The Secret to Achieving Great Results... be a Contrarian
contrarian |kənˈtre(ə)rēən; kän-|
noun; 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 company's stock when it is out of favor with the majority of investors
adjective; opposing or rejecting popular opinion; going against current practice :
When
investing whether in Property, Shares, Managed Funds or Index funds,
the small investor has no control over the direction on the market. It
is like being on a mighty river in a small boat; you will simply be
swept along with it.
As such it is important to go
against the trend and invest in times while there is a little
uncertainty if you wish to achieve great results. Take a look at the
below charts.
Would you be comfortable investing in this market.
How about this market?
When we put these two together you have the following
chart. My guess is in hind sight you would have picked the part circled
to buy in. The problem is that we do not invest in hind sight we invest
in real time. As such the truth is that most would not have bought in
until many years later.
The Message:
For the small investors we need to invest against the trend in order to make large profits. We need to take a little more risk as long as that risk is calculated.
“All progress is made by the unreasonable man.”
So if you are ready to make money give us a call so we can discuss your options.
Jason Fittler
Index Funds