There's plenty of room for the stock market to decline, noted bear Marc Faber said Thursday on CNBC. "Yes, I see further downside," said the editor of "The Gloom Boom & Doom Report."
However, Faber said that there were plenty of reasons for stocks to head lower other than what the Federal Reserve was doing in terms of quantitative easing. "I think the markets are worried about something else," he said on "Fast Money."
Faber noted that interest rates have been rising for a year, pointing to the 30-year U.S. Treasury bond and the 10-year U.S. Treasury note bottoming out in July. "So, we've been in an uptrend in interest rates," he added. But that wasn't the whole bear case. "The Chinese economy is much weaker than the official statistics suggest," Faber said.
"My view would be that at the present time, the Chinese economy is growing at something like 4 percent per annum, and without huge credit expansion there would probably be no growth at all."
Other emerging market economies were also poised for poor growth, he added. The outlook for gold and other metals were not great, either.
"Technically, commodities look horrible," Faber said, adding that for precious metals "some technical factiors would suggest that we're approaching at least an intermediate low." Read more >>