“If the market rebounds, then get out,” Faber, editor of the Gloom, Boom & Doom Report, said in an interview with NDTV Profit on Wednesday. He believes bear markets worldwide could persist for “several years,” cautioning that inflation may create an illusion of rising returns while eroding real value.
A veteran market commentator, Faber gained his moniker after repeatedly warning about the 1987 stock market crash, which ultimately materialized. Since the 1970s, he has been publishing bearish forecasts, initially for personal use, at a time when Americans were largely unaware of foreign exchange dynamics and the dollar’s valuation against gold and European currencies.
Retail investors at risk amid market reversal
Faber attributed last year’s stock market rally in the U.S. and India to uninformed retail participation, warning that many of these investors are now facing sharp losses.
“Last summer, there was high participation of retail investors in the U.S. market. The same happened in India… Many of these investors have no clue,” he said.
He pointed to speculative frenzies in Nvidia, Tesla, and Bitcoin as major drivers of previous market gains, but noted that these assets have recently suffered significant declines. Over the past month, Tesla has tumbled more than 30%, Nvidia has dropped over 17%, and Bitcoin has lost 13%.
“Retail investors have suffered colossal losses in the last two months,” Faber said, adding that Indian investors have faced similar setbacks.
Faber, who has built a reputation for contrarian investing, has long advocated diversification, particularly in precious metals. He reiterated his belief that the rupee will “decline against the price of gold, silver and platinum,” making them a safer bet for Indian investors.
Global markets in a bubble?
Faber remains deeply skeptical about the long-term prospects of equity markets, especially in the U.S., which he described as the “biggest bubble in history” when compared to the real economy. His warnings align with his broader investment philosophy—advising investors to take positions contrary to market sentiment and prepare for worst-case scenarios.
On global trade, he criticized U.S. President Donald Trump’s use of import tariffs as a foreign policy tool, calling it the “worst economic intervention you can dream about.”
While his views remain polarizing, Faber’s insights continue to command attention in financial circles, reinforcing his status as a respected yet controversial voice in global markets.
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