Are yesterday's losers tomorrow's winners? (II)

Article by Simon Landt

At the beginning of 2024, we investigated whether it was worth investing in sectors that had performed relatively poorly in the previous year at the turn of the year. The result was clear: sticking rigidly to this simple investment strategy would not outperform a passive investment in the S&P 500 on the US equity market in the long term.

Is it still possible to derive a profitable investment strategy from the loser-winner approach if the selection is not made at sector level but at individual stock level? In other words: Is it worth investing in the relative loser stocks of the previous year - regardless of which sector they come from? Find the answer in today's issue. 

Read our analysis here