Contrarians buy low and sell high so they wind up with winning investments. What are some out-of-favor plays now?
* Autos and airlines. The price of oil has risen from $20 a barrel in 2002 to about $75 today. Nothing goes in one direction forever, though. If the price of oil goes down, winners will include companies that use and depend on oil. It may be time now to invest in airlines and automobile companies, which will enjoy better profit margins if fuel costs fall.
* Cuba and Korea. Among foreign stocks, some of the markets that are doing the best today include former communist countries. Such countries were so backward that the introduction of free markets led to rapid development.
If Cuba abandons communism, a boom will be under way so you might want to invest in, say, hotel chains and cruise lines likely to do business there. Cuban real estate may offer opportunities as well.
In Korea, the North and South may be united some day. You might invest in selected South Korean stocks such as Korean Electric Power or choose a fund focused on Korea.
