Wilbur Ross: Still selling assets but not as fast

Stocks rally due to lack of alternatives: Wilbur Ross
Stocks rally due to lack of alternatives: Wilbur Ross
China rate cut positive: Wilbur Ross
China rate cut positive: Wilbur Ross
Bank of Cyprus turnaround promising: Wilbur Ross
Bank of Cyprus turnaround promising: Wilbur Ross

Despite the seemingly unstoppable U.S. stock market, billionaire distressed asset investor Wilbur Ross told CNBC on Friday he'd advise individuals to be cautious.

"Think about it, we've had all-time highs repeatedly during this year," Ross said in a "Squawk Box" interview. "The obvious corollary of that is there are fewer and fewer really inexpensive things."

On balance this year, the chairman and CEO of WL Ross & Co. said he's been a net seller of assets but at a slower rate since the summer, when he told CNBC he was selling six times more than he was buying.

Stocks were on track Friday for their fifth consecutive week of gains. The Dow Jones Industrial Average ended Thursday at a record for the 27th time this year, while the closed at a record for the 44th time.

"It's almost a lack of alternatives that forces people into equities," Ross said, but noted that earnings growth is "coming through pretty well here."

Global stocks staged a powerful rally Friday on European Central Bank President Mario Draghi's comments on fighting inflation, which were followed only hours later by news the ECB started buying asset-backed securities.

The Chinese central bank's surprise interest rate cut also boosted financial markets.

Read MoreStocks surge as China central bank cuts rates

China's rate cut was a "positive development," Ross said, describing the move as a possible early signal of quantitative easing. "I think they need that."

"We're finding it very difficult to find extreme value in the mainstream markets," Ross said. "We've moved into Greece, into Euro Bank, and now into Bank of Cyprus. That's going pretty far out on the periphery."

Ross has been elected as vice chairman of Bank of Cyprus, serving under the bank's newly elected chairman, Josef Ackermann, formerly CEO of Deutsche Bank.

Ross represents a group of investors that owns 17 percent of Bank of Cyprus.