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Marc Faber says the stock market is setting up for a decline more painful than the sudden crash of 1987.
“I think it’s very likely that we’re seeing, in the next 12 months, an ’87-type of crash,” Faber said with a devious chuckle on Thursday’s episode of “Futures Now.” “And I suspect it will be even worse.”
Faber, the editor and publisher of the Gloom, Boom & Doom Report, has recently called for growth stocks to decline. And he says the pain in the Internet and biotech sectors is just getting started.
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To be sure, there are prominent investors that disagree with Faber, among them legendary stockpicker Bill Miller, who said this week that conditions for a bad market simply don’t exist.
But it’s not just momentum stocks that Faber is wary of. He says that investors are coming to a stark realization.
“I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization,” Faber said. “They have no idea what they’re doing. And so the confidence level of investors is diminishing, in my view.”
Full article: 2014 crash will be worse than 1987’s: Marc Faber (CNBC)
