Asian markets much cheaper than US markets which are in 'bubble zone'

The US markets are in a financial bubble not just in stocks but in bonds and if the equity market drops 20 percent, it still would not make him bullish, the editor of The Gloom, Boom & Doom Report, Marc Faber, tells CNBC in an exclusive interview.

The bubble is in most popular stocks such as Netflix, Amazon etc. which are great companies but are highly priced. We have this liquidity bubble and I would rather invest in Europe than in the US, where valuations are lower and where the economy seemingly is improving," he added.

Commenting on the Asian markets, Faber said markets in Asia is far cheaper than the US, and if we just do a comparison of US markets with the rest of the world, it is at the highest level ever.

The US market rallied to record highs soon after taking charge as the US President in the year 2016 on expectations of tax cuts and infrastructure spending, but some of his policies have resulted in US Dollar weakness.

“Trump is good for markets and the economy. But, if I go back, then some of his policies and statements have not been very favourable for the US, which is partly reflected in the EURO Dollar weakness. The Euro has gained over 6 percent against the US Dollar, said Faber.