Major U.S. stock indices may have jumped to record highs after the Federal Reserve's policy pronouncement Wednesday, but they face a bleak road ahead, says Marc Faber, publisher of The Gloom, Boom & Doom Report.

"My sense is that at the present time, the U.S. market is relatively expensive compared to foreign markets, especially to European markets and to emerging markets," he told CNBC and Yahoo's Talking Numbers.

"On a cyclically adjusted P/E [price-earnings] basis, it is actually going to return very little over the next seven to 10 years."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

The Standard & Poor's 500 Index has generated a total return of 28.7 percent so far this year.

Meanwhile, the MSCI Europe Index has produced a 16.2 percent return, and the MSCI Emerging Markets Index has offered a negative 5.9 percent return.

Faber recommends shorting Facebook, Tesla, Twitter, Netflix and Veeva Systems (a computer cloud company) next year, as they are overvalued.

Meanwhile, he is bullish on gold. "Given all the money printing that is going on globally . . . and given that the total credit as a percentage of the advanced economies is now 30 percent higher than in 2007 before the crisis hit, I think gold is good insurance," Faber said.

Many in the gold market aren't so enthusiastic, as the precious metal dropped to a five-month low Thursday.

"I think gold shares are very inexpensive. So a basket of gold shares I think next year could easily appreciate 30 percent."

"A lot of gold investors are anticipating deflation, not inflation, as a result of the Fed announcement [to taper its bond buying], taking advantage of the downside momentum and shorting gold at least temporarily," Jeffrey Sica, chief investment officer of New Jersey-based Sica Wealth, told Reuters.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

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