So what’s the collective mood? Based on the numerous Q&A sessions I participated in, while cautious, investors have a lot less skepticism than they did at the same time last year. The cruisers, a decent cross-section of successful individual investors, now seek opportunity and are more hardened and conservative than in recent years. Scary headlines frighten them little. (Though Michael Lewis and his new bestseller, Flash Boys, confuses and troubles them. We’d be better served by moving it to the fiction section.) Clearly, they seemed willing to look a little further into the future and consider more risk. I presume you have a similar mentality.
The cruisers are now more prone to follow their own ideas and less dependent on us “faculty” than in recent years. (A faculty including Steve Forbes, fellow columnist Marilyn Cohen, tech maven Mark Mills and the legendary Mark Mobius.) I walked away confirmed in my belief that we’re moving from market skepticism toward optimism as postulated in my Jan. 20 and Apr. 14 columns. That means more bull market ahead.
Here are five new names for that later-stage bull move.
The 2013 consensus expectations envisioned 2014 Indonesian trade deficits. Now they foresee surpluses. But inflation is moderating, growth accelerating and bigger surpluses will please. The world’s fourth-biggest country by population is widely expected to be hurt by quantitative easing’s demise. It will actually be helped by it. The big beneficiary will be Bank Rakyat Indonesia (OTCPKY:BKRKY) – at seven times my 2014 earnings estimate with a 2.6% dividend yield.