- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- Obama says Boosting US Jobs is Top Priority
- More Consumers Giving 'Black Friday' the Cold Shoulder
- Prepare For Large Decline In Stocks, Next Year?
- Appeals Court Denies Microsoft's Alcatel Petition
- HP Comes in As Expected; Is It Time to Buy?
- Cramer: What Monday’s Housing Number Really Means
- Why the Dollar Will Likely Stay Weak for Some Time
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- China Eastern to Complete Shanghai Air Buy by End '09
- The Social Media Gaming Threat
- Paul: Audit the Fed
- JAL Slides to Record Low on Bankruptcy Jitters
- Prepare For Large Decline In Stocks, Next Year?
- Gold Will Collapse Like Oil Did in 2008: Charts
- Lyondell Urged to Consider Reliance Takeover Offer
The first half of next year will be very bad for the world economy, but investors will find value in stock markets as some deeply discounted shares will stage a rebound, Marc Faber, editor and publisher Gloom, Boom and Doom Report, told CNBC.
For 2009, Faber expects a continuation of the very high volatility in 2008, a strong rebound in stocks and then markets will ease again as investors realize the world economy will not recover very fast and corporate profits will not rise quickly.
"The first half of 2009 will be a disaster… I don't see any catalyst that will propel the world economy," Faber told "Squawk Box Europe."
![]() |
AP |
As many stocks collapsed, with the London market down around 40 percent this year and Russia falling by around 70 percent, a mood of pessimism has spread across markets and people are still bearish, and this brings opportunities, he said.
"I think that some value has been emerging. There are pockets of value in the market," said Faber, who said he believes markets bottomed out in November.
Miners and Commodities
Mining stocks and commodities prices have been collapsing but they will rise fast when an economic recovery finally takes place, as now there is very little exploration carried out and supply will not pick up much while demand will rise fast, according to Faber.
Video: watch the full Marc Faber interview.
Emerging markets, especially the Asian ones which have built up strong financial positions after the 1998 crisis, will have a strong rebound, Faber predicted.
Authorities did not manage the crisis properly, with Federal Reserve and government meddling actually making things worse, he said.
"In my opinion, especially the Fed in the US has done a totally disastrous job at steering the economy," he said. "Market based solutions are the best, interventions create new and new problems in the economy."
Inflation is the next danger, as once a recovery takes place prices will rise and the Fed will find it hard to push its near-zero rates above inflation, Faber said.
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- CNBC’s Phil LeBeau took a test drive of GM’s flagship electric car. Here’s what he thought of the Volt.
- The energy company Power Efficiency is building tools that regulate the power electric motors use.
- CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.












