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.
My Three Proven Keys to Contrarian Investing
By Louis Basenese - May 13th, 2013
We’ve boiled down contrarian investing to three simple, yet powerful, keys. More »
Friday Charts: A New Baby Boom, Inflation and the Scariest Jobs Chart Ever
By Louis Basenese - May 10th, 2013
We may have just dug up the most inappropriate economic indicator ever… More »
Sell in May? Not According to These Three Charts
By Louis Basenese - May 1st, 2013
While the last three years make it seem like a “sell in May” strategy would be a no-brainer, the long-term data paints an entirely different picture. More »
The Biggest Lie About the Real Estate Recovery
By Louis Basenese - Apr 25th, 2013
A fifth grader with remedial math skills can figure this out. Can you? More »
Debunking the Food Inflation Myth in Two Charts
By Louis Basenese - Apr 22nd, 2013
The latest data on inflation and global food prices directly impacts how you feed your family. More »
Friday Charts: Should We Be on High Alert for Another Banking Collapse?
By Louis Basenese - Apr 19th, 2013
It’s time to dispel your bogus fears about a major financial collapse with a single image. More »
When This Indicator Hits 19, Stocks Always Rally… And it Just Did Again
By Louis Basenese - Apr 15th, 2013
We’ve dug up some hardcore evidence that proves you should ignore crowd mentality at all costs. More »
Friday Charts: Panic in Japan and Why Businesses Hate Government, Too
By Louis Basenese - Apr 12th, 2013
In this week’s Friday Charts edition, we’re revealing the single most encouraging data point about the state of the market. More »
Move Over Warren Buffett, Here’s the New Golden Rule for Investing
By Louis Basenese - Apr 9th, 2013
Many investors think it’s simply a matter of time before a pullback or correction materializes. Enough already! More »
Don’t Fall into These 10 Buyback Traps
By Louis Basenese - Apr 3rd, 2013
The financial press has these companies pegged as compelling “Buys” right now. Here’s why you should avoid them. More »
