If any country should celebrate a contrarian streak, it's America.
As we observe Independence Day -- is anybody actually reading today? -- this holiday week's Financial Education column will highlight our running series on contrarian investing, the ultimate expression of market independence.
Contrarian investing -- buying the stuff that everybody hates, or betting against the stuff that everybody loves -- is one of the best ways to aim for performance-enhancing returns. There are a million ways to go against the herd, and today's package of stories highlights some of the best bets these days:
Short Selling: Do
(AMZN - Get Report),
(EBAY - Get Report) and
(YHOO - Get Report) look frothy to you? If you know the risks, short-selling can be a profitable venture. This
offers a primer on how to sell a stock short. (Back in the old days in France, Napoleon banned short-selling as treasonous behavior -- that would never happen in America!)
Dogs of the Dow:
Investors looking for a contrarian investment strategy tailor-made to benefit from the recent dividend tax cut, the Dow 10, or Dogs of the Dow, is a good place to start. Check out
this recent column
for details on how an oldie-but-goodie strategy makes darlings out of dogs like
(MO - Get Report)
You heard me. A growing number of savvy investors are suggesting it's finally time to take a look at the country that has been in a 13-year death spiral. This
offers a few mutual funds that are worthy candidates for the investor willing to take the plunge.
The precious metal has been on a bear-market tear during the past three years -- after a two-decade funk -- and some investors think it may still have more upside. Investors interested in the metal's prospects should check out this
Lots of investors lay claim to being contrarians these days. To get a sense of what contrarian investing truly means these days, we got the straight story from three genuine articles: Marc Faber, Tom McManus and David Dreman. While they contradicted each other a bit -- natch -- there were some common themes.
to see what these contrarians like and dislike.