Investment guru Marc Faber believes that this is a good time to get rid of assets and park money in two-year treasury bills. Faber says that the two- year treasury bills are still attractive. Bond market is moderately oversold now and could actually rally in the next 1-3 months, he says adding that stock markets ill remain under pressure.

Excerpts from CNBC-TV18's exclusive interview with Marc Faber:

What represents safety in this environment, is the dollar going up here because all other asset classes are falling and the dollar is being perceived as a safe heaven in this environment, what would you buy?

Four weeks ago I was interviewed by CNBC- New York and I told them that I would get rid of my assets and park my money in two-year treasury bills. I think two- year treasury bills are still attractive and the bond markets, which were weak for six months is moderately oversold and could actually rally in the next 1-3 months.

For stocks to make new highs, it will be difficult because if one looks at the S&P, there is a lot of overhead resistance between 1290 and 1320 on the S&P and so I don't think it will go through that level.

A lot of fund managers are saying that on basic P/E's, these markets do look cheap? Particularly in Europe, we should be going back into largecaps?

As a general rule, I would say don't listen to fund managers because they have to be bullish, like real estate brokers are bullish about real estate and art dealers who are always bullish about art prices.

One has to look at markets because it is very common for markets to peak out when they are cheap or perceived to be and to bottom out when companies have huge loses and therefore at that time the markets are obviously expensive.

I think it is fallacy to say markets are cheap, adjusted for inflation, the S&P and the Dow Jones are actually at present times still close to their highest levels ever.

If one looks at the composition of earnings of S&P 500, half the earnings are essentially financial earnings, which could disappear quickly. Looking at how the stock market has declined in the last 10 days and looking at housing stocks in the US, I think the big surprise could be a sudden economic weakness overcoming the US.