Contrarians Assume: Understanding the Philosophy of Going Against the Grain

Contrarians Assume

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Contrarians assume that:

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A. B. C. D.

Explanation

According to the contrarians, most market participants make wrong investment decisions as the market approaches the peak or trough in a cycle. Hence, their basic trading rule is to determine if the general investing populace is strongly bullish or bearish and then bet against that trend (hence the name, "contrarian").