Stockmarkets: Where the herd is heading now

The key to successful investing involves going against the herd. But finding overlooked opportunities can be difficult.

Everyone knows that the key to successful investing involves going against the herd. But finding overlooked opportunities can be difficult. Enter Dylan Grice of Socit Gnrale. He has examined herding among analysts by gauging levels of research coverage relative to a stock's value. Using global data going back to 1987, it's clear that "the sectors most loved by them underperform those which are most neglected by them".

Grice found herding is most pronounced in the construction and clothing sectors. Analysts' least-loved sectors are the defensive ones MoneyWeek has been recommending for some time, including tobacco, energy, drinks and drugs.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.