Marc Faber is well-known for his bearish take on stocks as well as his theory that the actions of the Federal Reserve will end up crushing the value of the U.S. dollar. And that is precisely why his latest recommendation is so surprising.

When asked whether investors should keep their money in cash on Tuesday's episode of "Futures Now," Faber responded: "Cash, yes. I think the most hated asset at the present time is cash."

(Read more: Taper or no taper, the Fed will never end QE: Marc Faber)

This despite the fact that his monetary view hasn't changed.

"I agree that with the Fed's policy, cash loses purchasing power," Faber said.

The problem is that Faber thinks the market could crash, but only after rising further.

"I think we will go up until it's over," Faber said. In 2013 "I wrongly predicted a 20 percent correction—it hasn't happened. But I think when it's over, it will be more than 20 percent."

Given that nuanced view, "I'm not yet short, but I would look at essentially any rally here in the U.S. market as an opportunity to lighten up on positions," Faber said. "And I don't think people should buy stocks".

(Read more: Scared or not, you have to buy stocks: BlackRock's Koesterich)

In addition to staying in cash, Faber also recommends buying gold miners.

"Of all the asset classes that I look at," Faber said, "the one that stands out as being extremely depressed is the precious metal sector, and in particular, precious metal equities."

—By CNBC's Alex Rosenberg