– Demand driving commodities lower

Faber cites a host of factors including the growing list of companies trading below their 200-day moving average. Iin recent days, “there were [also] more declining than advancing stocks, and the list of 12-month new lows was very high on Friday,” the publisher of The Gloom, Boom & Doom Report told CNBC’s “Squawk Box.” 

The downside risk is lower in already depressed markets outside the U.S., he added. Faber has been predicting the meltdown of U.S. stocks for years, only to see the market climb higher. Faber, who lives in Asia, said he sees “no growth” coming from the economies there, with some countries in recession. As a result, Faber does not see much strength coming from the rest of the world. He called the expansion in Europe “anemic.” 

The situation in Greece, where the nation is receiving bailouts to pay back borrowed money, is “basically Ponzi finance” that can’t last, Faber said.  He’s also concerned about the recent weakness in commodity prices.  “Supplies haven’t gone up that much, and do not reflect the price weakness,” he said. “The prices weakness is because of weak demand.” “May be this the signal that there are strong deflationary forces despite all the money printing by central banks,” he added.

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Dr. Doom: Demand driving commodities lower