Business Finance
Fundamentals of investments and contrarian investor, assignment help

Question Description

I’m trying to study for my Business course and I need some help to understand this question.

What does it mean to be a contrarian investor How would a contrarian investor use technical analysis?

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Final Answer

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According to Lawton (2013), contrarian is a speculation style that conflicts with buying so as to win business sector patterns resources that are performing inadequately and afterward offering when they perform well.

A contrarian financial specialist trusts that the general population who say the business sector is going up do as such just when they are completely contributed and have no further obtaining power. Right now, the business sector is at a crest. Then again, when individuals anticipate a downturn, they have effectively sold out, and soon thereafter the business sector can just go up (Lawton, 2013).

Lawton (2013) states that, contrarian investing is one of the (numerous) sectors in which technical analysis and central investigation meet. Best depicted as a segment of behavioral fund, contrarian contributing spotlights on the thought that the group isn't right - and more vital, that it's deliberately prudent to make a money related wager against tried and true way of thinking

Genuine contrarians really trust that the group is a good fit for the larger part of a business sector move.  It's not until group think gets valuations twisted that opposite wagers ought to be made (Lawton, 2013). That is a critical qualification to make.

Reference:

Lawton, P. (2013). The Psychology of Contrarian Investing. Research Affiliates (December).


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Megan20 (1012)
Duke University

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