Dow - The rally will end very badly

Marc Faber believes the stock market in the US is overdue for a correction.

"There is a chance that this market could behave like 1987 where the market went up first 40% from January until August 25 and then collapsed by 41% in two month."

To listen to him, click ' US rally will end really, really badly '.

Black Monday, 19th October, 1987

Courtesy of www.gannglobal.com.

On that Monday, Dow dropped 508 points from 2246 (previous Friday's closing price) to 1738 for a 22.6% drop. It dropped another 122 points or 7% on Tuesday, October 20.

From the market peak of 2746 recorded on 25th August to the bottom of 1616 on 20th October, Dow dropped 1130 points or 41% within two months.

So, make sure that you are out of the market before the bubble bursts.



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