{"id":4233,"date":"2014-04-05T18:24:24","date_gmt":"2014-04-05T18:24:24","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=4233"},"modified":"2014-04-05T18:24:24","modified_gmt":"2014-04-05T18:24:24","slug":"time-to-buy-gold-and-other-unloved-funds","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=4233","title":{"rendered":"Time to buy gold and other unloved funds"},"content":{"rendered":"

By Lewis Braham<\/strong>
\nBarron’s<\/em><\/p>\n

On the surface, employing a contrarian strategy sounds simple \u2014 buy what everyone’s selling. In practice, it can be painful to execute. But the evidence indicates it’s worth it.<\/p>\n

According to a Morningstar study, “Buy the Unloved,” if you buy one fund from each of the three most unpopular categories \u2014 those with the biggest outflows in the previous year \u2014 and hold the funds for three years, you can beat the market. Over the past 20 years, this strategy has earned an annualized return of 10.4%, or a 623% compound return. By contrast, the S&P 500 only delivered 9.2% annualized, or 484% compounded. Buying funds from the most popular categories delivered only 246% \u2014 less than half of the unloved’s performance.<\/p>\n

So, this year buy gold, commodities, and high-quality large-company growth funds, as those were 2013’s most unloved categories. Now, clearly, this strategy shouldn’t replace an asset-allocation plan. Morningstar’s director of fund research, Russel Kinnel, recommends that you only put 5% to 10% of your portfolio in contrarian funds, especially in niche categories like gold.<\/p>\n

Continue reading . . .<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On the surface, employing a contrarian strategy sounds simple \u2014 buy what everyone’s selling. In practice, it can be painful to execute. But the evidence indicates it’s worth it.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4233"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4233"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4233\/revisions"}],"predecessor-version":[{"id":4235,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4233\/revisions\/4235"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}