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Green energy and advertising in emerging markets are among the sectors to buy if you still want to make money from stock-picking equities, according to a Fidelity fund manager.

Colin Stone, manager of the Fidelity European Opportunities fund said “the time is right to buy growth stocks” and gave examples of some of the sectors in which he was investing.

He claimed industry estimates showed solar power is set to become cost effective in Southern Europe by 2010 because of continued growth in the industry and good use of public subsidies.

He also predicted substantial value to be found in wind power, which is already more cost effective than any other renewable source, while companies that have had long-term production lines for oil exploration machinery over the past three years were also tipped to make money.

Mr Stone backed strong growth in Russian TV networks were he claimed advertising spending, currently at 0.6 per cent of GDP, will increase rapidly up until 2010 and he added online advertising in Europe to be increasingly profitable to stock-pickers “in the next five years”.

Trevor Greetham, director of asset allocation director and head of multi-asset strategic funds for Fidelity, said the economic cycle was on the verge of turning towards the “reflationary period” needed for an equity bull market, but stopped short of predicting how long the period would be.

He said: “We are moving from stagflation to reflation and I think we are getting to the point where central banks will start aggressive rate cuts in Europe, the US and the UK any day now, I am no longer underweight in financials. I think it is the turn of another sector to bear some of the strain.”

He added the return to inflationary economies, coupled with government intervention in financial institutions, would see banks start stabilising and recapitalising, citing a slow decline in mortgage rates in the US as evidence.