The notoriously bearish Marc Faber is doubling down on his dire market view.
“I think we can easily give back five years of capital gains, which would take the market down to around 1,100,” Faber said, referring to a level 50 percent below Monday’s closing on the S&P 500.
In fact, stocks would need to fall by at least that much in order for some of Faber’s calls to be proven correct. In October 2009, when the S&P was trading near 1,100, Faber said on Indian CNBC-TV18 that U.S. and Indian stocks were “very overbought” and “the gravy’s out” on the rally.
Since then, Faber has generally only become more and more bearish as stocks have climbed. And on Monday, as Faber made his latest crash call, the S&P 500 touched an all-time high of 2,185.44.
When pressed on what could cause the decline he predicts, Faber responded that “you never know exactly why this will happen,” adding that he believes the market’s gains are unsustainable.
Marc Faber: Tesla shares are going to $0
Marc Faber, editor of the Gloom, Boom & Doom Report, is well-known his perennially bearish take on the overall market. But there are also some specific stocks of which the investor known as “Dr. Doom” takes a particularly dim view — and right now, prime among those is Tesla.
“What they produce can be produced by Mercedes, BMW, Toyota, Nissan. Anybody in the world can make it eventually, at much lower cost and probably much more efficiently,” Faber said Monday on CNBC’s “Trading Nation.”
“The market for Toyota and these large automobile companies is simply not big enough, but the moment it becomes bigger, they’ll move into the field and then Tesla will have a lot of competition.”
Faber sees this increased competition causing more than a small dent in the company’s business and stock performance.
“I think Tesla is a company that is likely to go to zero eventually,” Faber said.