Marc Faber predicts severe correction.

According to this Bloomberg article, Marc Faber predicted the crash of 1987 in the US stock market. He's now predicting a strong correction for global assets. Volatility has come in with a bang in 2007, and sometimes that's a sign of a larger move ahead.

Bloomberg: Global Markets Face `Severe Correction,' Faber Says.

Quotes:

Marc Faber, who predicted the U.S. stock market crash in 1987, said global assets are poised for a ``severe correction'' and says it's time to sell.

``In the next few months, we could get a severe correction in all asset markets,'' Faber said in an interview with Bloomberg Television in New York. ``In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.''

Faber recommends investors steer clear of shares in the world's biggest developing economies after the emerging markets in 2006 outperformed their developed counterparts for a fifth straight year.

....

``Emerging markets could get kicked in the next three months so I'd be careful of buying Russian shares,'' Faber said. ``I'd also be careful of buying China and India shares now.''

Bloomberg TV: Marc Faber.