Exit on Market Rebound: Marc Faber cautions global bear market could last for several years

Market analyst Marc Faber, editor of the Gloom, Boom & Doom Report, has issued a stark warning to retail investors, including those in India, advising them to exit the stock market if there is a temporary rebound. Faber predicted that the ongoing global bear market could last for several years.

Retail Investors Facing Heavy Losses

Faber pointed out that retail investors in the US and India played a major role in last year’s stock market rally. However, many of them entered speculative trades without careful analysis.

“Last summer, retail investors heavily participated in the US and Indian markets, but many had little understanding of market dynamics,” Faber stated.

He highlighted that high-risk investments in stocks like AI chipmaker Nvidia, electric vehicle leader Tesla, and cryptocurrency Bitcoin fueled speculative trading. Over the past two months, this trend has reversed, with Tesla dropping over 30% and Nvidia falling more than 17%, leading to massive losses for retail investors.

Is Gold a Safer Bet?

Faber suggested that Indian investors consider holding precious metals such as gold, silver, and platinum as a hedge against market volatility. He expects the Indian rupee to weaken against these commodities, warning that inflation may create an illusion of higher returns while the real value continues to erode.

‘Biggest Bubble in History’

The veteran market expert described the US stock market as “the biggest bubble in history”, comparing it to the real economy. He does not anticipate a market recovery in the near future and criticized former US President Donald Trump’s tariff policies, calling them "the worst economic intervention you can imagine."

With global markets struggling, Faber’s warning serves as a crucial reminder for investors to proceed with caution and reconsider their strategies in these uncertain times.