I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organisation. They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations. They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run.
This year, for sure - maybe from a higher diving board - the S&P will drop 20 per cent. I think, rather, 30 per cent. Who knows? But all I'm saying is that it's not a very good time, right now, to buy stocks.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
