Market Overview

'Dr Doom': Even If The Dow Goes To 100,000, It Will 'End Very Badly' For Investors

Share:
'Dr Doom': Even If The Dow Goes To 100,000, It Will 'End Very Badly' For Investors

Marc Faber, the editor of "The Gloom, Boom & Doom Report" is cautioning investors once again to take profits off the table and run for cover.

Faber, dubbed "Dr. Doom" given his uber-bearish views, thinks stocks could tank by at least 40 percent in an "epic" crash. He finds sufficient evidence to support his view from the "FANG" stocks, he explained during a recent CNBC "Trading Nation" segment.

The Nasdaq index has been boosted by a small handful of stocks, namely Facebook Inc (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) — and this is "not a particularly healthy sign" from a technical point of view.

Meanwhile, Faber said in May that many tech stocks are vulnerable to a one day collapse of 10 percent. As it turns out, this occurred on June 9 when NVIDIA Corporation (NASDAQ: NVDA) dropped 15 percent at one point while shares of Apple Inc. (NASDAQ: AAPL) were down 9 percent.

This goes to show that the market is prone to volatility and even some of the hottest tech stocks are prone to a double-digit decline in one day alone.

"We have a lot of volatility, and when things will start to go down, they'll go down a lot."

While Faber sees this as a sign for investors to run for cover the fact remains the Federal Reserve will always be in a position to "print enough money that the Dow goes to 100,000." But ultimately it will "end very badly, extremely badly."

"Either people with money will be taxed heavily ... or we'll have a massive deflation in asset prices — I repeat: massive," he said. "Eventually the system will break."

Related Links:

Factors Driving FANG Still Intact, But Macro Backdrop More Mixed

Don't Buy This Tech Dip, Notable Internet Analyst Says

 

Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

Posted-In: CNBC Dr Doom FANG Marc FaberFutures Markets Tech Media Best of Benzinga