Market Overview

Marc Faber: Market Overbought; Homebuilders, Tech Could Lead Stocks Lower

Share:
Related SPY
Sabine Oil & Gas Corp. Gets Breathing Room From Creditors
S&P 500 Index Futures Trading Lower In Quiet Session
Greece Has Won This Round (Seeking Alpha)
Related GLD
Gold Futures Remain Range Bound
Materials, Technology And Gold ETFs To Watch This Week
Gold's Primary Driver Of Speculators' Futures Positions Is Very Bullish (Seeking Alpha)

Marc Faber, editor of the Gloom, Boom and Doom Report told CNBC's Maria Bartiromo on Tuesday that he was reducing his exposure to equities. Faber said that the market was "overbought."

Still, he admitted that the market might continue to rally this year, but even if it did, he foresaw a "'87 moment" wherein the market could plunge by as much as 40 percent in the second half of the year.

Faber said he was reducing his US equity exposure because he thought market "euphoria" was building up. "Markets move up and down," Faber said.

Geopolitically, Faber thought there could be continued issues in the Middle East, a region he described as a "boiling point" and thought that corporate profits could drop as companies face declining revenues and the inability to cut costs further.

Faber continues to like gold, saying that he owns the yellow metal because he is "fearful of systemic crises, wars and so forth."

He thought that Ukranian and Chinese stocks were cheap on a "relative" basis. In the US, he thought that mining and resource companies were not particularly expensive and, though he was a bull on homebuilding stocks in 2012, thought they had outrun their fundamentals. Faber warned that tech could continue to be vulnerable.

Posted-In: Marc FaberCNBC News Movers & Shakers Media Trading Ideas General

 

Related Articles (GLD + SPY)

Around the Web, We're Loving...

Get Benzinga's Newsletters