Buying at the Point of Maximum Pessimism: Six Value Investing Trends from China to Oil to Agriculture

Chapter 5. A New Landscape for Investors

Since the world began to recover from the extreme stress of the financial crisis, it has become increasingly important that investors in search of the highest long-term returns over the coming years distinguish from among the world’s thousands of publicly traded companies some of the more attractive opportunities. Without a structure or framework to draw on, this could prove a difficult, if not daunting, task. On the other hand, depending on your perspective, there are tens of thousands of stocks to choose from in the world’s markets, so the possibilities are numerous.

If all investors have come to recognize one phenomenon (and, if not, this chapter may help), that phenomenon is the entrance of several ...