Investec's four investment themes for 2014

Philip Saunders, portfolio manager of the the Investec Diversified Growth fund, has outlined four investment themes for investors to consider in 2014.

1) Avoid mega-cap dinosaurs Market indices around the world are dominated by companies that have seen better days. They look cheap and offer tempting dividend yields but often face serious strategic challenges. Some will prosper and some rejuvenate themselves, but most are likely to continue to languish. Small caps, mid caps and the smaller large caps are likely to go on outperforming. We prefer quality growth stocks, especially in the cyclical sectors, well-judged recovery stocks and small- and mid-cap stocks around the world. 2) Buy emerging market equities and debt on weakness ...