[公告] Marc Faber: Beware, a False Rally May Be Coming

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Marc Faber is one of the most widely followed strategists working today.  His insights are highly valued for being remarkably accurate.

A celebrated economist and author of the Gloom Boom Doom newsletter Faber is a renowned bear, who first rose to prominence after he correctly predicted the Crash of ’87.

Since that time he predicted the rise in the price of oil, precious metals, and other commodities as well as the decline in the dollar and the 2007 Great Recession.



Affectionately named Dr. Doom because his commentary is often negative, it’s fair to say that when Faber speaks the Street listens.

And on Wednesday Faber told CNBC's Fast Money to beware a false rally in the late summer or early fall.

Faber believes catalysts are currently in place that could trigger an advance.

“In the US there have been a few strong stocks such as Kimberly Clark [KMB  83.03    0.09  (+0.11%)   ], Johnson & Johnson [JNJ  68.35    -0.29  (-0.42%)   ], Merck [MRK  44.06    -0.35  (-0.79%)   ] and Altria [MO  35.13    -0.31  (-0.87%)   ]," he says. "They have all made new highs. Also there are some deeply oversold stocks, – mostly economically sensitive companies such as miners.”

Faber says if investors continue to 'stick with what's working' and also bid up some oversold stocks, the market could rally. "We could go to 1450 or even 1500," he says.

However, he believes any advance will be a false rally. At 1450-1500, he says the S&P will be at the top of the range. Faber’s proprietary research suggests to him “we’re in the late stage of a mature market and not a new bull.”

From those levels he sees bears taking the market down. Faber estimates the S&P could trade down about 150 points from where we are now, or about 1250. However, at 1250 he thinks the potential of QE3 then sets a floor.

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