The Contrarian Approach to Making Money
Category: Business and Finance
By Stock Guru
Many investors hope to make money investing in the stock markets and they tend to follow the herds when it comes to investing their money. This is very risky as analysis of each investment in the stock market must be done before entry so as to reduce the risk of losing money. This is definitely missing as investors piled into the hot stocks hoping that the party will never end.
In order to profit greatly from investment in the stock markets, one must learn to be contrarian in nature. Being a contrarian does not mean going against the crowd in all instances but investing differently from the herds with well-researched facts. Investing differently from the rest requires great courage and determination on the part of the contrarian investor. It is difficult but will be rewarding for those who dare to take the path less travelled.
As we entered 2007, investors are looking for new investing ideas. Many are putting their money into countries and sectors that have done well in the past. In fact, it is getting more heated in several areas of investing but some places still offer great value to investors. One country which is feared by investors may be the next gem awaiting discovery. A few bombs went off on New Year Eve 2007 in this country and investors will be fleeing again. This country is Thailand, a country greatly misunderstood by investors but offers great value to those who dare to be different.
After the recent fiscal changes by the Thai’s authorities, the stock market plunged more than 15% in a day. Many investors fled and dumped stocks indiscriminately without analyzing the fundamentals of the companies they are investing in. Are these companies making less money now due to the fiscal changes? The answer is no. In fact , Thailand is more cautious now due to the Asian Crisis back in 1997. Most Thai companies are decently run and they are profitable enterprises. And they are cheap now due to the senseless dumping by investors.
Another factor many people failed to consider is that the Thai people love their king and if history is a good gauge, Thais will never fail their king. Thailand is now the cheapest country to invest in going into 2007 among the Asian countries. I think it is time to look at Thailand now and one of the best way to invest in this country will be through unit trusts if you are worried about individual company’s risk. I recommend two unit trusts namely Lion Capital Thailand and Aberdeen Thailand. Of course, do your homework before you invest. I believe that Thailand will survive the trials to become stronger and I intend to benefit from it. Place your bets if you love the Thai people and the Thai King too. |