

Widely
followed strategists Marc Faber spoke to CNBCÂ’s Fast Money
and said that investors should beware of a false rally in the late
summer or early fall. According to Faber, catalysts are currently
in place that could trigger more market upside. However, he believes
any advance will be only marginal and certainly not based on market
fundamentals. At 1450-1500, Faber says the SP will be at the
top of the range. From those levels he sees bears taking the market
down.

“I think
the market is going to break out of this range. My guess would be
on the downside and not on the upside”, Faber said. “I
think we are already overboard here. How low will we go? We may
have seen the highs for the year. Maybe we make a marginal new high
and then we drop again, but I think 2013 will be a difficult year
for equities.”

The author
of the “Gloom Boom Doom” newsletter estimates the SP
500 breaking down by 150 points, or 10%, sparking QE3 from the Fed.

Reprinted
with permission from Wall Street
Pit.

August
18, 2012

     

©
2012 Wall Street Pit

Dr.
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow’s
Gold.

The
Best of Marc Faber