Late Bloomers Look Ripe
As is often the case, the current market advance has left some companies behind. Last year, financials underperformed an otherwise flattish market, yet so far this year they are big winners. Identifying market laggards can be an effective way to invest before the market has a change of mind. In doing so, one is often buying in at a much more favorable price that minimizes the downside and opens up a lot of upside potential.
Because of Apple's (AAPL) continued historic share performance, the technology sector has performed very well in 2012. But that's because as Apple shares become more expensive, they have a greater effect on the performance of the respective indices to which it belongs. Apple shares are up more than 50% in 2012, while the Nasdaq is up nearly 20%. Yet Google (GOOG) shares haven't done anything in 2012 despite the fact that the company continues to grow its share of the online search market and the advertising fees that come with that dominance. While the share price isn't going up, profits and cash flows are, and it's only a matter of time before the latter starts to have a positive effective on the former....409 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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