Why would anyone choose the worst performing countries? We know that chasing the countries with the best returns doesn’t pay off.
Mean reversion is tough on investors who ignore their plan and chase returns.
We make it harder on ourselves by investing with a wandering eye. Markets revert because investors act irrationally, ditch their plans at the worst possible times, and chase performance. These investor mistakes are a big argument for a simple buy and hold strategy which works well over time.
What if you tried a different approach? A contrarian might look at the biggest losers. Continue Reading…