Jan. 7 (Bloomberg) -- U.S. stocks may rise through March, helped by Federal Reserve interest-rate cuts, after getting off to their worst start since 2000, investor Marc Faber said.

Gold and commodities may peak this week and then have a ``meaningful correction,'' said Faber, the Gloom, Boom & Doom report publisher who advised investors to buy gold at the start of its six-year rally.

U.S. stocks ``have sold off quite a bit and on a near-term basis they're oversold,'' said Faber, whose Hong Kong-based Marc Faber Ltd. manages $300 million. Faber told investors to bail out of U.S. stocks a week before 1987's so-called Black Monday crash, according to his Web site.

The S&P 500 benchmark retreated 4.5 percent to 1,411.63 last week, 5.3 percent below its average close for the past 200 days. The Dow Jones Industrial Average slumped 4.2 percent to 12,800.18 and posted the worst start to any year since 1904, according to Bloomberg data.

American equities may outperform emerging markets for three to six months because ``the U.S. has grossly underperformed anything on the planet,'' Faber said. The S&P 500 gained 3.5 percent last year, compared with a 36 percent climb for the MSCI Emerging Markets Index.

`Cutting Interest Rates'

Faber still advised against buying stocks, saying they will fail to reach a record and are less attractive than other investments.

``If you create a very favorable environment for equities by cutting interest rates like the Fed will continue to do, it doesn't mean they're good investments compared to other investments that are available,'' he said.

Faber recommended holding U.S. dollars, which may rebound after falling to a low against the euro in November.

On Oct. 2, Faber said the Federal Reserve acted ``like a bartender'' in lowering interest rates and its actions were contributing to a stock market bubble in the U.S.

Faber correctly predicted in May 2005 that stocks would make little headway that year. The S&P 500 gained 3 percent. He also told investors to buy gold in 2001, before it more than doubled.

On March 29, Faber said the emergence of home loan concerns meant the U.S. stock market was unlikely to benefit from the conditions that supported its rally since June 2006. The S&P 500 climbed 10 percent between then and July 19, when it reached a record, and again reached new highs on Oct. 5 and Oct. 9.

In February 2004, he said stocks in Brazil and Argentina were expensive because investors were overestimating China's demand for commodities. Brazil's Bovespa index has since more than doubled while Argentina's Merval Index has gained about 88 percent.

To contact the reporters on this story: Eric Martin in New York at emartin21@bloomberg.net; Carol Massar in New York at cmassar@bloomberg.net.

Last Updated: January 7, 2008 12:13 EST