Known as a market bear, Faber also said bubbles are forming in some areas. "I see a bubble in everything that relates to the financial sector," he said. "We have a bubble in bonds. We have a bubble in low-quality bonds. We have a bubble in equities. If you look at the financial sector as a percentage of the global economy, it's very large. We have a huge debt bubble, and it's only getting bigger. It's not getting any smaller. "Everything that is in the financial sector is the bubble, and it's been pumped up by central banks." Faber also called "a colossal bubble" in the high-end sector, adding, "Think diamonds and the prestige art and luxury." While the luxury sector has been strong, costs have also been going up and competition has increased, Faber said. "The outlook is relatively favorable, but tastes may change."
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.