There are fashions for everything: clothes, hairstyles, video games and hashtags on Twitter. And that applies to stockmarkets as well. Who can forget the enthusiasm for TMT (technology, media and telecom) shares in the late 1990s? A new paper~* in the Journal of Portfolio Management suggests that this tendency may provide a strategy for outperforming the stockmarket, based on the popularity of individual stocks. The authors defined the most popular stocks as those that saw the most trading in their shares as a proportion of their market value. These are most likely to be the companies that are in the news, perhaps because they have a hot new product or because many analysts are recommending them.
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