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Contrarian investing |
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Contrarian investingIgnoring market trends by buying securities that the investor considers undervalued and out of favor with other investors.Contrarian investing Similar MatchesContrarianContrarianSomeone who thinks money is to be made in the market by doing exactly the opposite of what the majority are doing. So if the market in general is bullish, the contrarian will be unloading stock. When the market is at its most depressed, the contrarian will gleefully be picking up stock at rock bottom prices. ContrarianContrarianAn investment style that leads one to buy assets that have performed poorly and sell assets that have performed well. There are two possible reasons this strategy might work. The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction. Investors might have overreacted to bad news sending the asset price lower than it should be. |
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