European stocks, which have been in a broad upswing for the past three months, could retreat by up to 20 percent, presenting an opportunity to move back into the market, says Marc Faber, author of The Gloom, Boom & Doom Report.
Faber, who rose to prominence after predicting the stock market crash of 1987, told CNBC on Thursday that he started to buy European shares for the first time in June. That month marked a low for European equity markets, which shed about 15 percent of their value in less than three months.
Europe’s equity markets [.FTEU3 1094.95 15.71 (+1.46%) ] are a safer bet compared to other European assets amid a bleak economic outlook, according to Faber, who said he would use any pull back in the market as a buying opportunity.
“I think European markets could easily correct 10 to 20 percent from the recent highs that we have had, but I don’t envision new lows,” Faber told CNBC Asia’s “The Call.”