Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

It Takes a Different Breed to Be Contrarian

Stock-Markets / Investing 2015 Apr 15, 2015 - 08:01 PM GMT

By: Casey_Research

Stock-Markets

By Justin Spittler

The most memorable scene in the film adaptation of Glengarry Glen Ross is when Alec Baldwin’s character—a hotshot real estate broker from the prestigious Mitch and Murray agency—tells a group of struggling real estate agents that it takes “brass balls to sell real estate.” There’s probably some truth to that, but it takes bigger cojones to buy what everyone else hates.


Jim Rodgers, Warren Buffett, and our own Doug Casey all made fortunes by going against the crowd. George Soros once made $1 billion in a single day by doing something everyone else thought was crazy: shorting the British pound when the Bank of England was aggressively propping up its currency.

Of course, being a contrarian is about much more than buying stocks with low price-to-earnings ratios or when blood is filling the streets. Impeccable timing is what really separates contrarians from the average investor.

A contrarian would never make a dime if the market never saw things from his perspective. To generate alpha, a contrarian must identify trends first—but not too early, which is the same thing as being wrong in the investment world.

That’s easier said than done. In fact, it takes a different breed to see opportunity when everyone else sees a crisis.

Sure, the life of a contrarian can be lonely, but the financial and intellectual rewards make it worthwhile. The brave voices who warned of a real estate bubble in 2006 were the laughing stock of the investment community—that is, until the market’s excesses caught up with it.

Unfortunately, there’s never been a tougher time to be a contrarian. Value, by traditional measures at least, is practically nonexistent. Central bank meddling has pushed stock and bond valuations beyond reason. And yet, the market should continue to defy odds as long as central bankers support it.

Modern–day contrarians must do more than buy unloved assets to be successful. They must understand crowd mentality; that the herd is irrational; that people overreact to bad news.

A contrarian must also keep his or her own animal spirits in check. Finally, one should develop one’s own opinions but accept that fighting the trend is often an unwinnable battle. The market has made fools of many respected investors who tried to go against the trend.

This is what Casey Research is all about. Whether it’s positioning ourselves ahead of the next money printing scheme or preparing for inflation while everyone else is obsessed with deflation, we aren’t trying to win popularity contests. We would rather make a ton of money. And our modus operandi is to look for the next game-changing trend while everyone else digests yesterday’s news.

And right now, there's no greater opportunity than the precious metals sector. Shares of the most promising companies are selling for less than book. And we've found the best way to cash in -- it's a deeply undervalued mining company, with a deposit 8x richer than the average mine, that's about to start pouring gold for the very first time. It's a bargain today but won't stay cheap for long. Click here for all the details.

Casey Research Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in