Pursuits
Contrarian-Investor Payoff Seen Lasting in U.S. Stock Turnaround
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Going against the crowd is becoming a rewarding strategy for U.S. stock investors after a period of poor performance, according to Thomas J. Lee, managing partner and head of research at Fundstrat Global Advisors LLC.
As the attached chart illustrates, the Dow Jones U.S. Contrarian Opportunities Index rose more in the first quarter than an equally weighted version of the Standard & Poor’s 500 Index. The Dow indicator, consisting of 125 stocks with equal weights, trailed in 12 of the previous 15 quarters.