Buying Opportunities in Japan and Brazil
Taking a look at emerging markets such as Brazil and developing economies in Asia, but also at stocks that have not yet roused investors' interest such as Japanese companies could offer fresh buying opportunities, as there still are plenty of good shares around, Charlie Morris, manager of global trend fund at HSBC, told "Worldwide Exchange" on Wednesday.
"One third of all the stocks around the world, in the $1 billion cap universe and others are in an uptrend here and now and people are very, very bearish…The point is that there's plenty of stuff out there that you can own," Morris said.
Although the financial sector remains the hardest hit by the ongoing credit crunch, there is still value to be found in it, specifically in emerging market financials, he added.
But the troubles in the banking sector are spreading to other areas, notably the insurance market, with companies like AIG taking a knock.
Morris mentions Banco Bradesco in Brazil and Japanese banking stocks as attractive investments.
Japanese real estate and domestic retailers are also areas of interest and he also likes Taiwanese exporters.
"The most compelling thing about Japan is the value case... The trends aren't particularly good, but none the less, when you look through that, you can see that a bull market has got to come because it is the most under-owned area in the whole world," Morris said.
Another company which Morris sees as an attractive investment is Australian pharmaceutical CSL.
Other areas of strength are energy, materials, industrials and transport, he said.
"In energy, most of the stocks are now very extended from trend. So we have got to look for two other areas that are a little bit further behind. I think probably the integrators still have a lot of value here and now at those levels," he said.
And finally, if investing in the technology sector, Morris suggests staying away from the semi conductor companies and looking at software companies like BMC and Oracle .