Marc Faber, author of the regular Financial Gazette Gloom, Boom & Doom Report, finds that the market can lead to a catastrophe similar to the one that was in 1987, when the Dow Jones fell by about 23% - based on AMarkets.
The market is extremely volatile - says the expert. Interventions with fiscal and monetary policy, instead of reducing volatility, push its growth at a later date. The average share of broad market index in the US has fallen by 26% since the beginning of the correction to 52-month high. Also there are many securities that have fallen by 50% or more. Faber, it must be said, repeating about the dangers of falling market since July. In the summer of Faber spoke about the possibility of subsidence S & P by 40%. Since May, the broad market index sank by 11%. The average correction - a 10% decline. Since 2011, it should be noted, all markets subside.
The US market held better than everyone else. What is happening with US stocks today - the expert - is the acceptance of reality in the form as it is. According to Faber, the reality - it is actually a recession. This month, Faber said that waiting for the fall of S & P and 5-year low in the short term. According to FactSet, it gained a level somewhere around 1099 (if at least assume October 2011). The most pessimistic scenario Faber - the index to fall to 2009 lows. According to calculations FactSet - it's something about the level of 677.