“Look out! A 1987-Style Crash is Coming.” — Marc Faber
Last month, Marc Faber, publisher of the Gloom, Boom & Doom Report, predicted that a 1987 crash ‚??will happen in the back half of 2013.‚?Ě In 1987, the stock market boomed — until it collapsed on October 19, 1987, when the Dow fell more than 22%. I well remember it — I celebrated my 40th birthday, having warned investors to get out six weeks earlier.
Since then, I’ve predicted bull and bear markets, but not another 1987-like crash because of various tools the federal government has put into place to keep it from happening. Even the 2008 bear market did not see a 22% decline in one day due to Fed intervention.
One market-friendly money manager who is betting on another crash is Mark Spitznagel, director of Universa Investments in Santa Monica, Calif. He bases his pessimistic forecast on Austrian economics — the economics of Ludwig von Mises and Friedrich Hayek, and the Austrian theory of the business cycle.
To read the rest of this article, click here.
Sign up to the Human Events newsletter