Momentum investing, which involves purchasing companies with positive price momentum, is also gaining traction. Contrarian investing, on the other hand, is purchasing equities that are out of favour or are undergoing a temporary downturn with the prospect of a future return.
For risk-averse investors, defensive investing entails selecting stocks from stable sectors such as utilities and consumer goods, which tend to do well during economic downturns. Furthermore, income investing focuses on dividend-paying stocks.
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