I’m a Contrarian Indicator (at least on stocks)

On March 9, I wrote:

Until investors are satisfied that the Madoff’s of the world have been dealt with appropriately, and convincing steps have been taken to assure that there won’t be any more . . . don’t hold your breath waiting for a sustainable stock market rally.

–Ross Kaplan, “Bernie Madoff & the Path to Recovery“; City Lakes Real Estate Blog

So when did the Dow Jones bottom?

On March 6, at 6443.27 (intraday). Of course, it’s up more than 50% since then.

On the other hand, Bernie Madoff has now been sentenced to 150 years in prison, and it appears to only be a matter of time before his inner circle is also behind bars.

P.S.: contrary (no pun intended) to popular opinion, contrarian indicators can be extremely valuable prognosticators.

Like “Opposite George” on Seinfeld, you just do the opposite. In fact, that’s how I decide what movies to see: I simply ask my sister what she’s seen lately that she hated.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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