Marc Faber undeterred that stock market to collapse as much as 30%

Boom and then doom. That’s how one contrarian investor is foreseeing the stock market in the coming months.

For the past couple of months, Marc Faber, legendary investor and publisher of the Gloom, Boom & Doom Report, contended that the United States stock market will eventually dramatically fall from their repeated record highs.

Speaking in an interview with CNBC on Monday, Faber predicted that stocks will peak within the next 30 to 60 days, and then a 20 to 30 percent decline may follow and transpire by October, citing that some stocks are already down by 10 to 15 percent.

According to Faber, the Federal Reserve has amplified stock prices through its enormous easing initiative, a mixture of $85 billion in stimulus and ultra low interest rates. Also, U.S. companies that have a large sum of cash at hand aren’t necessarily expanding their capital expenditures. Adding to airline stocks falling 10 percent, homebuilders dropping 15 percent and the Russell 2000 index of small-cap stocks descending two percent, signs of a serious correction are showing.

“What they do is to buy other companies, because their currency, their shares, is a good way to buy other companies,” averred Faber. “There has been very little individual buying.”

If one is looking to circumvent the substantial losses in the U.S. stock market, Faber recommends that investors should think about allocating their money into Hong Kong and its stock market.

“I would buy Hong Kong shares because I think that the Chinese stock market is breaking out on the upside, and that will lift also Hong Kong shares. So that is a trade I would do at the present time,” Faber added.

Last month, Faber explained that asset prices are in “a colossal bubble” and it’ll eventually burst.

“I don’t believe that the global economy is strengthening; I rather think the global economy is weakening,” he said.”There are other issues that may put the weight on the markets that will push prices lower. A, I think that we have in the White House, a very poor president, and that may lead to some political issues in the U.S. domestically. B, we have numerous political issues to consider, And C, we could have, potentially, a much higher oil price.”