Famed contrarian Marc Faber has been steadily predicting a stock market crash for the past couple years. Needless to say, that hasn't quite happened. But the publisher of the Gloom, Boom & Doom Report now says that U.S. stocks have entered a "stealth bear market."
"Indices are close to a high, but if you look at the 12-month new highs and the 12-month new lows, even in the last two days when the market rallied, there are far more 12-month new lows than new highs," Faber said Monday on CNBC's "Trading Nation."
In the S&P 500, 37 companies hit a 52-week high in the past week, compared to 34 companies that hit a 52-week low in the same time frame, according to FactSet.
"This weakness in the overall market … will strike. Eventually we will end the year substantially lower," he said.
He said tracking major stock indices won't show the overall weakness in the market because they only include a fraction of stocks and companies. The S&P 500 is up more than 2 percent year-to-date, and the Dow Jones industrial average has fallen about 2 percent.
Faber specifically points to the industrials sector, which has been dragged down by transportation stocks. The transportation S&P group is down more than 13 percent year to date.
He said this weakness will be aggravated by problems overseas, as economies in Asia start to slow.
"If all U.S. trading partners devalue their currency, the U.S. industrial machine is becoming less competitive. Exports are going to be disappointing and because multinationals have a large portion of the earnings, the diminishing values of foreign currencies will have a negative impact," he said.
Faber is well-known for his bearish calls on the market that have yet to come to fruition. He also predicted a 40 percent drop in stocks, and an impending recession in the next six months. Faber said he believes China's economy is heading toward a recession as well.
In preparation for a market crash, Faber supports buying gold, as the commodity has tumbled and continues to trade around multi-year lows.
"I would recommend every investor to have some money outside the financial market and outside the financial sector," Faber said. "I think that gold is still a very desirable asset, especially at this price."
He's also long called for gold and gold miners to rally, a call that has not yet panned out, either.