One of the most bizarre behaviour in the stock market is herd mentality. It’s a bit like fashion. Investing trends can be in vogue one minute, and about as welcome as flatulence in a spacesuit the next.
As with fashion, it would take a brave person to head into the office wearing a psychedelic shirt, kipper tie and loon pants. You can give it a go if you want. But chances are you could find yourself dining on your own at lunch time in the food court.
In a similar way, investors like to buy what is hot today, and ditch what is not. And hot is defined as what everyone else is buying….
…. Those who had bought into stay-at-home stocks and tech shares should have done fabulously well during COVID-19. But those who owned bank, hospitality, office REITs, and oil shares could be licking their wounds.
But here’s the thing....