"Last year, emerging markets and Europe grossly underperformed the U.S. - say in the case of India by 40 percent," Faber told Bernie Lo on CNBC's Straight Talkshow. "So from the lows in November, the emerging markets have now outperformed the U.S."

According to Faber that outperformance may continue for a bit longer. "Now I think the markets are overbought and a correction is coming very soon."

Despite that, Faber said he liked stocks in Malaysia, Singapore and Thailand because some of them paid a dividend of around five percent.

"I'm not saying the stock market will go up in a straight line, but you understand, if you have zero interest rates and you can get a five percent dividend on shares, it's a reasonably good investment," he said.

Favorite Market

Faber said Japan was his favorite equity market currently, because the yen had broken out of its trading range - weakening past key levels against the dollar.

"The most important for Japanese stocks, for them to perform well, is a weakening yen," Faber said. "I think the Japanese, like everybody else in this world, will print money and once they print money and the yen no longer strengthens, I think there's a good chance that Japanese stocks will surprise on the upside."

Earlier this week the Bank of Japanunexpectedly expanded its asset purchase program by 10 trillion yen and on Friday the yen traded at 79.18, its weakest level versus the dollar in three and a half months.

"I think they (BOJ) realized if everybody is mad, they also need to be a little bit mad," Faber said.

According to Faber, 20 years ago you couldn't go to an investment conference without Japan being one of the main subjects. But now he says Japan is underestimated and doesn't come up in investment committee meetings or conferences even though it's the world's third largest economy.

"I think the Japanese economy isn't in such a bad shape," he said. "They have deleveraged and the household sector is in pretty good shape."