Echoes of 1999: The Tech Bubble and the “Asian Flu”
In nearly four decades of contrarian investing, I’ve learned that the markets reward neither comfort seekers nor performance chasers for long. Instead, experience shows that the correct long-term strategy is to cautiously pivot into out-of-favor markets, averaging in over time, because it is not possible to know when the turn will come. Executing these uncomfortable trades, such as tilting deeper into value or into diversifiers at the times when they are most shunned, goes against human nature. We all want more of what has given us comfort and profit, and less of what has given us pain and loss. But, the capital markets do not reward comfort. Buying what’s unloved is, simply put, the most profitable way to invest, but it demands patience and staying power through the inevitable bouts of adversity.
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