Contrarian Over Momentum Investing

Investors and professionals often fall into the trap of momentum investing, looking at past performance to predict future success. However, this approach is not always disciplined or successful, especially during market reversals. Being a contrarian investor can be more effective, particularly during value time horizons. It is crucial to pay attention to the tense used when discussing investments, as what has been going up may not necessarily keep going up. Pure momentum trading can be risky due to significant reversals in the market's history, like the period following the GFC. Therefore, a balanced approach that incorporates contrarian strategies may be more favorable in volatile market conditions.