Most investors think that a smart contrarian play is to head in the opposite direction of the market, but the best way to outperform the herd is to head where there is no herd at all, said Ken Fisher, author of 'Beat the Crowd.' Fisher added that noise signals have increased with technology advances so investors can now use sentiment swings as a tool. He said markets can indeed stay irrational for a long time so investors should not bet themselves into a corner. In the current environment, Fisher said investors seeking to beat the crowd should favor European and emerging markets stocks because sentiment is still heavily overweighted in favor of U.S. stocks.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Emerging Markets
China's Huawei Reportedly Open to Selling 5G Chips to Apple
An agreement with Apple would mark a major change in strategy for Huawei.
Citigroup Prepares for Earnings Report Amid Slowdown in Global Growth
Citigroup, the giant U.S. bank, is expected to report first-quarter earnings roughly equivalent to those from a year earlier, even after rival JPMorgan Chase posted a 5% increase. Citigroup CEO Michael Corbat, who this week announced major changes in his senior leadership team, is expected to provide commentary on how the bank is faring amid a slowdown in global economic growth.
IMF Predicts Slowing Growth and Tough Recovery for World Economies
The world's economies are expected to grow at 3.3% in 2019 after 4% peak in 2017.
April's Market Outlook: Is This the Eye of the Hurricane?
Rob Isbitts says the powerful uptrend in global stocks is alive and well, but investors should be prepared for the possibility we are in the eye of the storm, and the lows of 2018 could yet be taken out.