Stock Market Today: Why Marc Faber Predicts a 20% Slide
The stock market today (Thursday) is recovering slightly from yesterday's massive sell-off. Less than eight hours after President Obama gave his victory speech the Dow Jones was down 300 points yesterday in its biggest drop in over a year. Even though the markets started today positive, many financial experts, including Marc Faber and Peter Schiff, are extremely bearish now that the president has been re-elected. Here's what they have to say on the economy and the fiscal cliff, as well as some stocks that investors should avoid. Marc Faber warns of 20% market plunge- The Swiss investment analyst and entrepreneur spoke with Fox Business Network on what to expect from the markets during a second Obama term and about the impending fiscal cliff . "I think from the peak the market will drop at least 20%. I think we will revisit the lows of June at 1,266 on the S&P." On the markets' reaction to the election he added, "I'm not surprised the market is selling off because technically the market was weak already for a couple of months and we are in a downtrend and Mr. Obama's economic policies are obviously not very good for an economic expansion."
The stock market today (Thursday) is recovering slightly from yesterday's massive sell-off. Less than eight hours after President Obama gave his victory speech the Dow Jones was down 300 points yesterday in its biggest drop in over a year.
Even though the markets started today positive, many financial experts, including Marc Faber and Peter Schiff, are extremely bearish now that the president has been re-elected.
Here's what they have to say on the economy and the fiscal cliff, as well as some stocks that investors should avoid.
Editors Note: To prepare for the looming market crash, click herebody #pp-popup-509bedafab6ca div,body #pp-popup-509bedafab6ca dl,body #pp-popup-509bedafab6ca dt,body #pp-popup-509bedafab6ca dd,body #pp-popup-509bedafab6ca ul,body #pp-popup-509bedafab6ca ol,body #pp-popup-509bedafab6ca li,body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6,body #pp-popup-509bedafab6ca pre,body #pp-popup-509bedafab6ca code,body #pp-popup-509bedafab6ca form,body #pp-popup-509bedafab6ca fieldset,body #pp-popup-509bedafab6ca legend,body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca p,body #pp-popup-509bedafab6ca blockquote,body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca td{margin:0;padding:0;line-height:normal;}body #pp-popup-509bedafab6ca table{border-collapse:collapse;border-spacing:0;}body #pp-popup-509bedafab6ca fieldset,body #pp-popup-509bedafab6ca img{border:0;}body #pp-popup-509bedafab6ca address,body #pp-popup-509bedafab6ca caption,body #pp-popup-509bedafab6ca cite,body #pp-popup-509bedafab6ca code,body #pp-popup-509bedafab6ca dfn,body #pp-popup-509bedafab6ca em,body #pp-popup-509bedafab6ca strong,body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca var{font-style:normal;font-weight:normal;}body #pp-popup-509bedafab6ca li{list-style:none;}body #pp-popup-509bedafab6ca caption,body #pp-popup-509bedafab6ca th{text-align:left;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6{font-size:100%;font-weight:normal;}body #pp-popup-509bedafab6ca q:before,body #pp-popup-509bedafab6ca q:after{content:'';}body #pp-popup-509bedafab6ca abbr,body #pp-popup-509bedafab6ca acronym{border:0;font-variant:normal;}body #pp-popup-509bedafab6ca sup{vertical-align:text-top;}body #pp-popup-509bedafab6ca sub{vertical-align:text-bottom;}body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca select{*font-size:100%;}body #pp-popup-509bedafab6ca legend{color:#000;}body #pp-popup-509bedafab6ca del,body #pp-popup-509bedafab6ca ins{text-decoration:none;} body #pp-popup-509bedafab6ca h1{font-size:138.5%;}body #pp-popup-509bedafab6ca h2{font-size:123.1%;}body #pp-popup-509bedafab6ca h3{font-size:108%;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3{margin:1em 0;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6,body #pp-popup-509bedafab6ca strong{font-weight:bold;}body #pp-popup-509bedafab6ca abbr,body #pp-popup-509bedafab6ca acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-509bedafab6ca em{font-style:italic;}body #pp-popup-509bedafab6ca del{text-decoration:line-through;}body #pp-popup-509bedafab6ca blockquote,body #pp-popup-509bedafab6ca ul,ol,body #pp-popup-509bedafab6ca dl{margin:1em;}body #pp-popup-509bedafab6ca ol,body #pp-popup-509bedafab6ca ul,dl{margin-left:2em;}body #pp-popup-509bedafab6ca ol li{list-style:decimal outside;}body #pp-popup-509bedafab6ca ul li{list-style:disc outside;}body #pp-popup-509bedafab6ca dl dd{margin-left:1em;}body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca td{border:1px solid #000;padding:.5em;}body #pp-popup-509bedafab6ca th{font-weight:bold;text-align:center;}body #pp-popup-509bedafab6ca caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-509bedafab6ca fieldset,table,body #pp-popup-509bedafab6ca pre{margin-bottom:1em;}body #pp-popup-509bedafab6ca input[type=text],body #pp-popup-509bedafab6ca input[type=password],body #pp-popup-509bedafab6ca textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-509bedafab6ca').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"509bedafab6ca"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-509bedafab6ca\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});.
