BALTIMORE ( Stockpickr) -- Want to beat the market in 2014? Focus on the big stocks that everybody hates.
After a 23% rally in the S&P 500 and new all-time highs over the last 12 months, you'd think that equities were enjoying a love-fest with investors right now. But au contraire. Instead, there's a long hate list on Wall Street.
Hate is a powerful emotion in the markets. It's powerful because, more often than not, it's wrong. Over the last decade, buying the most hated and heavily shorted large and mid-cap stocks (the top two quartiles of all shortable stocks by market capitalization) would have beaten the S&P 500 by 9.28% each and every year. That's some material outperformance during a decade when decent returns were very hard to come by.
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