this is from wiki investor
contrarians have a permanent bear market view, while the majority of investors bet on the market going up. However, a contrarian does not necessarily have a negative view of the overall stock market, nor does he have to believe that it is always overvalued, or that the conventional wisdom is always wrong. Rather, a contrarian seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite, to the point where that investment has become mispriced. While more "buy" candidates are likely to be identified during market declines (and vice versa), these opportunities can occur during periods when the overall market is generally rising or falling.
IMHO Equifax is not what Baron Rothschild had in mind it is not mispriced this is one that you need to let the market sort out.
If any company is going through a major crisis that drives down the stock, yet there's very little chance that the company will fold, then I consider that stock to be "on sale".
It's not a new or innovative strategy, but it usually wins out if you're willing to let the stock sit while it recovers.
@Ishmael. That may be true but before you purchase there needs to be a plan to move forward equifax has not yet offered anything that will let them move past this problem and it is a problem.
Too many opportunities out there to focus on. Markets are fairly priced so dollar cost averaging into the broad market takes away any need for homework.
I got tired of watching stocks, but it's still fun to play with individual picks from time to time. TCCO and CERN are good tech plays, although one of them gave me 50% growth this year alone.
I was considering a contrarian purchase of Peabody Coal a few years ago. Man, am I glad I never pulled the trigger. Not everything that’s goes down must bounce back.
15 comments
this is from wiki investor
contrarians have a permanent bear market view, while the majority of investors bet on the market going up. However, a contrarian does not necessarily have a negative view of the overall stock market, nor does he have to believe that it is always overvalued, or that the conventional wisdom is always wrong. Rather, a contrarian seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite, to the point where that investment has become mispriced. While more "buy" candidates are likely to be identified during market declines (and vice versa), these opportunities can occur during periods when the overall market is generally rising or falling.
IMHO Equifax is not what Baron Rothschild had in mind it is not mispriced this is one that you need to let the market sort out.
It's not a new or innovative strategy, but it usually wins out if you're willing to let the stock sit while it recovers.
I got tired of watching stocks, but it's still fun to play with individual picks from time to time. TCCO and CERN are good tech plays, although one of them gave me 50% growth this year alone.
"You can't time the market, but, sometimes I do pick individual stocks."
My main account I call my retirem