Faber: Don't Expect Too Much From Rally


Marc Faber of the Gloom, Boom & Doom Report says equities may rally in the short term, but he doesn’t think it will be a long-lasting bullish move. “The rally came from a very oversold level,” Faber tells FOX Business Network. “We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.” Faber says he recommends a portfolio that is equally divided among four assets: equities, real estate, gold, and cash. He also discusses why he thinks strong initial holiday spending in the U.S. is unsustainable, and what he thinks the end-game is for Europe.