Hard-money adviser Marc Faber, best known as publisher of the Gloom, Doom & Boom Report and consequently often referred to as “Dr. Doom,” told CNBC on Tuesday that the stock market could decline by 20 percent. He doesn’t think it will have anything to do with the “fiscal cliff” but instead will reflect poor earnings as bellwether companies struggle to be profitable in the continuing recession:
I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” — because there won’t be a “fiscal cliff.”
The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year (or even contract)…
That is the reason why stocks, from the highs of September of 1,470 on the S&P [Standard and Poor’s 500 Index], will drop at least 20 percent, in my view.
Faber noted that shares of Apple, Inc. are already off more than 20 percent since September, while shares of Amazon.com Inc., McDonald’s Corporation and Google, Inc. have each lost more than 8 percent of their market value during that period.
Taking a longer look, however, Dr. Doom is even more bearish. He thinks equities could