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Market Crash Likelihood Goes Up If Stocks Continue to Rally: Marc Faber

In the near-term, the U.S. stock market is overbought and adding that any more near-term gains portend big trouble for the market, "The Gloom, Boom & Doom Report" publisher Marc Faber told CNBC on Monday.

"If we continue to move up, the probability of a crash becomes higher," Faber predicted in a "Squawk Box" interview, saying it could happen "sometime in the second half of this year."

(Read More: Pimco's Bill Gross: Beware of 'Monetary Red Bull')

By his calculations, Faber said the bull market began four years ago with important stocks recently "breaking down," such as Oracle and FedEx. "Can we go up just on a few stocks like Johnson & Johnson, Procter & Gamble, Wal-Mart, and so forth?" he asked and answered: "Possibly."

"We could on the S&P make a new high," he acknowledged, "but with very few stocks making new highs."

"It's not a very good time to buy stocks," Faber warned, arguing that stocks are not at the beginning of a bull market as many analysts have predicted on "Squawk Box" over the past few weeks.

(Read More: Dow Could Reach 19,000 in 3 Years: CIO)

Meanwhile, Faber said he's worried about the possibility of another financial crisis, which he thinks, could be worse than the one that crushed world markets in 2008. "The next crisis could lead to a deflationary bust. And a bust in governments. In other words, we may have a total collapse in confidence in the system."

Kim Il-Sung Square, North Korea
Gavin Hellier | Photographer's Choice RF | Getty Images
Kim Il-Sung Square, North Korea

He's also concerned about the growing international tensions caused by the threats coming out of North Korea. "Don't think the North Koreans are acting alone," he said. China is in cahoots with the North, he said, despite Beijing's tough talk against Pyongyang over the weekend.

China's foreign minister said it would not allow "trouble making" on its doorstep, while Chinese President Xi Jinping appeared to rebuke North Korea during a speech, in which he said no country should be allowed to cause chaos "for selfish gain."

Faber noted, "In general, [North Korea] is a country that can hardly produce bicycles. They have practically no industries. How can they have nuclear technology? How can they supply weapons to Iran?" He claimed that "China is using the North Koreans" to do their dirty work.

By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC. Reuters also contributed to this report.

Market Insider with Patti Domm