Faber: Stocks Can Fall 20 Percent if New High Hit

U.S. stocks may drop 20 percent if they top their January highs, says investment guru Mark Faber.

The Standard & Poor’s 500 Index reached a high of 1,150 Jan. 19.

“I’m not sure we will make a new high,” Faber, editor of "The Gloom, Boom & Doom Report," told Bloomberg.

“But if we do, I don’t think it will be that far – maybe 1,200 – and then I wouldn’t rule out a correction of at least 20 percent.”

On the currency front, Faber says the euro is very oversold, trading at about $1.35.

“The news has been horrible for the euro zone,” he said. “I think the euro can rebound to $1.40 before it goes lower.” (more)