Popular Terms
Investor or speculator who acts contrary to conventional wisdom: he or she is bearish when others are bullish, and vice versa. Contrarian philosophy is based on the observation that most people who believe the market will go up have already bought all they could and have no purchasing power left; hence the market has to go down when they start to sell. Conversely, those who believe market will go down have already liquidated their holdings and have a lot of purchasing power, hence the market has to go up when they start to buy.

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