Market losers aren’t difficult to find at all. The real trick is to find the ideas that offer a realistic chance of upside. Otherwise, what may appear to be a discount could easily turn out to be a bull trap. It’s here that the financial publication industry attempts to extract alpha from the ashes of volatility. If we’re being honest, though, most of the content amounts to mere opinions.
That’s not necessarily a problem in and of itself. Obviously, whether an investment is truly worthwhile can only be validated in the unknown future. Inherently, any forecast will involve speculation. Still, a massive difference exists between a gut feeling — which can be swayed by circumstances and emotions — and an empirical methodology.
