Should You Seek or Shun the Most Popular Stocks?
by Mark Hulbert
On the one hand, some believe that a stocks 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.
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.
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