Updated on March 12, 2023
‘Contrarian’ is used to describe a person or investing style in which the investor goes against the existing market trend. A Contrarian investor generally takes an opposing view of the market and buys what is not ‘popular’ or what others are selling and sells what others are buying.
Highlights of ‘Contrarian’
Highlights of Contrarian investing are:
a) Contrarian investing is a strategy which involves picking investments which are opposite to what the market is favouring at that time.
b) The contrarian investing strategy can be extended to individual stocks, themes, sectors, industries or entire markets.
c) A contrarian investor might enter the market when others are selling and buy large quantities when the overall market sentiment is negative.
d) As per the contrarian strategy, when the market or stock is below its intrinsic value, it presents a great opportunity to buy.