Posted by: RICHARD PROCTOR | August 6, 2010


When investment guru Robert Prechter recently predicted that the Dow Jones Industrial Average will drop to 1,000, many dismissed him as being very unrealistic.

After all, that would be a 90 percent drop from the recent level of 10,680.

Not so fast, says fellow investment icon Marc Faber.

In his newsletter, “The Gloom, Boom & Doom Report,” Faber points out that people also rolled their eyes at Prechter in 1978, when he predicted the Dow would more than double to 2,300, CNBC reports.

“Prechter is right when he says that when manias come to an end, prices tend to retreat to where the mania started,” Faber writes.


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