The Swiss investor doesn't expect the rally's disruption to be evoked by any catalyst, as the markets are overbought and sentiment is way too bullish for the so-called Trump rally to continue.

"Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche. I would underweight US stocks," Faber said in an interview with CNBC.

This bearish forecast is not tied to President Donald Trump, according to Faber.

"One man alone, he cannot make 'America great again.' That you have to realize. Trump, unlike Mr. Reagan, is facing huge, huge headwinds — including a debt to GDP that is gigantic, as it is in other countries," he said.

Faber lists rising interest rates and record earnings and margins as additional risks to the historic rally.