Sticking to a contrarian strategy may be difficult during turbulent times from "summary" of Contrarian Investment Strategies in the Next Generation by David Dreman
During turbulent times, when the market is in disarray and emotions are running high, sticking to a contrarian strategy can be incredibly challenging. The very nature of a contrarian approach means going against the crowd, which requires a strong conviction and discipline to stay the course. This is easier said than done when everyone else is panicking and selling off their investments. The temptation to follow the herd is strong during turbulent times. Fear and uncertainty can cloud judgment, leading investors to abandon their contrarian principles in favor of the perceived safety of popular trends. However, it is precisely during these times of turmoil that a contrarian strategy can be most effective. By buying when others are selling and selling when others are buying, contrarian investors can capitalize on market inefficiencies and profit from the eventual rebound. Psychological factors play a significant role in the difficulty of sticking to a contrarian strategy ...
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