Read More 'Probably too late' to buy US stocks: Marc Faber
"In general, I think individual investors have excessively optimistic expectations about their future returns," Faber said.
The notable bear also underlined his belief that emerging markets provide a more suitable option for more profitable investments. He added that he has parked cash in countries such as Vietnam, Iraq, Malaysia, Thailand, and Singapore.
"I made some investments more than a year ago in Iraq, because it's very cheap. There's lots of problems but the market is very very inexpensive," he said. "Russia is dirt cheap, but I don't think there is a hurry to buy Russian stocks."
A bull run in equities that started around five years ago has caused much debate in recent months with some investors believing that it may be running out of steam. However, some remain optimistic that extra liquidity—provided by central banks around the world—would continue to help bolster the asset class.
Read MoreWe're in a worse position than in 2008: Marc Faber
Ian Harnett, a European analyst at Absolute Strategy Research, believes global stocks will rally another 20 percent in 2014, highlighting the optimal environment that policymakers have created. In its latest monthly research note, Goldman Sachs predicted a pickup in global growth and saw an upside in stocks, most notably in Germany's DAX index.
Meanwhile, Ed Keon, portfolio manager at Prudential's Quantitative Management Associates, told CNBC last week that the stock market low of April 11 had a "pretty good chance" of being a low point, and said the S&P 500 could rise 10 percent this year.
—By CNBC's Matt Clinch