Recovery in oil sector could give stocks a shot in the arm
by Sue Chang
Fund manager Marc Faber, known as Dr. Doom for his generally grim market calls, has turned bullish on stocks—in the short term in any case.
“The market in February became extremely oversold, and from this extremely oversold position, we can have a relatively strong rally,” said Faber in an interview with CNBC on Wednesday.
Faber notes that the so-called momentum stocks, which have outperformed the market in 2015, are likely to rebound in the wake of a massive selloff earlier this year while the oil sector could also recover by 10% to 20%.
The combined impetus from oversold momentum shares and oil could propel the S&P 500 to around 2,050 but not to new highs, he said.