"The data miners at Bespoke discovered that the stocks in the S&P 500 that have done the worst since January 6, did the best overall during Tuesday’s climb. Stocks that did the best averaged a 4.39% increase while the worst performers added 18.3%."
My entire portfolio (www.kaching.com/kachin...) was designed partially based around this premise. Of course, I don't want anyone to think that I just randomly went out picking stocks that performed poorly. You can find great stocks that have been murdered in the downturn. It's really all about valuation. Certain industries are cyclical and always perform poorly in downturns and the market tends to overreact. Likewise, these same industries do extraordinarily well in a boom and the market overreacts there as well.
Are the 'Sharks' Waking Up? [View article]
My entire portfolio (www.kaching.com/kachin...) was designed partially based around this premise. Of course, I don't want anyone to think that I just randomly went out picking stocks that performed poorly. You can find great stocks that have been murdered in the downturn. It's really all about valuation. Certain industries are cyclical and always perform poorly in downturns and the market tends to overreact. Likewise, these same industries do extraordinarily well in a boom and the market overreacts there as well.