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.
By Louis Basenese - May 10th, 2013
We may have just dug up the most inappropriate economic indicator ever… More »
By Louis Basenese - Apr 19th, 2013
It’s time to dispel your bogus fears about a major financial collapse with a single image. More »
By Louis Basenese - Apr 15th, 2013
We’ve dug up some hardcore evidence that proves you should ignore crowd mentality at all costs. More »
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 »
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 »