Full Title:  The Triumph of Contrarian Investing:  Crowds, Manias & Beating the Market by Going Against the Grain

Author: Ned Davis

Publisher/Date:  McGraw-Hill  (2003)

List Cost/Pages:  $22 Hardcover / 188 pages

Cover Notes:
In The Triumph of Contrarian Investing, Ned Davis–one of today’s most respected and influential market analysts–delivers both qualitative and quantitative proof that, when emotion is at its highest, the investing herd is almost certain to be running in the wrong direction. He then provides indicators to help you determine when crowd psychology is at an extreme, and outlines a disciplined approach for remaining fully and profitably invested in strong market environments while foreseeing and avoiding major market disasters.

This first-of-its-kind contrarian investor’s rulebook will show you how to:

  • Understand the powerful forces of crowd psychology and its historic and predictable impact on financial markets
  • Quantify and analyze crowd sentiment to identify when that sentiment has gone too far–and is poised to reverse
  • Ignore popular perceptions and your own emotions to sell during periods of extreme optimism and buy during extreme pessimism

Following the innovative and nontraditional approach that has always been a hallmark of Ned Davis Research, The Triumph of Contrarian Investing combines both qualitative and quantitative indicators into a successful contrarian strategy. Hundreds of charts and graphs reveal how and, more importantly, when contrarian investing principles have proven in past markets to be most successful. Only here will you learn:

  • At what levels the market’s price/earnings ratio, long considered a measure of valuation, can actually be an uncanny yardstick of investor expectations
  • At what precise point the percentage of household financial assets held in stocks has reliably signaled market peaks and troughs
  • How the inflow of money into various financial instruments can be confidently used to indicate imminent market turnarounds

In terms of human nature, nothing is more difficult than going against the crowd. In terms of investment performance, on the other hand, nothing is more profitable. Let Ned Davis’s The Triumph of Contrarian Investing provide you with analysis and indicators proven to spotlight those points at which investor optimism or pessimism is at its strongest, then show you how to go against the grain–and profit–in virtually every instance.