Marc Faber Questions if Dow Could Hit 1,000

By: Patrick Allen
CNBC Senior News Editor

In the August edition of the ‘The Gloom, Boom & Doom Report’ Marc Faber questions whether the Dow could hit 1,000 as predicted by Robert Prechter, based on his interpretation of Elliot Waves, Fibonacci numbers and socioeconomic trends.

Prechter, who has written 13 books on finance, believes that the stock market is historically overvalued in terms of dividends and earnings, because of a "great rise in positive social mood."

But the mood changed in 2000 and the "trend toward negative social mood will lead to an economic contraction," according to Prechter.

"Small bear markets lead to recessions, big bear markets lead to depressions. The current bear market will be the biggest in nearly 300 years, so the depression will be correspondingly deep," Prechter said. (more)