Marc Faber, popularly known as Dr. Doom has predicted that the US stock markets could correct by as much as 30-40%. In an interview to CNBC last week, Marc Faber said, " You don't see it. I don't see it and nobody sees it. That's why people continue buying stocks. Yet something will happen one day." Explaining what may cause the plummeting of stocks he said, "It may come from a credit event, or a disclosure of a major fraud or it may come because interest rates start to go up, although central banks remain on the dovish side. There are many small events that can trigger the decline."
Explaining why he predicts an impending doom, Marc Faber said that even though corporate profits have been expanding and interest rates remain low in the United States, as opposed to 2009, the valuations are very high. "Hardly anywhere in the world valuations are low. Stocks, as well as bonds, are fully priced," he pointed out.