If you take a contrarian view and speculate against the more traditional and conservative investing method, you have a chance to turn the situation into an opportunity instead of a threat.
My advice is not to go against the mainstream opinion per se -- it is more to start to think outside the box and come up with an alternative strategy that is not commonly accepted by the public. If you base your ideas on real values and hard assets, you could use a combination of fundamental data and technical analysis and come up with a solid game plan.
Nota Bene: I have to use the caveat emptor doctrine in order to protect myself. I am not a professional trader and you have to take responsibility for your own actions on the market.
Before I give some examples of contrarian thinking, it is important to understand the philosophical meaning of a free market place with buying and selling of stocks, options, commodities, etc. I am sad to read that the former supporter of laissez-faire capitalism and a gold standard, Alan Greenspan, is now "in a state of shocked disbelief" regarding his former hands-off philosophy.
For a great example on how to defend the financial market, read In Defense of Speculators and Short-Sellers by Amit Ghate. Here is an excerpt from the article:
About the Author: Martin Lindeskog is a "trader in matter & spirit" and a small business entrepreneur in Gothenburg, Sweden. He is a board member of the Swedish National Association of Purchasing and Logistics (Silf, Western Region). Martin also writes a long-standing blog called Ego and will soon start a new series of interviews for his podcasting show on the Solid Vox network.
Martin is part of the Small Business Trends Expert Network.
