| Investors tend to make ‘contrarian’ investing choices too early in the cycle. Basically, the price of an asset can be trending higher, lower or sideways. When an asset is declining in price, it remains in a downtrend until proven otherwise. The chance of a trend change is much smaller than the trend continuing.
In other words, being ‘contrarian’ is difficult, and the pitfall is that an investor may be too early with his contrarian call. Our experience shows that a good contrarian call is based on a set of indicators, including price and technicals, investor and media sentiment, and opportunity costs...............................................Full Article: Source
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