The Dow Jones Industrial Average recently crossed 12,000 and investors are feeling exuberant. Although the market has had an impressive run you can still make money investing. You just need to find undervalued stocks and undervalued sectors that have not had a huge run up yet. One of the ways to locate sectors that may be ripe for a move is by looking at last year's losers.
Last year's losers could quickly become next year's winners. The sectors that I would classify as undervalued are the financials, real estate, and consumer cyclicals. Stocks in these areas have not participated in the market advance of the last 2 years and have been largely ignored by Wall Street. Wall Street's ignorance could be your gain. You can start a position in stocks in these sectors and add to it over time. You may just find that you have found Wall Street's next winner by shopping in the discount bargain bin.
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