Marc Faber says that, in large part because of inflationary pressures, the U.S. and European markets should outperform emerging markets this year.

“We have money printing around the world and particularly in the US and that has led to very high food inflation and inflation in energy prices,” Faber told CNBC. “In low-income countries like China, India, Vietnam and so forth, energy and food account for a much larger portion of personal disposable income than in the United States.”

High inflation in those low-income areas thus significantly reduces the purchasing power of their citizens, moreso than in areas like the U.S., Faber says. “So I think the monetary authorities in emerging countries are going to have to tighten or let inflation accelerate, both of which are not particularly good for equities,” he said. One area Faber says is a good place to be, regardless of whether you’re a bear or a bull: oil and energy equities.