Dreman's Contrarian Approach

Dreman's Contrarian Approach is an investment strategy that involves buying stocks when others are pessimistic and selling when others are optimistic. Based on the idea that markets often overreact, this approach seeks to buy undervalued stocks during downturns and avoid overheated markets. It emphasizes the value of patience and discipline, focusing on stocks that have been ignored or disliked but have strong fundamentals. By doing the opposite of popular sentiment, investors aim to achieve higher returns over the long term, capitalizing on market fluctuations and the tendency for investor sentiment to swing excessively.