For months, Marc Faber, publisher of the Gloom, Boom & Doom report, has been a prophet of doom for the U.S. stock market, but no more.
"I'm an investor, and I invest," he told CNBC
. "Do I want to buy European sovereign bonds at a negative yield where I'm sure to lose some money — not a lot of money, but some money — or do I want to be in some blue chip stocks? If I take a 10-year view, I think I will make more money in blue chip stocks."
German five-year government bonds yield negative 0.1 percent.
To be sure, Faber doesn't see U.S. stocks as the most attractive pick available. The U.S. market is "expensive," while European markets are "reasonably priced," he noted.
Emerging market stocks are Faber's favorite long-term choice. "I think that I will make more money in emerging markets than the U.S. in the next 10 years," Faber remarked.
But for short-term safety, Faber recommends U.S. blue chips.
"I was recently at a dinner, and someone said, 'Where are you going to hide when disaster strikes?' I think in blue chip stocks, you will lose less money than in sovereign bonds."
Others are more worried about U.S. valuations. "We have been relatively bullish on the market in recent years and believe the bias for stocks remains to the upside, but investors should be concerned," Dan Greenhaus, chief strategist at BTIG brokerage, told the Financial Times
"One thing is clear, whenever the Fed has raised rates at times when equities are richly valued, it has been problematic for investors." Economists' consensus is that the Federal Reserve will begin raising interest rates around mid-year.
Some experts also are nervous about earnings. The 496 S&P 500 companies that had reported earnings as of Friday, showed blended profit growth of just 3.7 percent, according to FactSet. And analysts predict profits will fall 4.6 percent in the current quarter, it says.
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