The S&P 500 Index gained 5.5 percent Friday, joining other stocks on a post-Brexit tear that saw markets log their best weekly performance of the year.
Yet perma-bear Marc Faber, editor of the "Gloom, Boom and Doom Report" continues to think there are plenty of hidden risks lurking in the asset markets. Appearing on CNBC's "Power Lunch", Faber warned of a lingering "malaise" and real possibility of a global recession.
"I am concerned that, in their quest to boost asset prices, central banks around the world have created another credit-induced gigantic asset bubble, which will in future either badly deflate, causing large capital losses for investors, or dis-inflate, producing poor future returns," Faber told CNBC on Friday.
Given his long-term negative view about the economy and equities, coupled with a belief another financial crisis is waiting in the wings, Faber is avoiding certain sectors. These include consumer discretionary, technology, biotech and internet-related companies.
But despite his gloomy forecast, Faber isn't sitting on the sidelines completely.
On any future weakness on stocks, Faber urged investors to load up on gold and silver mining companies.
"Precious metals will likely outperform cash and other financial assets in years to come," Faber said. "Investors should accumulate here, or on any weakness, stocks such as Barrick Gold, Goldcorp,NovaGold, Kinross , New Gold, Yamana Gold, Pan American Silver, Coeur Mining, Hecla Mining, Compania de Minas Buenaventura SAA and Pretium Resources,"
In the exchange traded fund (ETF) space, Faber is bullish on the Van Eck Markets Vectors Gold Miners.
His number one emerging economy is Vietnam, and he has also bulked up on agricultural commodities like soybeans.