Dr. Faber says stocks could experience some “downside turbulence” in October and November, with a downside target of no more than 950 on the S&P on the pullback. Any break below 1,000 will rattle the Fed, he says, and rather doubts Federal Reserve Chairman Ben Bernanke will allow further market declines once 1,000 is reached.
At the 1,000 level, “QEII will come in earnest and in big amounts,” says Faber, intimating the Fed’s prerogative of supporting equities (directly, if necessary).
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Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
