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China Stocks Set for Multi-Year Bull Run: Strategist

Thursday, 14 Oct 2010 | 10:25 PM ET

China is the big investment theme with mainland equities set to see a multi-year bull run, said to Puru Saxena, chief executive, Puru Saxena Wealth Management.

“We are of the firm belief that China’s domestic consumption is going to appreciate significantly over the next decade,” he said on CNBC’s Protect Your Wealth.

To take advantage of China’s growth, an investor is spoilt for choice with equities and could look beyond those on analysts’ radar.

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“There are plenty of companies that you can buy today, which are not researched or covered by brokerage houses,” said Saxena. “Within small and mid caps, you have companies where the P/E ratio is low and have high earnings growth and revenue growth.”

About 40-45 percent of his clients’ funds are allocated to such companies in China, he added.

Saxena also favors precious metals and has about a quarter of the assets managed on behalf of clients parked in gold, silver and mining companies.

Included in his portfolio is the energy sector. Saxena believes a worldwide energy shortage and a flood of cheap paper money across the globe will cause oil prices to climb.

“Research reveals that supply for conventional crude oil is peaking on a global basis,” he explained. “Within the next three to four years, world consumption will exceed available supply.”

So how far can oil go? Saxana expects the price of oil to rise “remorselessly over the next two to three years.”

“We think it could go past $147 a barrel within the next five years,” he said.

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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."