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Short Term, Markets Are Oversold: Marc Faber

Reporting by Jenny Cosgrave, Writing by Holly Ellyatt
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In the midst of market volatility on concerns over Federal Reserve tapering, a variety of asset classes have sold off too much and could present a near-term investment opportunity, notorious bear Marc Faber told CNBC.

" Treasury bonds , gold (Exchange:XAU=) and equity markets are oversold in the near-term and they can rebound for the next ten days or even the next month," Faber, the author of "The Gloom, Boom & Doom Report," said on Tuesday.

Also known as "Dr. Doom," Faber said that new highs in emerging markets were unlikely and did not see any buying opportunities in emerging markets, yet.

(Read More: What's Behind the Emerging Markets and China Selloff )

"New highs in emerging markets and in high yield bonds are out of the question and if it happened in the S&P, which I don't believe, it would be driven by very few stocks. Longer term the market is far from oversold it still has considerable downside risk everywhere," he said.

(Read More: Dr. Doom Marc Faber: Don't Bet on New Market Highs )

"The economy will weaken and not strengthen globally because if you look at where the growth came from over the last ten years, it came almost 80 percent from emerging economies. These are not growing now and corporate profits will come under pressure and that will have an impact on Western European companies and U.S. multinationals," he added.

"I don't see any buying opportunity from a longer-term perspective yet, short-term some of them are very oversold because they dropped 20 percent or more, so they can rebound, but from a long-term perspective I think they'll still move lower."

He said that if he looked around as a trader, he would rather buy the U.S. ten-year treasury "which is very oversold, where everyone is bearish and where sentiment is terrible" rather than the S&P "where everyone is still relatively optimistic."

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