The sentiment of Mr Market is a powerful force. It can contain great companies with bright long-term futures due to a short-term negative perception. It can also see poor quality companies rise to dizzying heights because they are winning the current popularity contest.
The best place to look for stock buying opportunities is those sectors and stocks where the outlook is the worst.
Everything has a season, everything will have its day. The top stocks of today are likely to be tomorrow’s under-performers. The quality stocks that have been out of favour over recent months will eventually have their day in the sun.
It feels like Mr Market is reaching a tipping point for some of the worst performing sectors and stocks of recent times to make a resurgence. The author has some cautious optimism that this tipping point is close if it hasn’t already been reached.
To out-perform the market and grow your portfolio, check out the stocks and sectors that have been beaten into submission recently by Mr Market.
I will look forward to seeing you where things look the worst despite having an excellent long-term outlook.
This article is published by Dean Mico.
The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.