Marc Faber, publisher of the Gloom, Boom & Doom report, remains bearish on U.S. stocks, seeing valuations as stretched.

"I don't regard this as a very healthy market," he told CNBC. "The U.S. market is in a very dicey position where it could easily drop 10, 20 percent."

The Standard & Poor's 500 index rose 4.46 points, or 0.2 percent, to close Thursday at 1,892.49, within 1 percent of its record high. The index is up 2.4 percent for the year. The index' trailing price-earnings ratio registered 18 as of Friday, according to Birinyi Associates. That's above its historical average.

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Faber isn't too enthusiastic when it comes to Treasurys either, saying there is "nothing attractive" about them.

The 10-year Treasury yield stood at 2.55 percent early Friday, after hitting a 6 ½-month low of 2.47 percent last week.

While acknowledging that U.S. stocks are "relatively expensive," he noted that Europe and emerging markets offered better value.

"If I were to buy equities I would rather go into emerging economies, but I don't think there is a hurry."

"I think we are bracing for a general asset deflation," Faber stated. "I think the system is still very vulnerable. I'm not predicting a complete collapse, because money printing can go on almost endlessly. But it will have . . . unintended consequences."

Many investors say the economy and earnings aren't strong enough to drive stocks higher.

"Once again, we entered the year thinking there'd be a growth acceleration, and . . . people are realizing the economy is not ready to break out," Dan Greenhaus, chief market strategist at New York brokerage firm BTIG, told The Wall Street Journal.

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