‘What’s the most hated sector in the stock market right now?’

That’s a question I like to ask myself from time to time. I find that the answer usually holds some of the best opportunities I can find. In fact, this year’s best performers are a great example of this. Many were absolutely despised only a few months ago and have doubled in price since then.
In this same vein I also ask myself, ‘what’s the most hated asset class right now?’

Long-term bonds have been hated for quite some time. It was about a year ago that Bill Gross was loudly denouncing them. Despite putting in a stellar performance since then they’re still hated today. None other than Warren Buffett and Leon Cooperman have taken up Gross’ banner.

I’m not a buyer but this asset class may continue to make fools of the bears simply because it’s so hated. ‘The market can stay irrational…’