Faber Says U.S. Stocks Are More `Reasonably Priced' Than Others

Faber Says U.S. Stocks Are More `Reasonably Priced' Than Others

By Adria Cimino and Naga Munchetty

May 21 (Bloomberg) -- U.S. stocks are more ``reasonably priced'' than other markets following the dollar's decline, according to Marc Faber, who oversees $300 million at Hong Kong- based Marc Faber Ltd.
``U.S. stocks are not the biggest bubble,'' Faber said in an interview. Emerging markets and the Spanish property market reflect larger bubbles, he said.
Faber predicted on March 29 that the U.S. Standard & Poor's 500 Index was more likely to fall than rise above a six-year high reached the previous month, citing prospects for slowing economic growth. The index has climbed more than 7 percent since then amid a record run of takeovers.
There are bubbles across asset classes, but it's difficult to predict when they will deflate, Faber said.
``We're in the final stages, but the bubble can be very steep,'' the investor said. China's equity market could still double again from this level, he said.
Faber recommended investing in ``depressed assets,'' citing the Middle East market and the Detroit property market. He also said farmland in Argentina and Brazil is a good value and property in New Zealand and Australia may be a sound investment because of their proximity to China.
Faber said he has large positions in real estate and equities in Vietnam.
The publisher of the Gloom, Boom and Doom Report advised investors in 2001 to buy gold, which has since more than doubled. A Zurich native who learned English while picking potatoes in the U.K. countryside at the age of 13, Faber started his own firm in 1990.

To contact the reporter on this story: Adria Cimino in Paris at
acimino1@bloomberg.net .

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