Another Contrarian Indicator - IMD Investment Basics March 2009

I found this on the CNBC website today.

Can't Beat the Bear Market? Here's How You Can Join In

 

The article is about exchange traded funds which are inversely correlated to the stock market [in other words, if the stock market goes down, the value of the ETF goes up.] If you're wondering why I believe this to be a contrarian indicator, consider the following.
For you to buy an inverse ETF, somebody has to sell it. Who do you think that might be? Could it be the person who has seen the 40 to 80% gain over the last year who now feels that ride may be over? I wonder ...

[this in no way blames CNBC, and I am NOT suggesting there is any collusion between CNBC or anybody else. It's simply the nature of the game - by the time a profitable strategy hits mainstream media, it has usually almost fully run its course].

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