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 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."