Global Investing

Between optimism and pessimism

“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.

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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.

from Funds Hub:

Light at the end of the tunnel?

rtxb5afThere's no shortage of bad news in the financial world at the moment.

But one top hedge fund manager believes that equities could soon be heading for a very sharp rally.

Cazenove's Neil Pegrum -- whose fund made 9.4 percent last year while markets were plummeting -- believes UK equities could soon be enjoying a "March 2003" rally.

While it seems a long time ago now after the market's recent woes, March 2003 marked the start of a 4-year bull market which took the FTSE 100 from less than 3,300 to more than 6,700 and saw clever stockpickers reap huge rewards.