INVESTMENT ANALYST MARC FABER TELLS FOX BUSINESS THAT THE S&P 500 WILL “REVISIT THE LOWS OF JUNE AT 1,266”
Investment analyst and entrepreneur Marc Faber spoke with FOX Business Network (FBN) about his concerns surrounding the fiscal cliff and the market reaction to the United States presidential election. Faber said, “I think from the peak the market will drop at least 20 percent. I think we will revisit the lows of June at 1,266 on the S&P.” He went on to say that, “I’m not surprised the market is selling off because technically the market was weak already for a couple of months and we are in a downtrend and Mr. Obama’s economic policies are obviously not very good for an economic expansion.” Faber also stated that President Obama’s reelection was a “surprise” for some people, including investors.
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Excerpts from the interview are below:
On whether he is more worried that the United States will go over the fiscal cliff because President Obama was reelected:
“Well, in principle I think that actually Mr. Obama is not that bad for reducing the fiscal deficit and continuous monetization and that’s why treasury bonds are rallying. But as I said, he is not good for business so stocks are selling off because the stock market is expecting a hard time for corporate profit and essentially economic weakness, which is reflected in a strong bond market and weak stocks. As I said before, I think from the peak, the market will drop at least 20 percent. I think we will revisit the lows of June at 1,266 on the S&P.”
On the market reaction to the United States presidential election:
“I’m not surprised the market is selling off because technically the market was weak already for a couple of months and we are in a downtrend and Mr. Obama’s economic policies are obviously not very good for an economic expansion and I think small businesses and even medium-sized businesses will be very reluctant to hire people given Obamacare. I think among people who are investors, the reelection victory of President Obama was actually a surprise because I have so many friends who are Republicans and who are investors and they were betting on Mr. Romney. So I think for some people it is actually a surprise. And I think what people are also concerned about are increases in capital gains taxes.”
