If the trend is your friend on Wall Street, it's also the case that there are opportunities and value among stocks that have been abandoned by investors.
While the financial media tends to prefer doom and gloom, genuine opportunity in the stock market is rarely in the headlines. The focus needn't be on what is wrong with the world; we already know that. What's lacking is how you can profit from it.
Precious metals stocks are becoming more and more attractive these days, but I don't think we've seen a bottom yet in gold and silver stocks.
Currently, some of the best risk-capital opportunities in the stock market are U.S.-listed Chinese stocks. It's a sector that's pretty much been abandoned by the marketplace.
The reasons why the marketplace is no longer interested in Chinese stocks are obvious, but at the height of disinterest comes the best prices. By the time interest hits and the story is in the newspapers, most of the money has already been made.
One company that's experiencing a genuine stock market turnaround is China Ceramics Co., Ltd. (NASDAQ:CCCL). And it's doing so ahead of its financial turnaround, which indicates that investor sentiment is warming to the story.
China Ceramics manufactures and sells ceramic tiles to both residential and commercial customers in China. The company stumbled both operationally and on the stock market due to China's planned real estate restraint. The position then met the same fate as virtually all other U.S.-listed Chinese stocks that imploded on the stock market because of the plethora of accounting frauds.
But the tide is slowly turning for many of these listings and there's real value in some turnaround trades. (See "One of the Best Agriculture Businesses You've Never Heard Of.")