I am a contrarian investor but I wasn’t always one. I became a contrarian investor because every time I invested in what was hot I got my head chopped off. I would buy what was promoted in the media or hyped in the paper and I found myself buying the highs and then when a correction came I was the one that lost.
Investing is a zero sum game. That means that for every winner there is a loser. For every buyer there is a seller. What we don’t realize is that the media works hand in hand with these hedge funds. They are homies and they tend to promote what their friends want them to promote. So when they are looking to sell their shares they need someone to market and make those shares attractive so they can find a buyer. That buyer is you and if you buy at the top you lose.
The game is buy low sell high. the problem is that when the market is high everyone is being told to get in and when the market is low everyone is telling you to avoid avoid avoid. Recently people are promoting the idea that there is a crash coming since we are so high. The contrarian in me think that if everyone is telling you to avoid the market that means to get into the market. Just from my experience I have found that the media is wrong.
Assuming that they are wrong, if you aren’t investing right now you will lose as things continue to improve. HOWEVER, if they are right and you are invested you have to know that the market will ALWAYS correct itself. So you have to invest in both good times and bad. If there is a crash I encourage you to double down. If there is not a crash you need to be invested now. An example of this is the housing debacle in 2008. There were a ton of people who lost but they didn’t lose because of the crash, they lost because they SOLD. The people who won were buying up all the properties during this recession and they are cashing out now for more than double what they paid.
The point of this post is that you only lose when you don’t invest. If you are investing and the market falls, buy some more, if you are investing and the market continues to run up, good for you. Don’t fall prey to the naysayers. The same geniuses that are telling you a crash is coming were the ones telling you that real estate only goes up and to buy buy buy at the height of the market. These people don’t know what they are talking about, they are paid advertisers in the form of “unbiased media” and you have to learn to look at the data and make your own decisions.
Be a contrarian and invest like one to win. If you want to join our club I highly recommend you get on board now. We have 85 members and we are going to 1000. All things are possible.