Dr. Doom:”The party is coming to an end folks”

Stock markets are trading at all-time highs and heading for their ninth straight year of record valuations, but one famed investor – known to many as Dr. Doom – is not falling for the hype.

“The fact that a market goes up does not necessarily mean it will continue to go up.If people think everything is fine, they’re mistaken.” Marc Faber said.

The famed economist is referring to U.S. stocks, which are still clocking in record highs with the S&P 500 and Dow Jones last seen at 22,929 points and 2,555, respectively. Faber’s comments also come just three days away from a major anniversary in financial market history – Black Monday. In October 1987, both the S&P and the Dow crashed over 20% in a single day.

“We have from a purely technical point of view, more favorable conditions than in ’87,” he said. “The market is not as overbought as it was at that time.”

“We are less overbought but we have more unfavorable macroeconomic conditions,” he explained. “If I look at monetary and economic conditions around the world, the level of debt is much higher now, the level of government debt is much higher.”

Source: Business Insider

Trader Bozhidar Arabadzhiev

Original Post: A Major Stock Market Correction Is Coming: Dr. Doom Marc Faber