Business and Personal Finance Dictionary

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• CONTRARIAN
  
  An investor who marches to a different drummer is sometimes described as a contrarian. In other words, if most investors are buying stocks, a contrarian is concentrating on building a bond portfolio or putting more money into cash investments. This approach is based, in part, on the idea that if everybody expects something to happen, it probably won't. In addition, the contrarian believes that if other investors are fully committed to a certain type of investment, they're not likely to have cash available if a better one comes along. But the contrarian would. Contrarian mutual funds use this approach as their investment strategy, concentrating on building a portfolio of out-of-favor (and therefore often undervalued) investments.
  
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