A review of John D. Spooner's book provides market insight from this former executive at Salomon Smith Barney. He is a Harvard graduate and lives in Boston.
"Sometimes it is good to buy into America's most hated companies" is one of his chapter titles. He describes his contrarian view. Out of favor good companies when down provides great buying opportunities.
I can illustrate this in my wife's retirement plan at Fidelity. When the housing market tanked we started putting her new money into a real estate mutual fund they offered. It grew 30.51% the first and 5% last year and 3.38% this year. Not bad. A great average being a contrarian. No one wanted in the housing market at that time but it rewarded timeliness and well as time in the market.
Real estate investments are sometimes called REITS or Real Estate Investment Trusts. They usually pay exceptional dividends but grow slowly. Our investment club would not buy REITS because we are looking for growth companies. REITS usually own businesses, apartment complexes, shopping centers, industrial properties and sports complexes.
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