While stocks are up slightly this year, Marc Faber of the Gloom, Boom & Doom Report says that a “stealth bear market” has been going on under the surface.

“Indices are close to a high, but if you look at the 12-month new highs and the 12-month new lows, even in the last two days when the market rallied, there are far more 12-month new lows than new highs,” Faber said Monday on CNBC’s Trading Nation. He says the gains in broad market indexes are being driven by a relatively small number of stocks that have an outsized impact on those indexes. “This weakness in the overall market … will strike,” he said. “Eventually we will end the year substantially lower.”

Faber also talked about China, saying he believes it is heading toward recession, as well as the currency devaluation going on across the globe. “If all U.S. trading partners devalue their currency, the U.S. industrial machine is becoming less competitive,” he said. “Exports are going to be disappointing and because multinationals have a large portion of the earnings, the diminishing values of foreign currencies will have a negative impact.”

Faber has been predicting big market declines for a while now, and they haven’t materialized. But his outlook doesn’t seem to have changed. “I would recommend every investor to have some money outside the financial market and outside the financial sector,” he said. “I think that gold is still a very desirable asset, especially at this price.”