While in the late 1990s it was most hip to be a "day trader," the vogue for investors these days is to style themselves as "contrarians." You know, the market's rocketing higher, and the contrarians are tut-tutting that everything is just so overvalued.
"I'm a contrarian," they say in that disdainful tone that old-school Dave Matthews fans reserve for the band's newer music. "I saw them play at the Pika House at UVa before anyone had ever heard of them," they sniff. "I'm a contrarian."
It's easy to feel contrarian when you're watching companies with marginal businesses and razor-thin floats rocket higher each day. You believe fully that this craziness is going to stop. You have your money in the new Gold ETF
You are certainly negative. You may well be correct and prudent. But a contrarian, at this moment in time, you are not. There are too many people standing right there beside you. There's a reason that one of the most hated trades in the world at the moment is going long the U.S. dollar, and it's not because everyone but you is all hap-hap-happy.
You want to be contrarian? Great -- that particular designation awaits you, but it isn't in the form of just being negative. Contrarian players at this moment are trying to figure out if Ford
Lots of people are negative on the prospects of the economy and the markets. There is a reason why Morgan Stanley's
So don't worry, you're not alone. But if you want to be alone, being negative about the state of things isn't doing the trick.
See also:
- Bill Mann's Dare to Be Wrong
- Brian Graney's Contrarian Investing
Bill Mann owns none of the companies mentioned in this story.