5 Gloom-and-Doomy Market Predictions of 2013

By MarketsFOXBusiness

Here’s a look back at five doomsday market calls made this year by uber bear Marc Faber, editor of “The Gloom, Boom & Doom Report.” Chicken Little didn’t see the sky fall in 2013 – in fact, stocks surged 30%. Will 2014 be the year of the bear?

1. Faber: We could see a 1987-like market crash

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Date: Feb 13, 2013

As stocks continued to climb in the beginning of 2013, Faber predicted danger ahead. At the time, he expected an imminent 5%-10% pullback, and if that didn’t happen, he said we could be in for another epic 1987-like crash.

2. As markets rally, so does the probability of a crash

Date: April 11, 2013

In April, Faber predicted a market crash could happen sometime in the second half of the year. Faber pointed to inflated corporate profits sparked by heavy U.S. borrowing and aggressive Federal Reserve bond buying as signs of trouble ahead.

"Profits are where they are because we have huge fiscal deficit and money printing," he said.

3. Faber: Plenty more stimulus to come

Date: July 8, 2013

Investors and economists played the Fed-taper guessing game throughout 2013. In July, Faber offered his outlook on the markets and predicted there will be 96 more rounds of QE on the way.  He also said he would rather buy bonds and gold instead of equities.

4. Faber: Momentum stocks the next bubble

Date: Nov 25, 2011

"We are in a gigantic financial bubble," the ever-bearish Faber said in late November. At the time, he said momentum stocks like Tesla, Twitter, Facebook and eBay had the biggest risk of bursting.

5. Marc Faber: Not a good time to buy stocks

Date: Dec. 2, 2013

In early December, Faber said while his doomy predictions hadn’t played out yet in 2013, that didn’t mean he doesn’t expect them to come to fruition in 2014.

“A year ago, I expected a 20% correction, and it didn’t happen. But I also said at the time that one possibility was a repeat of 1987, when the markets went ballistic, and then crashed by 40%. I think we are in a similar situation,” he said.

“There are so many warning signals, it is hard to believe,” said Faber on his current outlook for the markets.

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