Marc Faber predicts that the stock market will crash during the second half of 2013.
Faber claims that the stock market is moving the same way it did before it crashed in 1987. When the stock market crashed in 1987 the S&P dropped 30%. Faber predicts the the S&P could drop as much as 20% when the market crashes this year. Faber believes that the crash will happen due to the market being reliant on a small number of companies.
“The only way this market can go up is if the 10 or 50 stocks that are very strong continue to drive the market higher, with the majority of stocks having actually peaked out,” Faber told CNBC.
Jeremy Siegel, professor of finance at the University of Pennsylvania, doesn’t agree with Faber. Siegel believes that the Dow Jones Industrial Average could reach up to 17,000
during this year.