http://www.moneynews.com/StreetTalk/Faber-100chance-recession/2012/05/31/id/440837?PROMO_CODE=F144-1Investors need to prepare for a global recession.
That’s the takeaway from one well-respected economist after his recent appearance on CNBC’s Fast Money Halftime Report.
According to Marc Faber, the author of the Gloom, Boom, and Doom Report, a global recession is all but a certainty later this year or in early 2013.
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered:
“100%.”
Faber’s pessimism during his recent appearance on CNBC wasn’t surprising for a man whose nickname is “Doctor Doom.”
What was surprising was his level of certainty that a global recession was coming.
Faber stated that there is a “meaningful slowdown in India and China” that many investors are missing due to the media’s focus on Greece and Spain.
He is also worried that the wealthy may be showing signs of spending fatigue after Tiffany’s reported slowing sales.
“There are more and more stocks that are breaking down — economic sensitive stocks and companies that cater to the high end. That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.”
While it is worrisome that Faber’s odds of a global recession are “100%,” it is hardly as alarming as the scenario laid out by another economist.
