April 7 (Bloomberg) -- Marc Faber, the investor who recommended buying U.S. stocks before the steepest rally in more than 70 years, said the Standard & Poor's 500 Index may drop as much as 10 percent before resuming gains.
The index may decline to about 750 and rebound after July, Faber, 63, said in a Bloomberg Television interview in Singapore. Global stock markets are unlikely to fall below their October and November lows, he said. "We need some kind of correction, maybe around 5 to 10 percent, and after that we can maybe rally more into July," said Faber, the publisher of the Gloom, Boom & Doom report. "The economic news, while it won't be good, the rate of getting worse will slow down." The S&P has rallied 25 percent from a 12-year low since March 9, when Faber advised investors to buy U.S. stocks, saying government actions will boost shares. Asian equities are among the best bets for global investors because they are attractively valued and will benefit the most from a global economic rebound. Faber told investors to abandon U.S. stocks a week before 1987's so-called Black Monday crash and said in August 2007 that U.S. shares were entering a bear market. The S&P 500 peaked two months later before retreating as much as 57 percent. Commodities, Banks Faber said he bought some commodity producers in November and is now less "interested" in these companies after some stocks more than doubled. He is also buying some bank stocks and predicted that Citigroup Inc. shares could "easily rebound" to around $5 from $2.72 currently. "The rebound potential for some of these banks and financial institutions is quite high," Faber said. In Asia, stocks offer "much better value" than U.S. shares, and investors should seize the opportunity to buy the region's equities on "every setback," the investor said. Japanese stocks also "look interesting," he added. "If you buy Asian equities in the next three months, over the next five to 10 years, for sure you will make money," Faber said. "Asian exporting countries will benefit the most from an expansion when it happens." Faber is less favorable on bonds, saying they are entering a "long-term bear market" that can last for the next 15 years to 20 years. Investors should also diversify into the currencies of Canada, Australia and Singapore because in the U.S. dollar "may weaken somewhat," he added. The dollar has strengthened against all of the so-called Group of 10 currencies except the yen in the last 12 months, according to data tracked by Bloomberg. Faber still advises investors to buy gold even though the precious metal is going to be "dead money" in the next three to six months. He plans to buy more gold if prices drop to between $750 and $800 an ounce, he added. Prices retreated yesterday to $872.8, the lowest in more than two months. --- In obrolan-bandar@yahoogroups.com, "JsxTraderâ¢" <jsxtra...@...> wrote: > > Entry lah.., ini koreksi biasa aja.., namanya juga di resistant area, memang > kita expect bakal ada penolakan di area skrn ini, tapi so far belum ada > signal yg mengkhawatirkan..., kalau bertahan diatas 1510 for few days, we are > heading to 1600'an soon..., ane dah pecahin celengan, dan siap trading dgn > frame weekly to monthly..., konfirmasi jika close diatas 1650'an lah..., > otherwise, masih cipet sana-cipet sini.., hehe. > > > > Sent from my BullBerry® smartphone > > -----Original Message----- > From: Elaine Sui <elainesu...@...> > > Date: Tue, 7 Apr 2009 10:21:03 > To: <obrolan-bandar@yahoogroups.com> > Subject: Re: [ob] ASK: to technical traders (about correction) > > > *You mean entry plan...? > > Elaine** > * > On Tue, Apr 7, 2009 at 10:06 AM, jsx_consultant < > jsx-consult...@...> wrote: > > > IHSG -25 > > > > Don't concetrate on index NOW.... > > > > Index can be engineered, concentrate on each STOCK's technical dan > > Your trade exit plan... > > > > --- In obrolan-bandar@yahoogroups.com, "Rully" <rullymainsaham@> wrote: > > > > > > I'll take it. > > > > > > Here's the bet: > > > If I lose, I will treat you a nice dinner > > > If you lose, You will treat me a lunch > > > > > > place: Pacific Place > > > > > > How is that sounds? > > > > > > > > > ----- Original Message ----- > > > From: Elaine Sui > > > To: obrolan-bandar@yahoogroups.com > > > Sent: Tuesday, April 07, 2009 11:19 AM > > > Subject: Re: [ob] ASK: to technical traders (about correction) > > > > > > > > > Would you take it? > > > > > > Elaine > > > > > > > > > On Tue, Apr 7, 2009 at 8:52 AM, Rei <highwaystar91@> wrote: > > > > > > EL, you mentioned 7:0... > > > Till yesterday, it's only 4:0...3 more to go! > > > Are you planning to take any bet again with OBer? :-)) > > > > > > > > > On Tue, Apr 7, 2009 at 8:35 AM, Elaine Sui <elainesui83@> wrote: > > > > > > From your technical perspective, can we expect a correction for > > today or tomorrow, and how deep? Thanks. > > > > > > Elaine > > > > > > > > > > > > > ------------------------------------ > > > > + + > > + + + + + > > Mohon saat meREPLY posting, text dari posting lama dihapus > > kecuali diperlukan agar CONTEXTnya jelas. > > + + + + + > > + +Yahoo! Groups Links > > > > > > > > >
