There's an old expression, "Opportunities abound; you just have to know where to find them."
If only it was that simple when it comes to investing. Well, maybe there is a way to find them, but you'd have to be willing to take a deep dive into poorly performing international stock markets at seemingly terrible times.
I'm talking about a Dogs of the World. It exists. I discovered it during my hunt to build an international contrarian stock market strategy. Historical data backs up the approach.
The stock market in Brazil was up an eye-popping 66 percent in 2016, according to MSCI. Peru was up 59 percent, according to MSCI. Mind you, the news coming out of these economies was terrible. So what's the catch?
There's no catch. I simply isolated 50 single-country stock market indices since the beginning of 2011 and back-tested how I would have done if I invested in the bottom countries (either worst 10, five, three or one) in every year since then.