Technology stocks may have suffered a sell-off in the last few weeks, but the U.S. market as a whole is still set for a dramatic correction this year, Marc Faber, the market watcher known as "Dr. Doom" told CNBC Wednesday.
The editor and publisher of The Gloom, Boom and Doom Report said that he personally favors emerging market securities that are still "cheap," adding that he had even made investments in Iraq last year.
"We had already a big break in the market but we haven't had yet the big break in the overall market," he said.
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In early April, the wider technology sector was hit by a selloff in momentum stocks which saw the Nasdaq Composite Index fall below 4,000 points for the first time since early February. Momentum stocks are fast-rising stocks which can unexpectedly reverse when investors fear they have overshot and a bubble is brewing. The Nasdaq Composite suffered its worst weekly hit since June 2012, and recorded its longest weekly losing streak since late 2012.
Telecommunication, social media, and biotechnology companies were all part of the move lower, but Faber believes this selling will eventually hit the wider indexes, with energy and utility companies seeing a sharp pullback. Faber reiterated his concerns that equities were facing a crash that could be worse than the financial world saw in 2008.
"I believe it is too late to buy the U.S. stock market," he said. Faber questioned the future returns of these U.S. stocks, highlighting that record low interest rates and high valuations mean companies will not be able to give back bumper returns to their investors.
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 could rise 10 percent this year.
—By CNBC's Matt Clinch