Should You Seek or Shun the Most Popular Stocks?

by Mark Hulbert

Popularity is one of those traits whose desirability in the investment arena is difficult to assess without a cold hard look at the facts.

On the one hand, some believe that a stock’s popularity is a good thing, on the theory that whatever factors have convinced so many advisers to recommend a particular stock should make it a better bet than the stocks that no one is recommending.

In this article

Share this article

On the other hand, contrarians argue that popular stocks should be avoided; if given a choice between two stocks with similar financials, they would prefer the less-popular one, on the assumption that it has not yet been discovered. Of course, often there are no such clear-cut choices.

To read more, please become an AAII Registered User or CLICK HERE.

First:   
Last:   
Email:

              
→ Mark Hulbert