Out-of-favor investing

Just what is out-of-favor investing?

Simply investing in stocks, sectors or industries that have fallen out of favor and are currently not popular.

Technical analysts would view these sectors and stocks as "oversold" and exhibit the following technical characteristics:

• low Stochastic readings (below 25)

• low Relative Strength Index readings

• low Money Flow / increased Distribution levels

• negative MACD readings

Contrarian investors seek out-of-favor stocks and sectors because they they feel they can purchase these securities at very reasonable (or low) prices, and the returns will be greater once that sector or stock does come back into favor.

Is there an easier way to invest in out-of-favor sectors and minimize my risk?

Yes - investing in Exchange Traded Fund is a simple way to get exposure to almost any sector of the economy, while still maintaining adequate diversification to minimize company specific risks. 

Timing is critical using this strategy - read and follow our free report and pay attention to the out-of-favor sectors at the bottom of the rankings that are starting to rise.