US Stocks Could Fall 20%: Marc Faber

Wednesday, 24 Oct 2012 | 3:29 AM ET
Marc Faber
Jonathan Fickles | Bloomberg | Getty Images
Marc Faber

The S&P 500 and Dow Jones Industrial Average could plummet 20 percent from their recent highs, veteran investor and author of the Gloom, Boom and Doom report, Marc Faber, told CNBC.

Marc Faber
Jonathan Fickles | Bloomberg | Getty Images
Marc Faber

"I believe globally we are faced with slowing economies and disappointing corporate profits, and I will not be surprised to see the Dow Jones, the S&P, the major indices, down from the recent highs by say, 20 percent," Faber said on Tuesday.

"That is not a big decline. If you can't take a 20 percent decline, don't get out of your bed in the morning," he added.

The S&P 500 peaked in mid-September at 1,474.51 points, while the Dow reached 13,661.87 points earlier this month.

Faber: If You Can't Take a 20% Decline, Don't Get Out of Bed
Marc Faber, managing director, editor & publisher of the Gloom Boom & Doom Report, tells CNBC "I wouldn't be surprised to see the major indices down by 20 percent, which is not a big decline."

Regarding the U.S.'s Federal Reserve's third round of monetary stimulus measures, dubbed QE3, Faber said: "I don't believe fiscal and monetary stimulus works on the economy. It may have side effects and unintended consequences, but it is not empirically proven that if you throw money at the system you solve any problems."

Contact Europe: Economy


    Get the best of CNBC in your inbox

    › Learn More