Market analyst Marc Faber, editor of the Gloom, Boom & Doom Report, has warned that the prospects of recovery in major global stock markets remain bleak. Speaking in an interview with NDTV Profit on Wednesday, Faber advised retail investors, including those in India, to exit the markets if there is a temporary rebound.
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“If the market rebounds, then get out,” he said, predicting that the ongoing global bear market could persist for “several years”.
Retail Investors Suffer ‘Colossal Losses’
Faber highlighted that retail investors in both the United States and India contributed significantly to last year’s stock market rally. However, he noted that many of them entered speculative trades without much deliberation.
“Last summer, there was high participation of retail investors in the US market. The same happened in India… Many of these investors have no clue,” he remarked.
Faber pointed to high-risk bets on AI chipmaker Nvidia, electric vehicle giant Tesla, and cryptocurrency Bitcoin as the primary drivers of speculative trading in global markets. Over the past two months, the trend has reversed, with Tesla plunging over 30% and Nvidia dropping more than 17%.
“Retail investors have suffered colossal losses in the last two months,” he said, adding that Indian investors have not been spared from the downturn.
Precious Metals as a Safe Haven?
Faber suggested that holding gold, silver, and platinum could be a safer alternative for Indian investors, as he expects the Indian rupee to decline against these commodities.
The value of returns could be superficially increased through inflation, but the real value will continue to slip, he cautioned.
‘Biggest Bubble in History’
The 79-year-old market expert believes the US stock market is currently “the biggest bubble in history” when compared to the real economy. He does not foresee a recovery in major equity markets for the next few years.
Faber also criticized US President Donald Trump’s tariff policies, calling them the “worst economic intervention you can dream about.”
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With global markets showing little sign of recovery, Faber’s warning serves as a stark reminder for retail investors to tread cautiously in volatile conditions.
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