Marc Faber says the stock market is setting up for a decline more painful than the sudden crash of 1987.
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Faber said with a devious chuckle on Thursday's episode of "Futures Now." "And I suspect it will be even worse."
Faber, the editor and publisher of the Gloom, Boom & Doom Report, has recently called for growth stocks to decline. And he says the pain in the Internet and biotech sectors is just getting started.
"I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations," Faber said. "They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run."
To be sure, there are prominent investors that disagree with Faber, among them legendary stock-picker Bill Miller, who said this week that conditions for a bad market simply don't exist.
http://www.cnbc.com/id/101573688
