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Think Contrarian Archive

Following the investing herd is one of the most costly decisions you can make. As Humphrey B. Neill says, “When everybody thinks alike, everyone is likely wrong.” Hard evidence backs this up, too.

When the American Association of Individual Investors’ (AAII) sentiment reading falls – meaning investors are skeptical about the market’s direction – stocks tend to rally. In fact, when the reading drops to a certain level, stocks rally over a six-month period. And that’s been true 100% of the time since 1987.

For more information on how being a contrarian investor pays off, check out the articles below.

March 2014

Secret Ivy League Society Leaks Market’s Next Move

By - March 25, 2014

Yesterday, we embarked on a mission to debunk seven of the most prevalent Wall Street myths. Myths like the imminence of hyperinflation and the fragility of the residential real estate recovery, among others. We recruited some helpful graphics to do…

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Conspiracy Theorists Finally Get Their “Magic Bullet”

By - March 24, 2014

For the next two days, we’re combining two of our favorite past times… Myth busting Wall Street’s most widely held beliefs and using carefully selected graphics to cut through the clutter and noise. By doing so, we aspire to take…

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The Scariest Margin Call Since 1792

By - March 17, 2014

It’s St. Patrick’s Day, and apparently too many investors are feeling lucky. In the last week, a cacophony of warnings erupted from financial pundits over the latest margin debt figures. Why? Because the amounts of cash that investors are borrowing…

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My Boldest Call Ever

By - March 15, 2014

Last Saturday, I stuck my neck on the block by arguing for a BlackBerry (BBRY) turnaround. I know… it’s the ultimate contrarian call. But hear me out. I mentioned that four pillars hold the key to rebuilding BlackBerry. And I…

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China’s Premier Falls on His Sword

By - March 14, 2014

Words mean little on Fridays in the Wall Street Daily Nation. Instead, we let pretty pictures do most of the talking for us. Each week, I select a handful of graphics to put important economic and investing news into perspective…

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CEO Writes His Own Obituary, Then Drops Dead?

By - March 10, 2014

Don’t say I didn’t warn you… Nearly a month ago, I pointed out the terrible performance of retail stocks and warned against investing in the sector. Armed with a fresh set of data, it’s time to reiterate my stance. Especially…

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