The stock market's run will result in either a 20 percent correction or a more nasty sell off at some point this year, Marc Faber, publisher of the Gloom Boom and Doom report, told CNBC's "Closing Bell" on Thursday.
Faber pointed out that it's been almost exactly four years since the stock market bottomed out. "We're up very substantially, I think investors who today rush into stocks should be reminded of that," he said.
Echoing comments made on CNBC earlier this week by Stanley Druckenmiller, founder of hedge fund Duquesne Capital, Faber said that it will end badly for stocks. "But unlike Stan, I believe it will end badly this year," Faber said.
He sees two possible scenarios. Either a 20 percent correction for stocks and then a move higher, or a scenario that is similar to 1987 or 2000 when stocks rise strongly early in the year only to drop sharply.
(Read More: Marc Faber: 'Market Has Peaked Out')
Faber has been calling for gold to outperform stocks, but acknowledges that the yellow metal has been in a correction. "I'd rather buy something that is relatively depressed than something that is relatively high," he said.
But while Faber expects a correction for equities, he still owns some stocks. "The equities I own, I bought in 2008 and 2009 in Asia," he said. "The Philippines, Indonesia, Thailand, where I have most of my holdings, are up four or five times since then."
Faber added, "I'm not short stocks. But I'm very worried about it."
(Read More: Dow Record 'Eerily Similar' to 2007: SocGen)