Big Bets for the Brave Investor

Gold, Turkey and Indonesia have been the worst performing sectors so far this year. Do you dare to dabble in a bit of contrarian investing?

Emma Wall 13 November, 2013 | 11:30AM
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Are you the type of person who will bet on a horse that is 200/1 on the outside chance you could change £5 into £1,000? If you can afford to stomach the bumpy ride contrarian investing could be for you.

Contrarian investing - sometimes called bottom feeding - goes against the flow of the market, selecting the assets that others have cast aside. 

Contenders this year are those sectors that managed to haemorrhage cash at an alarming rate. Gold, mining and frontier markets have lost between 45% and 15% this year on average, while UK smaller companies have grown 40% and the biotech sector has stomped home with a massive 57%.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barings Emerging EMEA Opportunities Ord796.00 GBP0.00Rating
BlackRock Gold and General A Acc1,104.29 GBP-3.30Rating
BlackRock World Mining Trust Ord506.37 GBP-2.62Rating
Ninety One Global Gold A Acc £166.27 GBP-3.51Rating
Templeton Frontier Markets A(acc)USD21.30 USD0.21Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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