Buy energy stocks and US houses, says Marc Faber

Whether you think that we are headed for disaster or facing "a Goldilocks situation" - where things are neither too hot nor too cold - you need some energy in your portfolio, says Dr Marc Faber.

Faber, who writes the Gloom, Boom and Doom investment newsletter, is known for his bearish views and says the current situation in the Middle East is a "nightmare". Speaking to CNBC Faber notes that "Saudi Arabia cannot offset the drop in Libyan production'. What's more "Saudi Arabia itself could be in big trouble (from civil unrest)".

Even if the situation is resolved peacefully, Faber believes the resultant uptick in demand would push up energy stocks. But he wouldn't buy into energy straight away he'd wait for a correction. Citing long-term favourite, gas producer Chesapeake Energy, as an example, he says energy stocks are "overbought in the short-term but not overvalued".

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Perhaps more surprisingly, Faber, who spoke out against the excesses of the US property market in the run-up to the crisis, thinks now is "a good time to buy". He advises Americans "who have money" to avoid "the stock market and bond market which are rigged by the Fed" and instead buy a house. He thinks the property market will "not get much lower". But warns that any purchase "should be a house you buy because you like, not because you think it will go up in value".