Why Stocks Are Very Vulnerable

The three major U.S. averages were up slightly Wednesday but have climbed more than 5 percent each in the last three months. In January, Faber told CNBC that "most stocks" would drop between 20 and 40 percent, which seems "conservative."

While Faber did not give a specific prediction for where markets would go from here, he said central banks in the U.S., Europe and Japan have "manipulated" stocks. He added they may not sustain their current levels with slow economic growth in the U.S. and around the world.

Faber said the leading U.S. presidential candidates, former Secretary of State Hillary Clinton and businessman Donald Trump, add more uncertainty to markets.

- Source, CNBC