“The stocks may not necessarily collapse right away… maybe they would actually go to 60 times the earnings or even 70 times the earnings,” Marc Faber said, adding that a lot of things have to fall in place perfectly to buy those stocks at so high valuations, and that he would rather stay away from such shares. “I am just saying that once you pay 50 times the earnings for a stock, everything has to go perfectly well to justify that valuation. I wouldn’t buy a stock at 50 times the earnings,” he said.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.