Contrarian guru David Dreman says he’s finding the biggest investing opportunities right now in North American stocks.

Dreman tells Canada’s Globe and Mail that over the long term — the past 25 years — the S&P 500 has basically been in a dead heat with more glamorous foreign markets. And, he adds, “There isn’t a lot of liquidity in markets in developing countries, so you’re taking extra risk for the same gain.”

Asked how he would invest $100,000 right now, Dreman says he’d buy “good-quality stocks in a portfolio large enough to diversify, or, for the average investor, an index fund.” He thinks inflation is going to be a major issue, and says stocks have traditionally gone up when inflation is coming.

Dreman also cautions against following the crowd. “On the whole, investors don’t do as well as markets,” he says. “Even money managers want to buy hot stocks, and they waive their valuation rules. It’s very hard not to go along with something that’s exciting. The Internet, for example, was going to change our lives forever — and it did. But people paid 50 times what stocks were really worth.”