Marc Faber is still bearish. He believes that a 50% drop in the S&P 500 is coming and that US Treasurys are good for long positions right now.
Faber said stocks have rallied because of the easy monetary policies of central banks around the world that have increased the flow of money.
"When you print money, something goes up," Faber said about the stock market.
"The real economy in the world is not doing well."
And with the S&P 500 again hitting new highs seven years into the bull market, Faber is calling for a 50% crash.
"I think we can easily give back five years of capital gains, which would take the market down to around 1,100," Faber said.
Faber said he owns some stocks, which make up 40% of his portfolio with emerging-market bonds.
His portfolio is also diversified with precious metals like gold and silver, which have gained 25% and 41% this year, respectively.
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