Contra bets

When it comes to universal nightmares, a market crash is pretty much at the top of the list. It's a turmoil that sends most investors scrambling for safety as they watch their portfolios sink before their eyes. But not everyone is running for cover. In fact, there's a select group who practically celebrates the mayhem. Welcome to the world of contrarian investors. For them, a market in freefall is the perfect opportunity to scoop up stocks others are fleeing from. But it's not about buying every beaten-down stock and praying for a miracle. It's about distinguishing temporary problems from permanent damage. Contrarians eye stocks that are unfairly trashed or discarded by the market.

This article was originally published on January 01, 2025.