Business Day reports:
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Dr Faber told CNBC. "And I suspect it will be even worse."
Dr Faber's prediction comes after another high profile investor, Jeremy Grantham, said last month the ''next bust will be unlike any other''. The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011.
As for whether the Dow Jones (which has been trading at a rather more realistic average valuation despite a bonanza run over the past half decade) sees a 1987 style crash in the next 12 months, only time will tell.
There has been plenty of debate as to whether that particular crash was exacerbated by automated trades and computerised stop orders being activated.