A Penny Saved

Sometimes it pays to go against the flow, to head in the opposite direction of the crowd. To be contray. Most of us know that if you wait until spring, when everyone else is buying lawnmowers, it can be a great time to purchase a snowblower. Or, when it is late fall and everyone esle is buying snowblowers, it can be a great time to purchase a lawnmower. The same goes for clothes (coats in spring, swimsuits in fall). Or maybe you really should buy that truck or SUV now since they are out of favor (and prices are being slashed)?

This can also be true in the stock market.  In my reading, I see financial writers telling people to invest in other things right now since the stock market is not doing well. To me, if people are heading out, it may be a good time to head into stocks. Or maybe since the home market is in shambles, could be time to investigate real estate.

The bottom line I guess is to be wary of the herd mentality. Just because eveyone else is heading a certain direction does not mean you have to also. It’s not bad to be a little contrary!