Join our community of smart investors
Opinion

A boot'ful investment

A boot'ful investment
June 13, 2011
A boot'ful investment
140p

There are good reasons why this strategy works more often than not. Technical selling by index-tracking fund managers, who have no choice but to dump their holdings in the laggards, and short-selling by traders riding the downward momentum, have the effect of driving shares of these companies below fair valu, making them heavily oversold. In turn this offers nimble investors the opportunity to buy in just as the selling pressure starts to abate when they exit the index.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in