The bottom of the stock market may be near based on historical trend data, Anthony Bolton, president-investments at FIL Investments International, a division of Fidelity Investments, said today at the NAPF investment conference in Edinburgh.
In the keynote address at the National Association of Pension Funds conference, he said that many worldwide indicators are just starting to suggest a turn for the better, and government aid packages need time to work through the financial system. Its certainly early days, but the crucial time will be in the next quarter, he said.
Mr. Bolton stressed contrarian investing as a major part of his discipline. He said he has begun investing in banks and added that real estate, retail and other financial sectors shunned by many investors are attractive.
Financials very much led this downturn. I think they will be very much at the heart of the upturn, Mr. Bolton said. If you buy a basket of bank stocks today, you will do well over a few years.
Mr. Bolton managed the Fidelity Special Situations Fund from 1979 to 2007, during which time it reported an average annualized return of 20%.