Worldwide, sharemarkets appear to be shaking off lethargy of the past three years. The next upward move will bring major rewards to those willing to invest now - just as the mass of fund investors reach "capitulation stage", withdrawing investments and converting major paper losses into real ones. Latest mutual fund withdrawal figures indicate this "capitulation stage" has now been reached and countercyclical investors are faced with the best international equities opportunity in years.

Theory of contrary opinion

Long utilised for trading volatile futures markets, contrary opinion is equally as useful in analysing stock price trends. Basically the theory states that any market will reverse at some point where the growing percentage of investors believing the current direction will continue, reaches a point where the remaining (and shrinking) number holding an opposing view become completely overwhelmed by panic selling, resulting in a final plunge to the "capitulation stage" of price movement.

Thereafter, having "sold out at the bottom" the number of sellers abruptly shrinks, prices are severely undervalued and countercyclical investors get set to swoop on great opportunities. All evidence suggests this point has now been reached with international equities.

Mutual Funds

Effective international investment requires professional management, huge research resources and full time dedication which few private investors can afford. However, mutual funds provide all this in a convenient package.

Top mutual funds offer the most effective means of accessing recovering stock markets worldwide.