Contrarian investors a bit better off in 2013

But jumping on the bandwagon didn't hurt investors either


EVIDENCE suggests that a contrarian investor tends to outperform a follower of consensus over time, but contrarian investing is often easier in theory than in practice.

Current numbers suggest that by at least one measure, contrarians may have come out better in 2013 than consensus followers.

The data is not surprising. Markets fundamentally reward those who correctly identify an erroneous collective, such that the correct contrarian nudges the price towards the right value.

The Dow Jones US...

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