Good Time to be a Contrarian?

~ Below is an interesting article with the father of contrarian investing, David Dreman. As a true contrarian, Dreman recommends investing in, you guessed it, banks and other heavily discounted equities. He specifically points out KBE, XLF (The former is an financial index fund and the later is an ETF), and GE. Other banking funds that might be of interest are VFH, UYG, IYF. Remember, these funds are not for the faint of heart and carry considerable downside risk. Over the long haul (5, 10, 15 years) some of these heavily discounted funds might prove extremely profitable, yet it takes a lot of courage to invest when 'blood is in the streets.' As the great Warren Buffett once pointed out, "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."

Read the David Dreman article here.