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

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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Baring Emerging Europe Ord646.00 GBX-1.07
BlackRock World Mining Trust plc446.00 GBX-1.11

About Author

Emma Wall  is former Senior International Editor for Morningstar

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