"If you take say, the Dow Jones or the S&P in real terms, in other words, inflation adjusted or the market cap in the U.S. as a percentage of GDP... it's still close to a hundred actually, it's not at 75 (percent), and by historical standards, it’s still very high," Faber said.
(Watch the full Marc Faber interview on Asian markets)
Faber feels that Asian markets are far better value that U.S. equities -- you get paid to wait in Asia -- and Faber doesn't see a huge downside risk, but rather an upside potential.
"If you look at the dividend yield in Asia compared to the bond yield, it's about three times higher. So even though we will have dividend cuts for sure, I think that as a shareholder, you begin to be paid by waiting," Faber asserts.
Faber, better known as Dr. Doom, believes that there still is tremendous downside momentum in the global economy.
" ... We fell off a cliff, and now the news will remain bad, but maybe not quite as bad as over the last few months. And then the Goldilocks crowd that is always around us, and will never give up -- no matter what -- they will say now, see the global economy is improving. Let’s buy," Faber adds.