By Karima Greene
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...