As contrarians, we know we need to buy when everyone’s selling. Because that’s when we get gains like this:
Buying Into the March Crash Was Hard—But It Paid Off
Of course, anyone who sold their stocks in the depths of the March crash learned just how damaging that can be. But if you played the contrarian and bought in March, you did great.
But where should contrarians be shopping today, with US stocks, especially tech stocks, at all-time highs? We’re going to explore beyond big tech and focus on a contrarian hunting ground few investors consider: emerging markets.
One reason why developing economies don’t make it onto most investors’ radar is that they’ve been underperforming: in the last three years, their returns have been a fifth of those of US tech stocks, even as these markets have seen strong growth and technological improvements (especially in less-developed Asian nations).… Read more