Marc Faber: An ‘avalanche’ of selling is coming

From CNBC:

The man often hailed as the original ‘Dr. Doom’ is warning investors that the U.S. stock market is vulnerable to a seismic sell-off—one that could start any time in a very unassuming way.

Marc Faber, the editor of “The Gloom, Boom & Doom Report,” predicted the rally’s disruption won’t be caused by any single catalyst. His argument: Stocks are very overbought and sentiment is way too bullish for the so-called Trump rally to continue.

Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche,” said Faber recently on Futures Now. “I would underweight U.S. stocks.”

Faber, a supporter of President Donald Trump, isn’t blaming the new administration for his bearish forecast.

“One man alone, he cannot make ‘America great again.’ That you have to realize,” he said. “Trump, unlike Mr. Reagan, is facing huge, huge headwinds — including a debt to GDP that is gigantic, as it is in other countries.”

Faber lists interest rates going up, as well as earnings and margins at record levels, as additional risks to the historic rally.

Read the full story at CNBC here…

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