We first noted Mr. Faber's growing bullishness last week in "Marc Faber: Stocks Poised to Rally", relaying a February 24 Bloomberg story with the observation that the market had fallen 9% in the intervening week.
The market continued to fall, to Friday's S&P low of 666.79, for a total of 14% since Mr. Faber first raised the issue.
At a recent 713.13, up 36.60, the market is still 7.7% lower than when he initially made the call. Here's the story from ClusterStock:
After years of being famous for the Gloom & Doom part of his Gloom, Boom & Doom report, Marc Faber was sounding a different note on Bloomberg television this morning. The investor and newsletter said that all the new government spending and money creation, might not fix the economy but would cause a stock-market rally from now to the end of April. What's more, he said that now that the S&P was off 56 percent from its high, investing in equities was likely to be profitable over the next ten years.
“Equities could rally between here and the end of April,” Faber said. “The government’s efforts will fail to boost economic activity. They can boost stocks. Stocks have adjusted meaningfully.”
Faber thinks the rally will likely be short-lived, saying that after the March to May rally, the S&P 500 could drop 27 percent to below 500. But on a long-term perspective, he sounded very bullish, saying investors will make money over the next 10 years....MORE