Faber: Stocks Headed for a 20 Percent Plunge by Year's End

Stocks will plunge by year's end and the euro is seriously oversold, says economist Marc Faber, publisher of the Gloom, Boom and Doom report.

“If (equities) make a new high, I wouldn’t rule out a correction of at least about 20 percent,” Faber says.

“Don’t forget, many shares in America and globally have already corrected 20 percent, so for them to make a new high isn’t going to be all that easy in the first place,” he recently told Bloomberg.

In general, however, Faber says “it’s better to be in stocks than bonds over the next few years because we will get more inflation in due course.”

Faber describes the euro's high against the U.S. dollar last fall as a false breakout. “I think it can rebound to $1.40 before it goes lower,” he says. (more)