Bubblemania: Why Marc ‘Wolf’ Faber still thinks a 1987-style market crash is coming

The Extinction Protocol

August 15, 2013NEW YORKDr. Doom is doomish again. Marc Faber, the author of “The Gloom, Boom & Doom Report,” says investors need to brace for a drop of 20% or more by the time 2013 closes, predicting a market fallout similar to what was seen in 1987. “In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber said Thursday on CNBC. ”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.” October 1987 marks a period no investor could easily forget. The S&P 500 SPX -1.29% is up around 20% for 2013 so far. Faber compares that to 1987, when stocks rose more than 30% up to the same point. But it…

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