U.S. Dollar, Stocks May Both Advance 10%, Biggs Says

(Bloomberg) -- The dollar and U.S. stocks may keep rising together as economies improve around the world, reversing the relationship that held between March and November, hedge- fund manager Barton Biggs said.The currency is undervalued against the euro and yen and the economic recovery is “gaining momentum,” he added. Gross domestic product will increase 2.6 percent next year after contracting 2.5 percent in 2009, according to the median economist forecasts in a Bloomberg survey.Bullish bets that Biggs made during the worst of the credit crisis are giving his six-year-old firm its best returns ever. His view on the dollar echoes the forecast from Marc Faber, publisher of the “Gloom Boom & Doom” newsletter, who told Bloomberg Television today that currency dollar may appreciate 5 percent to 10 percent against the euro in the near term while equities advance.

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