contrarian

Share on Facebook Share on Twitter Email
Top
(kən-trâr'ē-ən) pronunciation
n.
One who takes a contrary view or action, especially an investor who makes decisions that contradict prevailing wisdom, as in buying securities that are unpopular at the time.

contrarian contrarian adj.

investor who does the opposite of what most investors are doing at any particular time. According to contrarian opinion, if everyone is certain that something is about to happen, it won’t. This is because most people who say the market is going up are fully invested and have no additional purchasing power, which means the market is at its peak. When people predict decline they have already sold out, so the market can only go up. Some mutual funds follow a contrarian investment strategy, and some investment advisers suggest only out-of-favor securities, whose price/earnings ratio is lower than the rest of the market or industry.

Previous:Contractual Plan, Contract Market
Next:Contributed Capital, Control Stock

Post a question - any question - to the WikiAnswers community:

Copyrights:

Mentioned in

Elephants (finance term)
Zither-Perlen (Album by Zither-Perlen)