Contrarian investors: you go your way, I'll go mine Dollars & Sense Guest Contributor 21 | Thursday, August 25, 2016 | OAKVILLE BEAVER | www.insideHALTON.com SA SALES LES PERIOD | AUG AUG 25 - 31, 31, 2016 2016 ENDLESS DAYS OF SUMMER Peter Watson SALE 6" Instant S ophisticated investors are curious to learn what individual retail investors are thinking. That initially might sound like a compliment. It is not. Contrarian investing, as a strategy, is characterized by buying and selling in contrast to what is popular and trending. The reason why the opinion of retail investors is important to the more knowledgeable investors, such as institutional investors and pension funds, is that they can use it as a contrarian indicator. Popular views avoided To the contrarian investor, popular views are to be avoided. Many past articles have provided evidence of investors having less than admirable investment returns. It seems there is something about humans that makes it hard to be successful at investing. Because individual investors' decisions tend to be poor, more sophisticated investors don't follow their lead. If individuals think that a particular stock or stock market will perform well in the future, they will buy. The more sophisticated professional investor, those with more experience and courage, will use that information as an indication they should do the exact opposite. Everybody who invests tries to make a pro t. This is similar for both retail investors and the larger, more sophisticated, investors. Many people reading this article will have purchased stocks in the past. The decision to purchase the stock was made because you thought the price would increase. The fact that retail investors tend to be so consistently bad at investing makes that information useful for sophisticated investors. Ouch! It is one thing to be wrong, but it is another thing when people, realizing you were wrong, pro t because of your mistake. Short-selling as a strategy Short-selling is another aggressive strategy, although far less common. If you think a stock value will decline, you sell the stock you do not yet own but have, in effect, borrowed from a broker. For example: if a company's shares trade at $10 per share, you sell the share and at some future point buy the share back in order to complete the transaction. Your hope is to have the shares decline in value so you can buy the shares for less then you initially sold them for. Some stock exchanges publish data on who is see Learn on p.30 3 18 $ for S SAVE AVE 14" MUM FOUNTAIN PLANTER ANNUALS Reg. $6.99 $5 Sunflowers Rudbeckia SUMMER FLARE SHRUBS Mums Ornamental Peppers 1999 Reg. $24.99 3 $36 for Reg. $19.99 Choose from Dwarf Burning Bush, Purple Leaf Sandcherry, Variegated Dogwood, Viburnum, Euonymus. Mix & Match TERRA Essentials Great selection of easy to grow and easy to care for Perennials & Nursery items at everyday value prices. 1 gal. Stella D'Oro Daylily ................................ $8.99 1 gal. Hidcote/Munstead Lavender...... $8.99 1 gal. Sedum Autumn Joy ............................. $8.99 1gal.PalacePurple Heuchera...........................$8.99 2 gal. Hydrangea Annabelle.....................$12.99 3 gal. Dwarf Alberta Spruce ......................$19.99 1 gal. Boxwood .......................................................... $9.99 All SEDUM From $12.99 EVERYDAY LOW PRICE 12" Euro PLANTER SAVE $5 39 99 30% OFF Bordeaux 4 PC SECTIONAL Reg. $44.99 3 gal. Boxwood ......................................................$24.99 $ 15" Endless Summer PLANTER SAVE $10 Reg. $4,500.00 3 3,500 ,50000 SAVE 5 gal. 120cm Emerald CEDARS 2 $60 for Reg. $59.99 39 99 Reg. $49.99 $1 ,000 50% OFF OPEN 7 DAYS A WEEK Monday - Saturday 9 am - 6 pm | Sunday 9 am - 5 pm HAMILTON 340 Hwy 20 R.R. 1 East of Upper Centennial (905) 692-6900 | BURLINGTON Hwy 5 East of Brant St. (905) 332-3222 MILTON Britannia Rd. West of Trafalgar (905) 876-4000 | WATERDOWN Hwy 6 & 5th Concession East (905) 689-1999 VAUGHAN Keele St. North of Kirby Side Rd. (905) 832-6955 All items while quantities last, subject to availability. Category offers exclude "TERRA Essentials". www.facebook.com/YourTERRA/ www.terragreenhouses.com