“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell,” wrote late billionaire investor and philanthropist John Templeton in 1994.
Investors might have done exactly that. After hitting a trough in March 2009, world stocks have gained 83 percent, with many analysts and investors saying that the rally may have further to run.
But with valuations becoming less attractive compared with the absolute trough last year, what should investors buy now?
Scott Phillips, portfolio manager and principal with Lauren Templeton Capital Management, writes in his latest book the following investment themes would maintain their fundamental appeal over the next 5-10 years.
Agribusiness. Booming economies in the developing world especially in China and India helped improve the lifestyles and diets, with protein intakes in these countries rising dramatically. It might be reasonable to expect protein in particular poultry to experience a solid long-term growth pattern thanks to its low cost and healthier attributes. Increasing need for convenience – such as ready-to-eat meals- in the Chinese diet also bolsters demand.