Marc Faber: Chinese and Japanese stock markets could see a rebound

Investment guru Marc Faber gave his opinion on the stock markets. He believes the Chinese and Japanese stock markets could see a rebound, while in the U.S. the S&P 500 is likely to see a 20 percent downward move.

"I think here we’re going to go down 20 percent from the recent top at 1,470. The technical position of the market is poor and the corporate earnings are worsening. And I believe that if the statistics were precise – which they aren’t – I think there’s hardly any growth," Faber said.

Four months ago, Faber turned his attention to European stock markets, attracted by the low valuations. Faber recommended buying European stocks at the time and for the first time in his life bought them himself.

"Greece, Italy, Spain, France, Portugal, they were four months ago at the 2009 lows or even lower," he said. "I bought them simply because the valuations were low. Since then, Greece is up 65 percent," he said.

He would no longer buy European stocks, he said. "I expect a correction but no new lows," Faber said.

Now he is focusing on Asia.

"In Asia, Thailand from the 2009 lows is up 250 percent. Other markets like the Philippines, Indonesia, Malaysia, Singapore, are up by a similar amount," he said. The Chinese benchmark index on the other hand was at 6,000 in 2007, now it is at 2,000.

"I think China and Japan could have a rebound here. If Greece could rebound by 65 percent the greatest garbage could rebound by 65 percent," Faber said.