This evening I read an article in Bloomberg news by Whitney Kisling. The advice given to all the contrarian investors are to buy computer shares since they have fallen almost 7% since a peak in September and they have never been as cheap as they are today for the last seven years so... since 2006. In a way this is all fine.
It definitely looks like a good moment to look into the tech stocks to see if one can find a golden eggs but it might just as well be that in 2006 the tech stocks were crazy overvalued and today they are maybe still overvalued. The additional argument used was that producers of household goods and health-care had in the same period, so from September, increased by 14%.
Hmmm... so as a contrarian I should have been running my investment philosophy based on %-age up and down of different branches and additionally I should invest on a 6-7 months scale. I guess they are talking about the Speedy Gonzales Contrarians.
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