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Following the herd hasn’t paid off much lately: The stocks that have been most overweighted in portfolios have risen just 0.2 per cent in 2014, says Savita Subramanian, equity and quant strategist at Bank of America.
Following the herd hasn’t paid off much lately: The stocks that have been most overweighted in portfolios have risen just 0.2 per cent in 2014, says Savita Subramanian, equity and quant strategist at Bank of America.
(Thinkstock)

Why it pays to be a contrarian these days

Savita Subramanian argues that going against the grain is more important than ever. But what is the grain these days?

According to Bank of America’s equity and quant strategist, it is a bearish disposition with a preference for cash, defensive stocks and companies that have shown strong growth in a weak economy. Avoid this approach, and you might be able to call yourself a contrarian – and benefit from it.