Contrarian Investment Strategies in the Next Generation (Google eBook)

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Simon and Schuster, Jun 30, 2008 - Business & Economics - 400 pages
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David Dreman's name is synonymous with the term "contrarian investing," and his contrarian strategies have been proven winners year after year. His techniques have spawned countless imitators, most of whom pay lip service to the buzzword "contrarian," but few can match his performance. His Kemper-Dreman High Return Fund has been the leader since its inception in 1988 -- the number one equity-income fund among all 208 ranked by Lipper Analytical Services, Inc. Dreman is also one of a handful of money managers whose clients have beaten the runaway market over the past five, ten, and fifteen years.
Now, as the longest bull market in the history of the stock market winds down, there is increasing volatility and a great deal of uncertainty. This is the climate that tests the mettle of the pros, the worries of the average investor, and the success of David Dreman's brilliant new strategies for the next millennium.
Contrarian Investment Strategies: The Next Generation shows investors how to outperform professional money managers and profit from potential Wall Street panics -- all in Dreman's trademark style, which The New York Times calls "witty and clear as a silver bell." Dreman reveals a proven, systematic, and safe way to beat the market by buying stocks of good companies when they are currently out of favor. At the heart of his book is a fundamental psychological insight: investors overreact. Dreman demonstrates how investors consistently overvalue the so-called "best" stocks and undervalue the so-called "worst" stocks, and how earnings and other surprises affect the best and worst stocks in opposite ways. Since surprises are a way of life in the market, Dreman shows you how to profit from these surprises with his ingenious new techniques, most of which have been developed in the nineties. You'll learn:
  • Why contrarian stocks offer extra protection in bear markets, as well as delivering superior returns when the bull roars.
  • Why a high dividend yield is just as important for the aggressive investor as it is for "widows and orphans."
  • Why owning Treasury bills and government bonds -- the "safest investments" for centuries -- is like being fully margined at the top of the 1929 market.
  • Why Initial Public Offerings are a guaranteed loser's game.
  • Why you should avoid Nasdaq ("the market of the next hundred years") like the plague.
  • Why crisis, panic, and even market downturns are the contrarian investor's best friend.
  • Why the chances of hitting a home run using the Street's best research are worse than being the big winner in the New York State Lottery.

Based on cutting-edge research and irrefutable statistics, David Dreman's revolutionary techniques will benefit professionals and laymen alike.
  

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Contents

Introduction 1
15
PART I
25
From Technical Analysis to Astrology
40
Bigger Game Ahead
48
PART II
56
THE EXPERT WAY TO LOSE YOUR SAVINGS
65
Nasty Surprises
117
Toute la Difference
123
PART IV
259
An Investment for All Seasons
279
What IS Risk?
297
Small Stocks Nasdaq and Other
316
An Attack on Contrarian Strategies
325
Beware of Nasdaq and Small Stock Trading Costs
333
The Index Trap
339
PSYCHOLOGY AND MARKETS
345

Pulling the Trigger
129
ASurprising Opportunity
136
PART III
137
Boosting Portfolio Profits
160
A New Powerful Contrarian Approach
193
I0 Knowing Your Market Odds
214
Profiting from Investor Overreaction
238
Beyond Efficient Markets
373
Modern Portfolio Theory
399
Contrarian Investment Rules
405
Glossary of Terms
411
Notes
421
Index
449
Copyright

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About the author (2008)

David Dreman is the founder and chairman of Dreman Value Management L.L.C. in New York Red Bank, New Jersey, a firm which currently manages over 4 billion dollars of individual and institutional funds.

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