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.
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 »
10 Startling Statistics About the S&P’s Record High (Part 2)
By Louis Basenese - Apr 2nd, 2013
Yesterday, I set out on a mission to share a handful of startling statistics concerning the S&P 500 Index’s run-up to a new, all-time high. Get ready for even more shocking data today… More »
10 Startling Statistics About the S&P’s Record High (Part 1)
By Louis Basenese - Apr 1st, 2013
After three weeks of waiting, the S&P 500 Index finally joined the Dow in the record books. Told you so! More »
To Think Contrarian Right Now, Be a Bull
By Matthew Weinschenk - Mar 29th, 2013
You may feel like a contrarian calling for a pullback. But you’re just part of the crowd. More »
Friday Charts: Three Trends You Won’t Believe Are Gaining Momentum
By Louis Basenese - Mar 29th, 2013
Today, I’m dishing on the (still) unbelievable rebound in residential real estate, pesky rumors about the dollar’s demise and a resurgent U.S. stock market. More »
The Number One Reason Dividend Stocks Aren’t Doomed
By Louis Basenese - Mar 27th, 2013
I was recently asked if dividend stocks were the next investment craze destined to fade. My response? Not a chance! More »
The Two Most Reliable Recession Indicators
By Louis Basenese - Mar 26th, 2013
Still worried about another recession? Check out these indicators that show there’s almost zero chance of economic contraction on the horizon. More »
Myth Busting Those Pesky Recession Fears in Four Simple Charts
By Louis Basenese - Mar 25th, 2013
Fear is a nasty emotion to overcome for investors. Luckily, recent evidence suggests you don’t have to be afraid of another recession in 2013. More »
Friday Charts: March Madness, Stock Mania and the Truth About Gas Prices
By Louis Basenese - Mar 22nd, 2013
Like every Friday, we’re abandoning the longwinded analysis and letting some carefully selected graphics do the talking for us. More »
Friday Charts: The Best (and Worst) Investments of 2013
By Louis Basenese - Mar 8th, 2013
Earlier this week, the Dow closed at a new all-time record high. Is this the end of the bull market? More »
