US tech stocks plummeted to two year lows on Thursday, causing investors to draw their own speculations. Swiss investor Marc Faber went as far as saying that the recent stock drops are going to send ripples and cause a stock market crash – even worse than the one experienced in 1987.
He argued that technology stocks are vulnerable as they are valued at price to sales and that they don’t have earnings. He also bashed the Federal Reserve and calls it a “clueless organization”, causing investors to lose confidence. He predicts the S&P to drop between 20% and 30%.
Mr. Faber had predicted the market crash as early as August last year. Since then the S&P 500 had risen around 9%.
Read more about this on the Sydney Morning Herald website.
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