Dr Doom: The US faces a Black Monday-style crash

US markets could be heading for a 1987-style crash, according to Swiss investor Marc Faber.

The S&P 500 has rallied 19% year-to-date, as signs the US economy is finally recovering from the financial crisis boost investor optimism. But Faber (pictured), dubbed ‘Doctor Doom' for his persistently bearish views, said the US equity market is exhibiting strikingly similar characteristics to those seen in 1987. That year saw US equities post 30% gains from the beginning of the year to 8 August, before plummeting 36% to the lows of October's ‘Black Monday'. "In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very ov...