Bear market king Marc Faber, also the editor and publisher of the Gloom, Boom & Doom report, expects the US gauge S&P 500 index to crash by a whopping 50 percent over Monday's closing price.
On Monday, the S&P 500 index closed at 2,180.89, not before hitting an all-time intra-day high of 2,185.44. A day later, the index ended a tad higher at 2,181.74.
In an interview with CNBC TV18, Faber said, "I think we can easily give back five years of capital gains, which would take the market down to around 1,100."
He didn't mention the reason for his bearish outlook on S&P 500 index, but responded saying, "you never know exactly why this will happen," adding that he believes the market's gains are unsustainable.
In fact in October 2009, the famous bear had said that the overbought US and Indian stocks could be headed for a major fall. At that time, the S&P 500 was trading around 1,100 level.
Even as Faber is predicting gloomy days for the US index, 48 percent of stocks constituting the S&P 500 clocked 52-week highs in past three months, while 6 percent hit their 1-year highs on Monday itself, the CNBC TV18 report said.
Not just that, Marc Faber has also taken a bearish view on individual stocks as well. He sees electric car maker Tesla's value to go down to $0 citing stiff competition from automobile biggies such as Mercedes, BMV and Toyota, who are entering the electric game in a big way, CNBC.com report said.
"I think Tesla is a company that is likely to go to zero eventually," Faber said.
On Tuesday, Tesla shares closed 1.3 percent higher at $229.08 a piece.
"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."
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Updated Date: Aug 10, 2016 11:11:25 IST