Investing in Doubled Stocks Leads to 28% Loss, Study Finds.
Many investors are disappointed by stocks that have recently doubled in price. Only investors who focus on recent stock price history are disappointed, while those who look at fundamentals are not. Factors like past stock performance and earnings can predict future stock returns. Investing in stocks with a high chance of doubling can lead to higher returns. A portfolio of recently doubled stocks shows a strong reversal effect.