PYSCHOLOGY IN EDUCATION

To be a contrarian investor does not mean acting foolishly and blindly. It is important to realize every person has unique investment policies. A thorough review of your risk tolerances, time horizons, and financial goals must be factored into your overall plan. Consult your financial advisor for appropriate direction.

Contrarian investing takes into consideration crisis driven market moves. A contrarian watches for overabundant emotions of greed and fear. Yet, acting on the irrational theories of others is not enough. Review current market conditions and the reasons behind such moves. Fundamental analysis of your positions is another key component to a well diversified portfolio. A contrarian must understand the market place in full.

The market has a curious way of introducing doubt into the minds of its investors when many seem content with the current direction. It is important to stay alert of changes and consider alternatives. Setting realistic goals, adapting to changes, and remaining focused will also aid you in developing an appropriate strategy.

And when the market menu reads just one meal, remember you may have other choices to fill your investment plate. Choices that may assist you in understanding market volatility and thus create a healthier outlook for the future. Contrarianism is not a rule to enforce at all times, however it is an approach that deserves some skeptical attention.

As an investor, you should be aware of all your options and make logical choices. Then, one day you may order “egg yellows for my portfolio, please.”

• There once lived a man fixated on contrarianism. If a clear sky blessed his town, he pointed to the distant storm clouds over the horizon. When the hometown team played its rival, he cheered diligently for the opponent. And as the stock market posted tremendous gains, he preached of a bear market seduction.
• “Don’t be lured by the recent gains, you will eventually face misfortune and lose everything!”
• The entire town knew him as the inconsiderate contrarian and avoided him at all costs. It was his place in the community to doubt and his viewpoints proved unpopular to everyone. He disrupted their jubilant ways of life and distracted them from their daily routines. But, it was his explosive display of antagonism one particular morning that encouraged the town people to rethink their complacency.

On the morning in question, he paid a visit to the neighborhood health diner. The diner advertised itself as an alternative to fast food restaurants. As he sat patiently to place his breakfast order, he became disgruntled with the consistency of orders requesting “egg whites.” It seemed every patron ordered the same. Egg whites … egg whites … egg whites.

• “Stop with the egg whites!” he told himself.
• The contrarian, however, was an educated man and he knew the benefits of egg whites. The yolk contained a lot of unhealthy fat and cholesterol, but not egg whites. The high protein from egg whites provided the benefits of muscle building and weight loss. Remember though, he was the town contrarian and it was his obligation to propose a second opinion. As he contemplated the best way to introduce salmonella to the diner’s most popular topic of conversation, he had a revelation.