QOTD: The Contrarian Contrarianist Approach

My sentiments exactly:

The contrarian wisdom being bandied about lately is that so many people are positioning themselves for a correction, that the contrarian view is actually to remain bullish and expect a continued rally in stocks. It’s just that MarketBeat seems to be hearing this from one too many people lately, as if everyone’s caught on to this “contrarian” viewpoint. Of course, the very mention in this blog probably predicates a contrarian contrarianist approach – that is, if too many people are saying it’s contrarian to be bullish and therefore, it’s time to be bearish, mentioning this in a markets blog reverses that double-negative and puts the market back in the bullish scenario again. Think about that.

Comments

  1. Posted by Curt Smith on May 15, 2007 at 10:15 pm

    Mike,

    I’ve read a HK news article about China will soon float the yuan. The Big Picture suggested that the Chinese will have to buy the dollar massively to keep the yuan from floating too high too fast.

    What’s your thoughts on this, the dollar being bought? Yuan float/

    What would floating the yuan do to the EEM or FXI? Wouldn’t the share prices go up proportional to the yuan rise or more so since the Chinese banks have started buying the EEM/FXI?

    tnx curt

  2. Posted by DavidDT on May 16, 2007 at 12:09 am

    Mike, can you say it one more time, pretty please? :o

  3. Posted by Leonardo on May 16, 2007 at 4:08 am

    A true contrarian is not one who necessarily takes the opposite view but rather, a different one. For example, if the pundits believe that equity markets will be up 10% ca. this year, a real contrarian may say say that they will be up more than 20% rather than markets crashing this year.