Contrarian Investing: Contrarian Investing involves going against prevailing market sentiment by buying assets when they are out of favor or oversold and selling when they are overly popular. Contrarians believe that markets overreact to news, creating mispriced opportunities. This strategy requires strong conviction, deep research, and emotional discipline to act when others panic or exuberate. Famous contrarians like Warren Buffett follow the mantra: “Be fearful when others are greedy, and greedy when others are fearful.” It can yield high returns during market reversals but carries risks if a stock’s decline is justified. Best suited for experienced investors, it thrives on patience and independent thinking in volatile markets.
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