Tag Archives: contrarian

Update on contrarian indicators – sit tight for now

Today I wanted to update my top 3 contrarian indicators. The market selloff continues and looking at contrarian indicators can give an investor an edge in determining the right time to buy. I introduced these indicators in this post; money flows; investors sentiment, and margin debt. Lets see what they’re telling us. First up, money flows. Money continues to pour out of equity mutual funds. The latest data from ICI is below. The $30B outflow out of equity funds in the week ending Aug 10th was the worst since Q1 2009. On a monthly basis you can see the comparison … Continue reading

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My top three contrarian indicators

I am a contrarian investor by nature. When there is too much fanfare around an investment, be it a stock or whole asset class, I usually find myself wanting to run for the exits. The hair on the back of my neck literally stands on edge sometimes. Most value investors tend to be at least somewhat contrarian. You almost have to be to buy cheap asset classes which by definition are unloved. Besides applying my contrarian nature in looking for cheap dividend paying stocks I also monitor the overall market for signs of what asset classes and when it may … Continue reading

Posted in Economy, Portfolio, Stocks | Tagged , , , , , , | 8 Comments