Contrarian
An investment style that goes against prevailing market trends by buying assets that are performing poorly and then selling when they perform well. Investopedia Says:
A contrarian investor believes that the people who say the market is going up do so only when they are fully invested and have no further purchasing power. At this point, the market is at a peak. On the other hand, when people predict a downturn, they have already sold out, at which point the market can only go up.
Contrarian investing also emphasizes out-of-favor securities with low P/E ratios. Related Terms:
Buck The Trend
Disparity Index
Price-Earnings Ratio - P/E Ratio
Style
Value Stock |