One strategy investors use is to look for investments that are currently undervalued. This is called value investing.
Not all investors choose the most popular stocks. Some deliberately choose stocks that are out of favor … at the moment. Such people are called value investors, and there is a reason behind their contrarian choices in stocks. In theory, a stock that is out of favor with investors is probably trading lower than its true value, and when investors realize this, the price will rise.
Value investing typically applies to stocks, though it can in theory apply to other investments as well.
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