Opinion (Marc Faber, Swiss investor): “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 … ‘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.
“‘I think there are some groups of stocks that are highly vulnerable because they’re in cuckoo land in terms of valuations,’ Faber said. ‘They have no earnings. They’re valued at price-to-sales. And this is not a good metric in the long run.’
“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.’
“As investors adjust to this fact, and valuations shrink, he predicts a massive decline in the market.”
My Comment: Ahead of us there are more surprising, abrupt, and painful crashes of illusions, funds, and states—in general, of the world order. It will go on until together, we begin to solve the global problem of humanity: its transition to a new stage of its development, meaning until we wish to become integrally interconnected, not involuntarily, through markets, but on our own accord.