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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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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