Being Contrarian

Elaine's Idle Mind

Sometimes, an equity is so beloved that there’s no one left to buy it. I’m looking at you, late-2012 AAPL. I’m also looking at YOU, priceline.com, with your 97.8% institutional ownership.

Deep thoughts from S&P Capital IQ Chief Equity Strategist Sam Stovall: “If everybody’s optimistic, who is left to buy? If everybody’s pessimistic, who’s left to sell?”

In 2012, the best-performing sector was Financials. In prior years, everyone hated real estate and bank stocks so much that they couldn’t possibly hate it any more.

In 2013, the best-performing industries were Semiconductor Memory and Solar. We’ve been bearish on solid-state anything since Solyndra died in 2011.

When all the experts and forecasts agree, something else is going to happen.

If you bought the 10 stocks in the S&P 500 with the most sell ratings at the beginning of the year, equally weighted, you would have been up 75%…

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