Rally in stocks has further to run, Marc Faber says

The rally in equities still had further to run, one of the most erstwhile 'bears' in the market said on Wednesday.

In remarks to broadcaster CNBC fund manager Marc Faber, referred to by many traders as 'Dr.Doom' because of his famously downbeat views on stocks, said shares had become "extremely oversold" in February, possibly paving the way for a "relatively strong rally".

“The market in February became extremely oversold, and from this extremely oversold position, we can have a relatively strong rally,” Faber told CNBC.

So-called 'momentum' stocks, which paced gains last year, were likely to rebound, with a recovery of between 10% and 20% also possible in oil sector stocks, he said.

Combined, advances in both might propel the S&P 500 up to around the 2,050 point mark, Faber argued.

He did not expect the benchmark gauge to notch new highs.

“If new highs happen, they will happen with very few stocks participating,” Faber told CNBC.

Nonetheless, any bounce would be short-lived, Faber added, as the economic slowdown around the globe weighed on shares, with the US unlikely to avoid the drag from weak markets overseas.