Clipped From Poughkeepsie Journal

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 - Top stocks should be ignored? By Gannett Newt...
Top stocks should be ignored? By Gannett Newt Service TROY The stock market Is a running mob, says Professor James M. MacLachlan, and the wise man runs in the other direction. MacLachlan, associate professor of management at Rensselaer Polytechnic Polytechnic Institute, has studied the performance performance of 250 top stocks since 192S. He found that Investors would have done much better by buying unpopular unpopular stocks than by buying the market's market's darlings. Of the 250 stocks studied, the least, profitable fifth of that group in one year tended to make the most profit for their investors, counting both increase increase in price and dividends. In the following year. That happened, said MacLachlan, because the relatively profitable stocks tended to be overpriced by the market, while out - ot favor stocks tended to be undervalued "Psychologists know that crowds tend to overreact," he said. "Most investment is institutions,

Clipped from Poughkeepsie Journal22 Nov 1981, SunPage 17C

Poughkeepsie Journal (Poughkeepsie, New York)22 Nov 1981, SunPage 17C
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