Comments on: Contrarian Investing http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/ A Personal Finance & Investing Resource Sat, 31 Jul 2010 04:39:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Todd http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-33 Todd Tue, 13 Jan 2009 18:50:37 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-33 @Jeff. That's one of the toughest things about investing, isn't it? Not listening when everyone else is panicking, when people you trust insist that this time is completely different. @Jeff. That’s one of the toughest things about investing, isn’t it? Not listening when everyone else is panicking, when people you trust insist that this time is completely different.

]]> By: Jeff http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-31 Jeff Tue, 13 Jan 2009 16:23:36 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-31 I have run an RIA firm in OP for the past 12 years, and we have seen all types of market fluctuations during that time. The greatest single indicator of predicting the markets next move, is what we call the "house wife” phone call sorry to any that might be offended. With 100 % accuracy, that phone call to sell, or buy for that matter, is the most accurate indication of the markets next move....but it will, of course go the other direction.... I have run an RIA firm in OP for the past 12 years, and we have seen all types of market fluctuations during that time. The greatest single indicator of predicting the markets next move, is what we call the “house wife” phone call sorry to any that might be offended. With 100 % accuracy, that phone call to sell, or buy for that matter, is the most accurate indication of the markets next move….but it will, of course go the other direction….

]]> By: Todd http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-23 Todd Sun, 11 Jan 2009 21:46:34 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-23 I think that's an apt comparison. It really frames the relationship of a buyer and a seller in a market transaction. Before buying, it's wise to ask yourself whether you have any information that the seller doesn't. Is the seller engaging in panic selling? Are you making purchases based on your own research? Are you speculating, chasing returns, or taking advice from talking heads on financial tv or radio? I would also say that trying to follow the lions is a momentum strategy, and momentum investing has been found to beat the returns of the overall market indices. However, I think momentum investing is something that should only be attempting by people with experience in the markets and finance. I think investors should commit to the strategy that makes the most sense to them. For me, I think an attempt at value investing is the most reliable approach. That being said, I have a very short track record choosing investments (about three years), and of course a lot of people know a lot more than I do. The most difficult part, regardless of your approach is knowing when to sell. Thanks for the contribution, Chris. I think that’s an apt comparison. It really frames the relationship of a buyer and a seller in a market transaction. Before buying, it’s wise to ask yourself whether you have any information that the seller doesn’t. Is the seller engaging in panic selling? Are you making purchases based on your own research? Are you speculating, chasing returns, or taking advice from talking heads on financial tv or radio?

I would also say that trying to follow the lions is a momentum strategy, and momentum investing has been found to beat the returns of the overall market indices. However, I think momentum investing is something that should only be attempting by people with experience in the markets and finance. I think investors should commit to the strategy that makes the most sense to them. For me, I think an attempt at value investing is the most reliable approach. That being said, I have a very short track record choosing investments (about three years), and of course a lot of people know a lot more than I do. The most difficult part, regardless of your approach is knowing when to sell.

Thanks for the contribution, Chris.

]]> By: Chris http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-22 Chris Sun, 11 Jan 2009 20:38:04 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-22 I wish I could recall the name of the radio talk show host who focused on investing so I could give credit where credit is due. Unfortunately, I'll have to take credit just for remembering the one phrase that made so much sense to me; "Lions buy when sheep sell; Sheep buy when lions sell." Whenever you're trying to decide whether or not to get into or out of a market, ask yourself what the lions are doing. I wish I could recall the name of the radio talk show host who focused on investing so I could give credit where credit is due. Unfortunately, I’ll have to take credit just for remembering the one phrase that made so much sense to me; “Lions buy when sheep sell; Sheep buy when lions sell.” Whenever you’re trying to decide whether or not to get into or out of a market, ask yourself what the lions are doing.

]]> By: Todd http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-10 Todd Wed, 07 Jan 2009 16:39:51 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-10 Thanks Rachel! Disclaimer - Rachel is my wife. Obviously she's a big fan of the blog. She was my first RSS subscriber. Thanks Rachel! Disclaimer – Rachel is my wife. Obviously she’s a big fan of the blog. She was my first RSS subscriber.

]]> By: Rachel http://www.personalfinanceplaybook.com/2009/01/contrarian-investing/comment-page-1/#comment-9 Rachel Wed, 07 Jan 2009 01:52:39 +0000 http://www.personalfinanceplaybook.com/?p=82#comment-9 I really liked this topic! Well said! I really liked this topic! Well said!

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