HOW to Play it

buying stocks in industries written off as doomed is a time-tested contrarian tactic employed by superstar investors like Warren buffett. Who wanted to own oil stocks when opec suggested it would never cut production? Then opec caved and energy stocks climbed 24% in 2016. They’re still cheap. Larger banks were also put on the chopping block in 2016. investors believed low interest rates would last forever and regulation was so intense it was like financial water torture. but since Trump’s election, bank stocks are back with a vengeance and still have room to run. Two promising stocks—selling at reasonable valuations—are occidental Petroleum and Wells Fargo. David Dreman is chairman and founder of Dreman Value Management.