Marc Faber’s 10% Prediction: So What?!?

This should not qualify as news..

Faber said the Standard & Poor’s 500 Index may drop as much as 10 percent before resuming gains.

The measure may decline to about 750 and rebound after July, Faber, 63, said in a Bloomberg Television interview in Singapore. Global stock markets are unlikely to fall below their October and November lows, he said.

“We need some kind of correction, maybe around 5 to 10 percent, and after that we can maybe rally more into July,” said Faber, the publisher of the Gloom, Boom & Doom report. “The economic news, while it won’t be good, the rate of getting worse will slow down.”

5% to 10%? we have been seeing swings like that on a weekly basis this year. Investors should be surprised if we do not see a swing that large, especially after the run. Saying it “needs” to happen is almost insane. Given the run the markets have had, dropping 5% is virtually irrelevant and I think you would be hard pressed to find anyone other than the congenitally optimistic who thinks we might not see more than that. Hell, I would not be surprised if we do not see 5% by Friday now that we are in earnings season.

This is a “gimme” prediction from Faber so he can sit back and boast when it happens and say “I was right”.

I predict the sun will rise tomorrow…

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