It feels wrong, but most of the time this simple move will result in buying stocks that outperform the market… by a huge margin. I’m talking about taking the other side of Wall Street analyst’s bets, when it makes sense.
Investing in stocks that Wall Street hates can be an incredibly strong strategy. The approach uncovers a lot of “diamonds in the rough” that often present significant opportunities for upside surprises. But you’ve got to be careful when deploying the strategy.
Buying the “Most Hated” stocks only works when you add two key factors into your trading analysis.
This post originally appeared at Money Morning.