However, he pointed out that there are stark differences in market conditions today compared to how things were 30 years ago.
"We have from a purely technical point of view, more favorable conditions than in '87," he said. "The market is not as overbought as it was at that time."
But that doesn't mean the contrarian investor is placing his bets on stock markets.
"We are less overbought but we have more unfavorable macroeconomic conditions," he explained. "If I look at monetary and economic conditions around the world, the level of debt is much higher now, the level of government debt is much higher."
Faber still sees similarities in market conditions with 1987.
"A lot of people were accustomed to the bull market... that they kept on selling short, puts," he said. "Nowadays, we have less put selling per say but we have selling short the [CBOE Volatility] VIX index. The short position in the VIX are at record highs.
Anything can happen with the VIX if the market starts to go down. A lot of people will be squeezed and we can have minor declines ending up in a major declines."
Dr. Doom isn't the only one who thinks bad news is on the way.
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