Faber Says Global Economy at `Tail End' of Growth

By Shani Raja

July 21 (Bloomberg) -- Marc Faber, who told investors to bail out of U.S. stocks before 1987's so-called Black Monday crash, said the global economy is at the ``tail end'' of its growth.

Oil prices may fall to $100 a barrel though demand in Asia will rise, Faber, who publishes the Gloom, Boom & Doom Report, said at an investment forum in Sydney today. The investor said he's favoring real-estate investments in India and Cambodia.

``What you've had since 2001 is a global synchronized boom,'' Faber said. ``In the history of capitalism this is most unusual. When it comes to an end it should affect all countries.''

Stock indexes worldwide have tumbled this year, erasing almost $12 trillion in value, as financial institutions piled up more than $400 billion in losses from credit investments, and investors braced for a U.S. economic recession amid soaring fuel and food prices.

U.S. economic growth faces ``significant downside risks,'' Federal Reserve Chairman Ben S. Bernanke said July 15. Those comments contributed to crude oil in New York falling more than a 10th from its record high of $147.27 on July 11.

Faber told the forum today that he prefers holding physical commodities rather than shares or futures.

Oil, corn, soybeans and wheat have surged to records this year, amid rising incomes in emerging markets. Macquarie Group Ltd., Australia's biggest investment bank, said earlier this month that global demand for food will continue to drive a rally in soft commodities.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.