Marc Faber Goes Uber Bullish on Japan and Calls a "Lifetime Buying Opportunity" — I respectfully disagree

Marc Faber made a short appearance on TechTicker today:

legendary investor Marc Faber, the author of the Gloom Boom & Doom report, who gave them a big headline: Faber called the sell-off in global markets a "lifetime buying opportunity" in Japan.

Faber, while reiterating a positive stance on Japanese equities, also told Macke and Nesto that U.S. markets could drop as much as 20% to 30% before becoming attractive on a valuation basis.

Well, Marc Faber has already mentioned he is  very bullish on Japanese and so has Mish, with whom I have respectfully been in disagreement.

There are several reasons for that.

The first is that the earthquake, tsunami and nuclear reactors disasters which have propelled the current sell-off in Japan are just — and it sad and probably outrageous to say it this way — rationalisation for a falling markets that was quite overdue for a very big correction. I have been warning about over-bullishness for quite some, and the Nikkei and DSI chart below — published by ElliottWave on the 3rd of March prior to the disasters — shows that the the level of bullishness was extreme and that a sell off was in the cards irrelevant of the earthquake:

Then, on the short term basis, I expect the dollar to rally and the equity markets all around the world to correct. I do not think that the Japanese market will be able to avoid the correction, given the 100% correlation we have seen across all asset classes since the bottom in March 2009.

Finally, the Yen being so high, there's a fair chance to make losses due to FX risk on the positions, or else that exports in Japan fall.

And I haven't even mentioned the longer term risk of Japan defaulting — which will probably happen a lot sooner than anyone expect — and the current hikes in sales taxes etc. that they have in the deck.