He ends by saying that our debt problems will lead to far bigger problems than Europe is currently facing. "I think what's going to happen in Obama's second term is going to be a currency crisis; a sovereign debt crisis. It's going to be the same thing that is happening in Europe or Greece," he says, "but it's going to be a lot worse."
In the second day of trading after the election these stocks continue to show signs of weakness.
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Tags: stock market news, stock market trend, The Biggest News from the Stock Market Today, U.S. Economy, Wall Street
Here's what they have to say on the economy and the fiscal cliff, as well as some stocks that investors should avoid.
- Marc Faber warns of 20% market plunge- The Swiss investment analyst and entrepreneur spoke with Fox Business Network on what to expect from the markets during a second Obama term and about the impending fiscal cliff. "I think from the peak the market will drop at least 20%. I think we will revisit the lows of June at 1,266 on the S&P." On the markets' reaction to the election he added, "I'm not surprised the market is selling off because technically the market was weak already for a couple of months and we are in a downtrend and Mr. Obama's economic policies are obviously not very good for an economic expansion."
Editors Note: To prepare for the looming market crash, click herebody #pp-popup-509bedafab6ca div,body #pp-popup-509bedafab6ca dl,body #pp-popup-509bedafab6ca dt,body #pp-popup-509bedafab6ca dd,body #pp-popup-509bedafab6ca ul,body #pp-popup-509bedafab6ca ol,body #pp-popup-509bedafab6ca li,body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6,body #pp-popup-509bedafab6ca pre,body #pp-popup-509bedafab6ca code,body #pp-popup-509bedafab6ca form,body #pp-popup-509bedafab6ca fieldset,body #pp-popup-509bedafab6ca legend,body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca p,body #pp-popup-509bedafab6ca blockquote,body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca td{margin:0;padding:0;line-height:normal;}body #pp-popup-509bedafab6ca table{border-collapse:collapse;border-spacing:0;}body #pp-popup-509bedafab6ca fieldset,body #pp-popup-509bedafab6ca img{border:0;}body #pp-popup-509bedafab6ca address,body #pp-popup-509bedafab6ca caption,body #pp-popup-509bedafab6ca cite,body #pp-popup-509bedafab6ca code,body #pp-popup-509bedafab6ca dfn,body #pp-popup-509bedafab6ca em,body #pp-popup-509bedafab6ca strong,body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca var{font-style:normal;font-weight:normal;}body #pp-popup-509bedafab6ca li{list-style:none;}body #pp-popup-509bedafab6ca caption,body #pp-popup-509bedafab6ca th{text-align:left;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6{font-size:100%;font-weight:normal;}body #pp-popup-509bedafab6ca q:before,body #pp-popup-509bedafab6ca q:after{content:'';}body #pp-popup-509bedafab6ca abbr,body #pp-popup-509bedafab6ca acronym{border:0;font-variant:normal;}body #pp-popup-509bedafab6ca sup{vertical-align:text-top;}body #pp-popup-509bedafab6ca sub{vertical-align:text-bottom;}body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-509bedafab6ca input,body #pp-popup-509bedafab6ca textarea,body #pp-popup-509bedafab6ca select{*font-size:100%;}body #pp-popup-509bedafab6ca legend{color:#000;}body #pp-popup-509bedafab6ca del,body #pp-popup-509bedafab6ca ins{text-decoration:none;} body #pp-popup-509bedafab6ca h1{font-size:138.5%;}body #pp-popup-509bedafab6ca h2{font-size:123.1%;}body #pp-popup-509bedafab6ca h3{font-size:108%;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3{margin:1em 0;}body #pp-popup-509bedafab6ca h1,body #pp-popup-509bedafab6ca h2,body #pp-popup-509bedafab6ca h3,body #pp-popup-509bedafab6ca h4,body #pp-popup-509bedafab6ca