The S&P 500 and Dow Jones Industrial Average could plummet 20 percent from their recent highs, veteran investor and author of the Gloom, Boom and Doom report, Marc Faber, told CNBC.
"I believe globally we are faced with slowing economies and disappointing corporate profits, and I will not be surprised to see the Dow Jones, the S&P, the major indices, down from the recent highs by say, 20 percent," Faber said on Tuesday.
"That is not a big decline. If you can't take a 20 percent decline, don't get out of your bed in the morning," he added.
The S&P 500 peaked in mid-September at 1,474.51 points, while the Dow reached 13,661.87 points earlier this month.
Regarding the U.S.'s Federal Reserve's third round of monetary stimulus measures, dubbed QE3, Faber said: "I don't believe fiscal and monetary stimulus works on the economy. It may have side effects and unintended consequences, but it is not empirically proven that if you throw money at the system you solve any problems."