The Triumph of Contrarian Investing : Crowds, Manias, and Beating the Market by Going Against the Grain

Crowds, Manias, and Beating the Market By Going against the Grain. Bookmarks fixed. "All the evidence in this book ... shows the crowd is almost always wrong at extremes ..." --Ned Davis From Chapter 1It is one thing to say that the crowd is always wrong at extremes. It is quite another to provide convincing proof.In The Triumph of Contrarian Investing, Ned Davis--one of today's most respected and influential market analysts--delivers both qualitative and quantitative proof that, when emotion is at its highest, the investing herd is almost certain to be running in the wrong direction. He then provides indicators to help you determine when crowd psychology is at an extreme, and outlines a disciplined approach for remaining fully and profitably invested in strong market environments while foreseeing and avoiding major market disasters.This first-of-its-kind contrarian investor's rulebook will show you how to:* Understand the powerful forces of crowd psychology and its historic and predictable impact on financial markets * Quantify and analyze crowd sentiment to identify when that sentiment has gone too far--and is poised to reverse * Ignore popular perceptions and your own emotions to sell during periods of extreme optimism and buy during extreme pessimism Following the innovative and nontraditional approach that has always been a hallmark of Ned Davis Research, The Triumph of Contrarian Investing combines both qualitative and quantitative indicators into a successful contrarian strategy. Hundreds of charts and graphs reveal how and, more importantly, when contrarian investing principles have proven in past markets to be most successful. Only here will you learn:* At what levels the market's price/earnings ratio, long considered a measure of valuation, can actually be an uncanny yardstick of investor expectations * At what precise point the percentage of household financial assets held in stocks has reliably signaled market peaks and troughs * How the inflow of money into various financial instruments can be confidently used to indicate imminent market turnarounds In terms of human nature, nothing is more difficult than going against the crowd. In terms of investment performance, on the other hand, nothing is more profitable. Let Ned Davis's The Triumph of Contrarian Investing provide you with analysis and indicators proven to spotlight those points at which investor optimism or pessimism is at its strongest, then show you how to go against the grain--and profit--in virtually every instance.

Contrarian investing--what it is, how it works, and why millions of successful investors see it as the only logical choice

(Davis is) one of the most widely respected technical market analysts operating today.

--Louis Rukeyser

Contrarians say that, when it comes to investing, the crowd is wrong more often than it is right--and prove it with their 200-year history of success! The Triumph of Contrarian Investing is a fascinating, in depth examination of the impact of crowd psychology on markets, how the crowd is often predictably incorrect, and how investors can use long-proven contrarian investing strategies to uncover tremendous buying and selling opportunities.

Ned Davis, one of today's biggest names in investing, reveals:

• How to ignore the temptation to join the crowd and uncover tremendous opportunities
• Consistent signs that a stock's price has been driven too high or too low
• Strategies for protecting contrarian portfolios when--as sometimes happens--the crowd is right

Ned Davis is one of today's most authoritative and respected voices in investing. He founded Ned Davis Research in 1980, and the company's focus on risk management, staying with the primary trend, and avoiding major disasters has made it among the world's largest and most influential financial research companies with more than 5,000 institutional clients.

Annotation Contrarian investing--what it is, how it works, and why millions of successful investors see it as the only logical choice "(Davis is) one of the most widely respected technical market analysts operating today."--Louis Rukeyser Contrarians say that, when it comes to investing, the crowd is wrong more often than it is right--and prove it with their 200-year history of success! The Triumph of Contrarian Investing is a fascinating, in depth examination of the impact of crowd psychology on markets, how the crowd is often predictably incorrect, and how investors can use long-proven contrarian investing strategies to uncover tremendous buying and selling opportunities. Ned Davis, one of today's biggest names in investing, reveals: How to ignore the temptation to "join the crowd" and uncover tremendous opportunities Consistent signs that a stock's price has been driven too high or too low Strategies for protecting contrarian portfolios when--as sometimes happens--the crowd is right Contrarian investing--what it is, how it works, and why millions of successful investors see it as the only logical choice "(Davis is) one of the most widely respected technical market analysts operating today." --Louis Rukeyser Contrarians say that, when it comes to investing, the crowd is wrong more often than it is right--and prove it with their 200-year history of success! The Triumph of Contrarian Investing is a fascinating, in depth examination of the impact of crowd psychology on markets, how the crowd is often predictably incorrect, and how investors can use long-proven contrarian investing strategies to uncover tremendous buying and selling opportunities. Ned Davis, one of today's biggest names in investing, reveals: How to ignore the temptation to "join the crowd" and uncover tremendous opportunities Consistent signs that a stock's price has been driven too high or too low Strategies for protecting contrarian portfolios when--as sometimes happens--the crowd is right The Triumph of Contrarian Investing - Front Cover Title Page Printer's Imprint Thanks & Dedication Disclaimer Contents Foreword Acknowledgments 1. Introduction 2. Scientific Studies on Crowd Psychology 3. Brief History of Manias and Panics 4. Headlines and Cover Stories 5. Indicators of Crowd Psychology 6. Postscript Addendum References Index About the Author Delivers qualitative and quantitative proof that, when emotion is at its highest, the investing herd is almost certain to be running in the wrong direction. The author then provides indicators to help you determine when crowd psychology is at an extreme, and outlines an approach for remaining profitably invested in strong market environments. "The Triumph of Contrarian Investing provides you with analysis and indicators proven to spotlight those points at which investor optimism or pessimism is at its strongest, then show you how to go against the grain - and profit - in virtually every instance."--BOOK JACKET