"We have a bubble in everything, everywhere," the publisher of The Gloom, Boom & Doom Report told CNBC's "Squawk Box" on Friday. Faber has long argued that the Federal Reserve's massive asset purchasing programs and near-zero interest rates have inflated stock prices.
The catalyst for a market decline, as he sees it, could be a "raise in interest rates, not engineered by the Fed," referring an increase in bond yields.
Faber also expressed concern about American consumers. "Their cost of living have gone up more than the salary increases, so they're getting squeezed. So that's why retailing is not doing particularly well."
A real black swan event, he argued, would be a global recession. "The big surprise will be that the global economy slows down and goes into recession. And that will shock markets."
If economies around the world can't recovery with the Fed and other central banks pumping easy money into the system, that would send a dire message, Faber added. He believes the best way for world economies to recover is to cut the size of government.
There's a dual-economy in the U.S. and around the world with the rich doing really well and others struggling, he said. "[But] the rich will get creamed one day, especially in Europe, on wealth taxes."
On the other end of the market spectrum, longtime stock market bull Jeremy Siegel told CNBC on Tuesday (ahead of Wednesday's Fed policy statement leaving interest rate guidance unchanged) that he stands by his Dow 18,000 prediction.
The Wharton School professor sees second half economic growth of 3 to 4 percent, S&P 500 earnings near $120, and the start of Fed rate hikes in the spring or summer of 2015.