The signs indicate that the worst of the bear market may be over, both in North America and around the world, according to the money managers at Franklin Templeton Investments.

“Canadians have gone through one of the toughest investment periods on record,” said Don Reed, president and CEO of Franklin Templeton Investments Corp, to an audience in Toronto today.

Reed, who also manages the Templeton International Stock Fund, reminded the audience that the markets have always recovered after a bear market. “Our experience shows that the markets recovered after the bear markets of the 70s, 80s and 90s. And we are now seeing indications that a recovery is likely on the way.”

Reed spoke at Franklin Templeton Investments’ annual Outlook and Opportunities Forum. The event featured speakers on global and international investing, and Canadian, U.S. and emerging markets.

“We are seeing strong evidence of a corporate earnings recovery in Canada,” said Fred Pynn, lead manager, Bissett Canadian Equity Fund. “The Canadian economy has continued to grow and that has translated into stronger corporate profits.”

Pynn indicated that the current Canadian market presented a good opportunity for stock pickers over the next several quarters.

George Morgan, manager of the Templeton Growth Fund, said that “Economic resuscitation measures — especially in the United States — are at full throttle, and we feel the global economy should lift off.”

“Market gloom has afforded us the opportunity to buy many companies, including even some technology-related holdings, at very attractive levels,” he said. “We are investing in companies like Akzo Nobel, EDS, Sony and Reuters, with a view to steady performance over the long-term.”

“Confidence is starting to pick up in the United States as stronger earnings reports are helping to bolster investor resolve,” said Conrad Herrmann, lead manager of the Franklin Flex Cap Growth Fund.

Herrmann, who comes from San Mateo, California, near the heart of Silicon Valley, is also watching the current moves in the tech sector with interest. “To be successful, the current moves we have seen in the NASDAQ and various technology-related industries have to be driven on fundamentals such as orders on the books and real earnings,” he said. “As second-quarter earnings reports are coming in, such evidence is beginning to materialize.”

As for emerging markets, Mark Mobius, lead manager of the Templeton Emerging Market Fund said that “China will continue to grow at a significantly higher growth rate than the developed countries like the U.S. or Japan.”