3 Big Tailwinds That Could Make Contrarian Investors Rich in the Bear Market
Contrarian investing isn't for everyone. Most of the time, it's easier to just buy shares of an index fund rather than develop a unique investing thesis that takes advantage of going against the grain.
But if you know about a few of the market's tailwinds right now, you'll be in a much better position to make contrarian bets that have the possibility of large payoffs. Let's investigate three such tailwinds (as well as a couple of stocks that are likely to benefit from them) so that you'll have a few actionable ideas about how to make your own contrarian plays this year.
By definition, contrarian investors make bets that are against the market's consensus. When they make those bets, each dollar they invest gets them a certain amount of value, whether it's measured by the price-to-earnings (P/E) ratio or the price-to-sales (P/S) ratio or another metric. Thanks to the ongoing bear market, valuations are falling sharply, meaning that investors get more bang for their buck when they buy.
Source Fool.com
