1987 aka 2012 Crash by Marc Faber

Today I have very important news. According to Marc Faber, we will have a crash like in 1987 in the second half of this year, if there is no QE3. Marc Faber is known to have accurately predicted the 1987 crash. So we better prepare for this event.

As we already can see on the federal balance sheet, there has not been any QE3 since July 2011 (Chart 1).

Chart 1: Federal Reserve Balance Sheet

What happened in 1987 (also known as Black Monday)? And what to do about it? Let's go over all asset classes one by one in this article.