h5,body #pp-popup-509bedafab6ca h6,body #pp-popup-509bedafab6ca strong{font-weight:bold;}body #pp-popup-509bedafab6ca abbr,body #pp-popup-509bedafab6ca acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-509bedafab6ca em{font-style:italic;}body #pp-popup-509bedafab6ca del{text-decoration:line-through;}body #pp-popup-509bedafab6ca blockquote,body #pp-popup-509bedafab6ca ul,ol,body #pp-popup-509bedafab6ca dl{margin:1em;}body #pp-popup-509bedafab6ca ol,body #pp-popup-509bedafab6ca ul,dl{margin-left:2em;}body #pp-popup-509bedafab6ca ol li{list-style:decimal outside;}body #pp-popup-509bedafab6ca ul li{list-style:disc outside;}body #pp-popup-509bedafab6ca dl dd{margin-left:1em;}body #pp-popup-509bedafab6ca th,body #pp-popup-509bedafab6ca td{border:1px solid #000;padding:.5em;}body #pp-popup-509bedafab6ca th{font-weight:bold;text-align:center;}body #pp-popup-509bedafab6ca caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-509bedafab6ca fieldset,table,body #pp-popup-509bedafab6ca pre{margin-bottom:1em;}body #pp-popup-509bedafab6ca input[type=text],body #pp-popup-509bedafab6ca input[type=password],body #pp-popup-509bedafab6ca textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-509bedafab6ca').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"509bedafab6ca"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-509bedafab6ca\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});.
- Peter Schiff, "Obama will leave us worse off than Bush" - Schiff, the CEO of Euro Pacific Capital, expects the next four years to be very rough and does not expect higher taxes to translate into economic success. "When you increase taxes on companies, you make those companies less valuable. So, if companies are going to have lower after-tax earnings because they're going to have higher taxes, either on the corporate or individual level, those corporations are less valuable and stocks need to be marked down to reflect those reduced after-tax earnings. And that's what's going on."
He ends by saying that our debt problems will lead to far bigger problems than Europe is currently facing. "I think what's going to happen in Obama's second term is going to be a currency crisis; a sovereign debt crisis. It's going to be the same thing that is happening in Europe or Greece," he says, "but it's going to be a lot worse."
In the second day of trading after the election these stocks continue to show signs of weakness.
- Universal Display Corp. (Nasdaq: PANL) fell more than 12% yesterday and is down another 15% today after the company missed third-quarter earnings and revenue estimates and lowered its full-year outlook.
- Teekay Tankers Ltd. (NYSE: TNK) is down more than 11% today after missing on its third-quarter earnings. TNK stock is now down more than 50% from its 52-week high hit in April.
- Monster Beverage Corp. (Nasdaq: MNST) can't catch a break. After being charged with a lawsuit claiming Monster energy drinks were the result of a young girl's death, the company reported slower revenue and profit growth, and missed on estimates. MNST stock is down 4% today and 36% in the past three months.
- Savient Pharmaceuticals Inc. (Nasdaq: SVNT) and Catalysts Pharmaceutical Partners Inc. (Nasdaq: CPRX) are two drug companies getting slammed today. SVNT stock is down 20% on missed earnings and CRPX stock is down over 60% after its cocaine de-addiction drug failed in clinical trials.
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By The 2016 Election Gold Could Be $3700 an Ounce - Fox Business:
Marc Faber: Markets Will Drop at Least 20% - Yahoo! Finance:
Post-Election Sell Off: It's All About Obama Says Peter Schiff
Tags: stock market news, stock market trend, The Biggest News from the Stock Market Today, U.S. Economy, Wall Street