The Counter-Contrarian

Contrarians aren’t always right. Many times contrarians are dead wrong – consider shorting the market in 1998. Divergent thinking comes in handy only once fundamental analysis is strongly in play. A stock can be a good value, but if everyone is ranting about it, there may be something you don’t know.

As long as the thinking is rational go with the flow. Once the money goes irrational, its ok to bet against it.

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