History tells us stocks perform well over the next few months and its often the beaten and battered names who shine as investors look for bargains in the battered or underperforming pockets of the market. This can be a very rewarding exercise but 2 important factors must be considered:
- The share market is often referred to as both a voting & weighing machine depending on the timeframe being considered but in both cases stocks are usually struggling for a good reason.
- Stocks have a habit of declining for both longer and further than many imagine which is why MM often adopts a scale in approach when accumulating into weakness.
Obviously there are different sorts of bargains per se on offer in markets at different times but at the moment its only stock / sector relevant as the index hovers close to its all-time high. A quick glance at both Whitehaven Coal (WHC) and Virgin Money (VUK) shows how stocks MM likes and owns have struggled for a few years as opposed to weeks before appreciating sharply reiterating the 2 points above.
