Marc Faber: This is ‘precisely the wrong time’ for Fed to hike

The Fed is set to raise rates at exactly the wrong time. So contends Marc Faber, the editor of the Gloom, Boom & Doom Report.

The long-bearish market watcher sometimes known as "Dr. Doom" says that, contrary to impressions, the economy in the U.S. and across the globe is slowly improving, "the global economy has decelerated very badly, and many countries are already in recession, or going into recession."

It is in the midst of this apparently tough environment that the Federal Reserve will present its rate decision on Wednesday afternoon. The central bank is widely expected to raise its benchmark target rate by 0.25 percent.

Faber believes that it will do so, but because of his economic outlook, he argues that "if they raise rates, in theory, it's precisely the wrong time."

Read MoreHere's how the Fed actually raises interest rates

Meanwhile, the outlook for American equities looks weak as well, according to Faber.

"I don't think U.S. stocks are attractive by any measurement. They are expensive and earnings are going down, and if anything, eventually interest rates will be higher," he said Tuesday on CNBC's "Trading Nation."

Of course, he has had a bearish outlook on American equities for many years while they have surged.

Meanwhile, when asked where he sees opportunity, Faber turned to Asia, mentioning Vietnam, Cambodia, India, Laos and Myanmar.

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