Wednesday 8 October 2008

Market Oversold, Short-Term Bottom Near: Dr. Doom

The stock market is as oversold as it has been since the crash of 1987 and the broader market could be start to rebound until early next year, Marc Faber, editor and publisher of the Gloom Boom and Doom Report, said Tuesday.

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Guanyu said...

Market Oversold, Short-Term Bottom Near: Dr. Doom

7 October 2008

The stock market is as oversold as it has been since the crash of 1987 and the broader market could be start to rebound until early next year, Marc Faber, editor and publisher of the Gloom Boom and Doom Report, said Tuesday.

The market is possibly in “the most oversold condition” since perhaps Oct. 19, 1987, Faber told CNBC’s “Squawk Box.”

“Usually there is some seasonal strength between October and March” so it is possible the S&P 500 index will create a low between now and the end of the month, he said.

But even at 1,000 the S&P is not particularly attractive and investors will still have to grapple with falling earnings through 2009, Faber said.

“The fact is that earnings next year will continue to disappoint as the global economy is in recession,” he said.

Longer-term investors will have to position themselves in emerging country stock markets to play the global recovery, Faber advised.