3 Out-Of-Favor ETFs With Potentially Huge Upside In 2014
David Banister | Dec 31, 2013 12:14AM ET
The best time to buy cheap is when you are afraid to mention your ideas around the water cooler for fear of being mocked by your colleagues. Our work centers on looking for oversold conditions and crowd behavioral anomalies that can give us better low-risk entries with good upside potential. A combination of fundamentals and technicals, combined with Elliott Wave Theory patterns can lead to nice profits with low risk.
For just a few quick ideas that would make sense in this area, we point out 3 ETFs that you could consider entering now as they are way out of favor and very oversold.
Gold Stocks: GDXJ
The Junior Miners index is high risk, high reward. However, if you time the entry right at the opportune moment the upside is very high with low downside risk. With Gold out of favor, we have been pounding the table the last 10 days or so, saying that there are only 4-5 weeks left to buy quality miner names. Instead of picking through them one at a time, you can pick up the high beta play via the Market Vectors Junior Gold Miners ETF (GDXJ).
How about Brazil?
Everyone hates Brazil stocks now, but they have some of the most valuable natural resources in the world, and Brazil almost always bounces back strong off bear cycle lows. Here is a way to play the commodity rebound we see coming in 2014: The iShares Brazil Index, (EWZ):
It’s not too late to eat some Turkey:
Turkey, the country, also often is a very volatile play in which to invest, but going in during very oversold conditions often plays out to the upside for gains later on. The iShares MSCI Turkey ETF, (TUR) is beaten up, which means it’s time to buy.
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