The stock market is going through a bout of irrational exuberance that spells trouble, says Marc Faber, publisher of the Gloom, Boom & Doom Report.

The Standard & Poor’s 500 Index generated a total return of 16 percent last year, and is up 5.7 percent so far this year.

"I am selling shares at the present time,” Faber tells CNBC. “I am reducing positions because there is euphoria building up. … At some point when there is euphoria and everyone is investing, the market moves down.”

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

A correction can start as soon as today, Faber says. “We are very overbought.” But the market may just go through a mild correction in February and then rise again before wiping out in earnest later this year, Faber says.

On the fundamental side, “maybe earnings estimates are overly optimistic,” he says. Revenue growth may disappoint, cost pressure may grow and interest rates are bottoming.

As an alternative to stocks, Faber recommends gold.

David Nelson, chief strategist for Belpointe Asset Management, begs to differ with Faber on stocks. He thinks bonds are the overvalued asset.

“The question comes to mind, which is in a bubble?” Nelson tells Newsmax TV in an exclusive interview. “I say it’s not stocks that are in a bubble, bonds are in a bubble. Investors have to start taking some money out of bonds and moving it to stocks.”

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown