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My Best Buys Of The Year

A year ago the economy seemed mired in recession, the FTSE 100 was moribund, and very few people had anything positive to say about stock-market investing.

Fast forward a year, and we have an economic recovery that is gathering steam, and a stock market thathas burst through its trading range. I think now is a very good time to invest in the stock market.

 My picks of the year have comfortably beaten the market, so I thought I’d put together some picks for next year. So, here are my best buys of the year….

Quindell

“Who?” I hear you say. Well, I think Quindell (LSE: QPP) is one of the stock market’s best kept secrets. It is one of the fastest growing companies in the country. In a few brief years it has appeared from nowhere to be a company worth nearly a billion pounds.

Quindell’s business is insurance outsourcing. And it has a growing list of clients that include many of the big names in the insurance industry.

And what is really exciting about this company is that I expect it to grow much more in the next few years. Yet the company is cheap — very cheap. Its P/E ratio is just 7, and will fall further as the company grows. I expect this company to surge ahead next year.

Barclays

This is not the first time I have written about Barclays (LSE: BARC) (NYSE: BCS.US), but a recent fall in the share price has presented a new buying opportunity.

Despite the share price fall, I think the recent raft of positive news about the economy will provide an uplift to the shares. The economy is growing, consumers are spending money, and interest rates may rise sooner than you think.

Plus the investing banking part of the company should benefit from surging share prices. I think Barclays is a strong buy.

China

The emerging markets have had a rough time of it recently. But there are signs that China is pulling out of its trough. Economic, industrial and consumer growth is accelerating. And so, after many months in the doldrums, is the country’s stock market.

The first leg of the China boom was industrial and export growth. We have now entered the second leg of the boom — led by consumer growth, services and scientific research. In my view, the Chinese dragon is reawakening.

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> Prabhat has holdings in Quindell, Barclays, Fidelity China Special Situations and Henderson China Opportuities.