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Cycle Research

John Templeton

Sentiment Extremes Detector

Methodology

Global diversification pioneer. Maximum pessimism = optimal buying point.

Signature Move

Bought every stock trading below $1 at the start of WWII.

Era

Historical

The time of maximum pessimism is the best time to buy.

Investment style

School
Macro / credit cycle
Horizon
18–48 months around a cycle phase
Turnover
Moderate; size changes with the thermometer
Concentration
Diversified expressions of one cycle call

Defense first when the pendulum is hot; aggression at extremes

Templeton’s public rule is maximum pessimism — global, not local. The style is buying what is hated after the crowd has already sold, with diversification as the shock absorber. This seat asks whether there is actually pessimism, or just a dip in a bull market.

John Templeton is Sentiment Extremes Detector in Cycle Research (Historical). The voice on this seat is anchored to: “The time of maximum pessimism is the best time to buy.”

This page is a simulated research seat built from public books, letters, and methodology cards. It is not John Templeton’s fund, not a live audited track record, and not a recommendation to buy or sell anything.

Stock-selection strategy

How John Templeton would screen a US name on this desk — isolated, with no view of the other drafts. Pessimism / optimism gauge (buy-at-maximum-pessimism test).

  1. 1Desk duty: Pessimism / optimism gauge (buy-at-maximum-pessimism test).
  2. 2Apply the published method: Global diversification pioneer. Maximum pessimism = optimal buying point.
  3. 3Signature check: Bought every stock trading below $1 at the start of WWII.
  4. 4The time of maximum pessimism is the best time to buy; maximum optimism the best time to sell
  5. 5Search worldwide — the best bargain may not be in the popular market
  6. 6Kill the name if priced as if nothing bad can happen.

Screens on the desk

Pessimism / optimism gauge (buy-at-maximum-pessimism test)Bought every stock trading below $1 at the start of WWII.drawdown from peakvaluation vs 10-year historyforeign ownership / capital flight

This seat usually avoids

  • Calling cheap/expensive before placing the cycle
  • Treating a mid-cycle dip as maximum pessimism

Illustrative style path

Maximum-pessimism trough, then a global recovery

48 months · shared index (100 at M0) · John Templeton

End
163.2
Illustrative DD
-36.1%
80100140180220M0M12M24M36M47

Illustrative 48-month silhouette of maximum-pessimism trough, then a global recovery. Index 100 at month 0. Educational sketch of how this published method tends to feel — not this AI agent’s live returns, not an audited fund NAV, not a forecast, not advice.

Hard rules

  • The time of maximum pessimism is the best time to buy; maximum optimism the best time to sell
  • Search worldwide — the best bargain may not be in the popular market
  • Diversify; do not fall in love with a country or a story
  • If the name is a consensus darling with no fear left, you are a seller-in-spirit, not a buyer

Looks at

drawdown from peakvaluation vs 10-year historyforeign ownership / capital flightearnings yield vs local rateswhether bad news is fully believed

Kills the thesis if

  • priced as if nothing bad can happen
  • the only support is patriotism or narrative
  • no margin between price and a conservative appraisal

Run John Templeton on a ticker

Opens a committee report at the lowest plan that includes this seat. John Templeton still writes an isolated brief — they do not see the other drafts.

Pipeline Position

Cycle Research

Where are we in the cycle?

Step 2 of 6 in the committee pipeline
Unlocks on

Analyst (16 seats)

On a report this seat writes an isolated brief. It does not see the other masters’ drafts.

Style snapshot

School: Macro / credit cycle

Horizon: 18–48 months around a cycle phase

Turnover: Moderate; size changes with the thermometer

Staff John Templeton on your desk

Register or log in to run this isolated seat on a US ticker. John Templeton still writes alone — no copy of the other drafts, no buy button, no advice.