The stock market is driven by investor sentiment with share prices often trading nowhere near their true fundamental value. One way to take advantage of this is to adopt a contrarian strategy and look for out-of-favour companies with the potential to turn things around.
Those who rely on this approach use various techniques to identify stocks where they have a high degree of conviction that the market has got it badly wrong. They then open a position and wait for the shares to be re-rated.
This sort of strategy requires a lot of courage because it means going against the herd and having enough faith in your stock picking skills to maintain the investment until the market proves you right.
by Zak Mir| Trading| 1 mins. to read It would appear that the newsflow for star small-cap resources prospect Serica Enegy (LON:SQZ) has been rather thin.
Zenith Energy Ltd. is an international oil & gas production company listed on the Canadian TSX Venture Exchange (ZEE) since December 2008 and recently, in January 2017, achieved dual listing on the London Stock Exchange (ZEN).
by Robert Stephens | Equities | 5 mins. to read Investing in a retailer with exposure to the UK economy may seem foolhardy given the prospects for UK plc.
by Richard Gill | Equities | 11 mins. to read According to finance theory there are three components to the total return which an investor can make from a share.
by Zak Mir | Trading | 1 mins. to read It has not exactly been an easy ride in terms of the recovery at Ascent Resources (LON:AST); but of course, that is where we get the stock market adage regarding a wall of worry.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such descision.
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