- In Time for Holidays: More Gloom and Doom on Economy
- Turkey Day 101: How Well Do You Know Your Bird?
- US Home Prices Up 5th Month, 2nd Straight Quarter
- Holiday Guide to This Season's Smartphones
- Six Ways to Boost Your Income in a Big Way
- Buyers Look for Bargains at Luxury Condo Auction
- Ron Paul's Plan to Audit Fed a 'Serious Attack': Mishkin
- GM's Agreement to Sell Saab Unit Falls Apart
- Strong Banks, Weak Credit: Treasury Rethinks TARP
- 3D's Tipping Point and Your Living Room
- On Twitter, Beware False Prophets
- My 2010 Home Price Outlook: UBS Analyst
- Why Are Options Piling into Dollar Tree?
- Novartis 'Cells' Its Flu Vaccine Technology
- Silicon Valley and Hollywood Now Fast Friends
- Markets Can Rise 5-10% in the Near-Term: Strategist
- Busch: The Debt-Interest Rate Paradox
- The Lloyd's Prayer, Leggo My Eggo, Plate Hate & Your Emails
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- GM's Agreement to Sell Saab To Swedish Firm Falls Apart
- US Home Prices Up 5th Month, 2nd Straight Quarter
- Buyers Look For Bargains At Luxury Condo Auction
- FDIC Fund Falls into The Red, Bair Urges Lending
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- Weak Dollar Is Golden for Mining Companies
- CA "More Profitable" After Saving Energy: CEO
- 10 Holiday Cocktail Recipes from Top Mixologists
- Behind The Scenes With Warren Buffett
Text Size 
Investors should take a holiday from now on as the best part of the rally is over and now there are more chances that markets would go down, Marc Faber, author of the Gloom, Boom and Doom Report, told CNBC Friday.
"What I'm telling clients? I think the summer is shaping up nicely and to take a holiday essentially. Because I think the gravy is out. We had a huge rally March to June," Faber said.
"It looked a week ago as if the market would break down. When markets are about to break down and they don't then there's a counter-trend rally," he added.
The S&P 500 index might go as high as 970 or even 1020 but then it will turn down again, Faber predicted, adding that earnings figures must be studied thoroughly.
"We have to look very carefully at how these results were achieved because there's a lot of massaging of results right now," he said.
But for the long term investors should still favor stocks over bonds, according to Faber.
"I think a balanced portfolio of high quality shares like WPP [WPP-LN
Loading...
()] and J&J [JNJ
Loading...
()
]…you buy the blue chips and you go to sleep, in 10 years time for sure you have made some money," he said. "Better to be a shareholder of something than somebody owes you something."
- Remember when auto shows were major events where new models could generate buzz?
- A diet high in fat and sugar might actually be good for your portfolio.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- Italians were outraged by a minister's comments that lunchbreaks are bad for waistlines and the economy.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes