Sunday, November 11, 2007

Ahh so far, so good the joys on contrarianism

In today's rush to be "different" it seems to me that people forget that there is a time fro change for that difference to be actual, and not merely complaining.

For example, the stock market has been said to be in crash mode for at least 2 yrs now, fine, it is over valued, well now it is readjusting it's values thanks to an inevitable bursting bubble.

For contrarian investors, this is not a time for "I told you so" it is a time to start stalking bargains, stocks that perform, pay dividends and show long term value.

For me, there is one more criteria, they must have DRIP DIP plans available, meaning that I can directly invest, and reinvest dividend income in the purchase of more shares automatically.

This also means decisions must be made about sellling Gold or Silver to buy those shares, both have had huge increases in valuation , and like the stock market, a correction is inevitable, those are the decisions that Contrarians make, and let others chase the money by going with the herd.