Hated Stocks Unlock Market as Analysts Prove No Guide to Gains

From Bloomberg:

Nobody saw it coming.

To pick a winning stock at the start of March, you had to find a company that was hated by analysts, adored by short sellers, avoided by institutional buyers and averse to doing just about anything but pay dividends. Shares with those characteristics have generated returns of as much as 5.8 percent even as the Standard & Poor’s 500 Indexstood still, data compiled by Bespoke Investment Group LLC and Bloomberg show.

The unlikelihood of arriving at such a blueprint after a five-year bull market is taking a toll on asset managers, with more than 80 percent of growth and value funds trailing benchmarks in 2014. For investors coming back to the market just as losses in Internet shares approach 20 percent, it’s a lesson on how little past performance says about the future.

“When you are fighting a market trend, you have to choose whether you have to ride it, or you get out of the way,” Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, said by phone on May 8. His firm, which manages $1.1 billion, trailed the S&P 500 in the first quarter and has cut holdings in financial and consumer-discretionary shares while adding to stakes in energy and utilities. “It’s just been a difficult market.”

Read the original article here.

The World’s “Safest” Investment is About to CRASH

The one investment you may hold dear to your heart… the one investment that helps you sleep better at night, that you rely on for safety, security, and maybe even profits in a world gone mad… is about to get slaughtered.

When it happens, trillions in wealth will be wiped out virtually overnight!

To find out exactly what this investment is, click here.

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