“US markets have performed well since 2009. Emerging markets, including India, will begin to outperform the US markets now. Recent recovery in the US has been concentrated in FAANG stocks, which are not representative of US economy. If you had an index of mom and pop stores, it would look disastrous. Investors should look at stocks that have languished,” the publisher of the
Gloom Boom & Doom Report newsletter told ETNow in an interview.

US markets have soared since March downturn thanks to unlimited supply of liquidity, which has taken the benchmark indices to record highs. Analysts says most of the money has flown in to top tech stocks such as Facebook, Alphabet, Apple, Amazon, Netflix and Microsoft. Rest of the stocks have remained neglected in the current rally.

A similar concentrated buying is also being observed in the Indian market. The rally in RIL stock has made it 14 per cent of Nifty and 9 per cent of the entire market in clear signs of lopsided market behaviour.

Faber said bank stocks that have underperformed globally and they look attractive from an investment point of view.

The Swiss investor is bearish on the US dollar, which he believes may collapse against gold, silver, platinum and even bitcoin. The cryptocurrency has been languishing as well.

“My view is very negative on the US dollar. The Fed will continue to print money irrespective of the US election outcome, as it has no other option. If the central bank prints money, purchasing power will diminish. Add this to recent riots, I do not think anyone can have confidence in the US,” Faber said.

Multiple cities in the US witnessed riots during protests in the past couple of months against police killings. The protests are still going on in some cities.

Faber is, however, bullish on commodities. He said commodities were in the bear market for 20 years. “Agri-commodities are depressed and can rally significantly. But if China slows down, it will impact commodity prices,” he said.

The renowned investor sounded bullish on gold, which has risen significantly this year. The yellow metal has gained 28 per cent year to date, with analysts projecting it to climb further. Silver has outperformed with 51 per cent jump in 2020.

“Gold and silver have done well since 2015. Not many stock markets in the world have managed to outperform gold this year,” Faber said.