After this past election, the Dow Jones Industrial Average has seen record breaking gains and many market analysts believe the Dow will reach 23,000 or higher. Investors are anticipating that President Trump will uphold his promise to push back financial regulations like the Dodd Frank Act.
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Regardless of the Dow’s rapid incline, “Gloom, Boom & Doom Report” Editor Marc Faber believes the U.S. market is ‘completely out of range’ with the other world markets.
“Investors should understand that markets can also go down and it would not surprise me to see the inflated asset markets especially the financial markets being down 20 to 40 percent at some point. I think there will be a closing of this diverging performance with either Europe outperforming the U.S. or both going down or the U.S. going down more,” he told the FOX Business Network’s Charles Payne.
Faber believes the U.S. markets are not as healthy as the media is making them out to be.
“The typical stock in America is already down 9 percent from a 52 week time and in the last three days wouldn’t you think that this is maybe a little bit funny? Every day there were more new lows on the New York Stock Exchange than new highs and this 1.6 percent below the all-time high in the market, that should tell you something,” he said.
Faber concluded by saying, “I would buy European stocks.”