Dr. Marc Faber: China Will Drag Down US Stocks By 20%

On CNBC:

• ... Specifically, Dr. Faber is concerned about the way in which Beijing’s decided to slam the brakes on growth -- via a sharp reduction in lending.
  
  That he says, will drag down any and every company that soared higher during the recent China boom.
  
  "I would not buy Chinese stocks here," Faber tells the Fast Money desk.
  
  If you agree with Faber’s thesis you might want to short ACH or some of the refineries in China, adds Tim Seymour.
  
  But it's not just China-based companies that will get hit.
  
  "I would be careful of any asset that benefited greatly from the China boom in 2009 because (their earnings) are not sustainable," he tells Fast Money.
  
  That includes a slew of US multi-nationals.
  
  And to make matters worse, Faber thinks as growth slows in China "we will see a lot of excess capacities," and as a result the market could be flooded with excess supply. "Industrial commodities have become quite vulnerable."
  
  Faber expects to see the Dow and S&P “fall 20% from the January highs” in the near-term and perhaps more than that as developments unfold.