Contrarians betting against the herd have often been very successful. For example, John Paulson and Michael Burry made billions by shorting CDOs that lead to the 2008 crisis. The movie "The Big Short" is an Ok dramatization of how it all unfolded.
Same herd mentality, different soapbox.
Corgipower12 · 1h ago
I wonder if it is because we hear about people who are successful betting against the herd.
Investing in the QQQ or S&P 500 can often be a better idea than doing literally nothing.
Corgipower12 · 2h ago
There is a lot of psychology in the reasons why.
Corgipower12 · 2h ago
We analyzed hundreds of stock recommendation videos from finance YouTubers (aka finfluencers) and backtested the results. Turns out, doing the opposite of what they say—literally inverting the advice—beat the S&P 500 by over +6.8% in annual returns (but with higher volatility).
Finnucane · 2h ago
how does that compare to betting against Jim Cramer?
Same herd mentality, different soapbox.
https://www.cnbc.com/2025/04/05/heres-why-dead-investors-out...
Anyone know how it is doing recently?