The stocks Marc 'Dr. Doom' Faber actually likes
Marc Faber is not exactly known for his rosy outlook on equities. On Thursday's "Futures Now," he made the case that 2013 looks an awful lot like 1987, which is why he expects the market to drop 20 percent or more by the end of the year. (Read: Marc Faber: Look out! A 1987-style crash is coming)
After all, there's a reason he's known as "Dr. Doom" rather than "Dr. Feelgood."
But that doesn't mean he's universally bearish on equities. In fact, there's one sector that he's quite excited about right now.
"I think there's one group of stocks that should appeal to people who say 'I want to buy low and sell high,' and this is the gold mining sector," Faber said. "In general, the gold mining sector is incredibly depressed."
In general, two different factors have weighed on gold miners. First, gold mining stocks have always tended to be a leveraged way to bet on gold—meaning that as gold rises or falls, the miners tend to make a larger move in the same direction.
Indeed, as gold has dropped, miners' fundamentals have gotten destroyed. For the second quarter, the S&P 500 Metals and Mining industry had a bigger earnings decline than any other industry group, as earnings fell 78 percent (according to FactSet).
But the leveraged factor still doesn't explain why the Gold Mining Index is down 30 percent over the past five years, while gold is still up 50 percent. The second issue is that the SPDR Gold Trust has given retail investors a simpler way to bet on gold. So many who owned miners simply to get gold exposure went ahead and bought the gold ETF instead.
Still, Faber thinks gold will rebound, and save gold miners in the process.
"I like [gold] here relative to other assets—to paintings, to collectibles, the Manhattan high-end property, to Hamptons property, to the Dow Jones, the S&P, the Russell 2000. I think gold is relatively cheap," Faber said.
(Read more: Gold is a trading affair, so here's how to trade it)
Faber takes aim at the many voices that have gotten bearish on gold. "All these supersmart Fed watchers and Fed members and superbears about gold, they came out with sell recommendations on gold—these are all people that never owned an ounce of gold in their life!"
The most memorable recent bit of anti-gold sentiment probably came from Federal Reserve Chairman Ben Bernanke himself.
On July 18, Bernanke told the Senate Banking Committee: "Gold is an unusual asset. It's an asset that people hold as sort of disaster insurance. They feel if things go really badly wrong, they'll at least have some gold in their portfolio … [which is] not all that accurate. A lot of people hold gold as an inflation hedge, but the movements of gold prices don't predict inflation very well, actually. … Nobody really understands gold prices, and I don't pretend to really understand them, either."
(Read more: The new warning sign for gold)
But Faber still believes in bullion. "Basically, gold has had a huge correction, sentiment is ultrabearish and the gold mining stocks have been decimated."
So what stocks, specifically does he like?