Dreman's Contrarian Investment Strategy

Dreman's Contrarian Investment Strategy is grounded in the idea that investors can achieve better returns by going against prevailing market trends. When the market or a stock is overly optimistic and prices rise too high, the strategy suggests selling or avoiding it. Conversely, when emotions cause panic and prices fall too low, it advocates buying undervalued stocks. This approach relies on thorough analysis to identify opportunities others overlook, based on the belief that market overreactions often lead to mispriced assets, creating potential for profit when the market corrects itself.