(CNBC) — Not only is a market correction inevitable, but stocks could plunge as much as 50 percent, according to Ron Paul.
The former U.S. congressman and noted libertarian is standing by a correction call he made in August, when he said that all three major indices could lose as much as half their value within a year's time. On Friday, stocks closed at or near record highs, extending a multi-week win streak.
According to Paul, the main cause of this correction could very well be the Federal Reserve, which just days ago signaled its readiness to reverse more of its crisis-era loose monetary policies. Markets are near-certain the Fed will tighten rates at its next meeting in December.
Advertisement - story continues below