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.

Marc Faber: Western countries in a Colossal Mess in the next 5 to 10 years

World renown economist Marc Faber expressed his opinion that in the next 5 to 10 years the U.S. and other Western countries will be in colossal mess. The author of the Gloom, Boom and Doom report told CNBC tha the reason for that is the debt burden, which will continue to increase in the upcoming times.

"I think the regimes will try to keep the system alive as it is for as long as possible, which means there’s no "fiscal cliff," there’s a fiscal grand canyon," Faber explained.

Faber argued that the political systems in place in the Western world would allow the debt burden to continue to expand. Under such a scenario of never-ending deficits, the West would rack up huge deficits. One day, the system would break, he said.

"Eventually, you have either huge changes occurring in a peaceful fashion through reforms, or, usually, through revolutions," Marc Faber said. The U.S. is getting closer to such a revolution, he added, as is Europe.

"I think the timeframe would be within five to ten years you have a colossal mess everywhere in the Western world," Faber said. "I think the deficit in the U.S. — irrespective of who is in the White House — will stay above a trillion dollars per annum for at least as far as the eye can see."

Bureaucracies in the U.S., as well as Europe, are far too big, he said, and are a burden on the economy. And he gave his recipe for the cure:

"My medicine for the U.S. is: Reduce government by minimum 50 percent," Faber said. "The impact would be immediately an improvement in the economy."

Marc Faber contradicts Jim Rogers in Chinese equities debate

Investment legend Marc Faber and legendary Jim Rogers crossed swords with each other in a head-to-head CNBC interview over the long term value case of the Chinese equity market. They both have established their names among the greatest investors of our times, but their seem to support a different points of view on how to perceive Chinese equities' poor share price over the past couple of years.

Marc Faber explained that it is difficult to be bullish on Chinese equities because since 2007 the Shanghai stock exchange has fallen from 6,100 to 2,074 today, a fall Faber cited as the main reason for his continued bearishness.

Faber is refraining from adding exposure to equities across the board, believing markets are overdue a sharp correction.

"I just want to have a lot of cash, because I think that within the next six to nine months we can buy just about anything 20% lower than it is now," he said.

Jim Rogers sees the share price fall as a value opportunity. He has recently upped his stake in the region for the third time in his career.

"China is going to be the next great country in the world," he told CNBC. "I was violently and vehemently telling people not to buy China when it was going up in 2007. I only buy China when it collapses."

Marc Faber warns not to store gold in the USA

The third round of quantitative easing will give the Fed the opportunity to buy 40 bn dollars worth of bond every month in the future.

November is the month which marks the Hindu festival of lights and both investors and jewelers have scaled up purchases before the prices of precious metals rises any further.

The one of the very few analysts who has succeeded in predicting the current crisis – Marc Faber, however, remains bearish on gold. Faber warns how important it is to store gold but not to store in the US Federal Reserve. He has also said that Ben Bernarke is just a money printer and everything he does will lead to massive inflation and leading to Dow Jones at 20k, 50k or 10m.

As a whole, Marc Faber predicted that the Federal Reserve’s policy will destroy the world and everything will collapse.