| Contrarian |
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An investment style that invests against market trends and does not follow
the prevailing consensus view. |
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A contrarian investor believes that the people who say the market
is going up do so only when they are fully invested and so have no 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. |
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