Contrarian bet on retail, page-3

Lucky picks!

Contrarian investing works because price always overshoots value. As long as you can handle a sustained draw-down, avoid permanently distressed companies and pick accounting manipulation you will do aright. However, buying at technical lows will not work as well as buying at fundamental lows.

Here is a back test for a simple contrarian strategy compared against the S&P500 (adjusted for survivorship bias).


True contrarian stocks are hard to find (not just falling knifes). In the last 12 months I have been more active in international markets because ASX valuations are too high.