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Gloom, Boom & Doom

He correctly predicted the market crash of 1987 and the 1990 Japanese sell-off. Here's what market guru Marc Faber is currently saying about stocks today.

Marc Faber is managing director Of Marc Faber Ltd and publisher of the “Gloom, Boom & Doom Report” He joins the panel for this conversation. Following are excerpts.

Where are we headed over the next 6 – 9 months?

"I think in general the US market relative to other markets is not that expensive says Marc Faber. I think we are modestly oversold and we could rally into Jan 3rd - Jan 10th and then sell off again."

"But that’s not to say the market is on solid footing," he adds. "However, overseas there are probably bigger bubbles (than in the US) especially in China and India. There the markets could easily drop 20-30%."

What’s your perspective on global growth?

"In overseas markets we have boom conditions everywhere. But it’s wrong to think that just because of those conditions, the market will automatically go up," explains Marc Faber. "Clearly the real economy requires huge expenditures for infrastructure, especially in Asia. And that might drain some liquidity from US markets."

He adds, "and if the US has a credit crisis and there's also a slowdown in global credit growth.. it (could) lead to a relative tightening of liquidity which is not good for asset markets."

* Note: Readers, if you're looking for the video of this interview it's all the way at the end of the "Word On The Street" segment.


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Trader disclosure: On Dec. 4, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (DIS), (SWY); Najarian Owns (TSL) Options, (XMSR) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (JWN), (KSS), (WMT), (YHOO); Finerman's Firm Owns (MSFT) Options, (BIIB) Options; Finerman's Firm Is Short (IJR), (IYR), (IWM), (SPY), (MBI), (LEN); Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC

MARC FABER
Faber Owns Gold

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