An investment style that goes against prevailing market trends by buying assets that are performing poorly and then selling when they perform well.

A contrarian investor believes that the people who say the market is going up do so only when they are fully invested and have no further 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.

Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

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  • contrarian — 1963, from CONTRARY (Cf. contrary) + IAN (Cf. ian). To be in opposition is not to be a nihilist. And there is no decent or charted way of making a living at it. It is something you are, and not something you do. [Christopher Hitchens, Letters to… …   Etymology dictionary

  • contrarian — [kän trer′ē ən] n. a person who typically acts or thinks in a way contrary to popular or accepted opinion; specif., an investor who seeks to make a profit by acting in opposition to majority opinion, prevailing wisdom, etc., as by buying a… …   English World dictionary

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  • contrarian — noun Date: 1657 a person who takes a contrary position or attitude; specifically an investor who buys shares of stock when most others are selling and sells when others are buying • contrarian adjective • contrarianism noun …   New Collegiate Dictionary

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