THE PSYCHOLOGY OF MONEY. CONTRARIAN INVESTORS

AM | @MackinlayEuruni

Sources. Evelyn Ehrlich & Duke Fanelli. The financial services marketing handbook. Tactics and techniques that produce results. Bloomberg, 2012, introduction.
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"Financial services are about money, and money carries a lot of pyschological baggage. People's attitudes towards money are highly emotional. Thig might matter less at the institutional level, but for the consumer marketer, hitting the right emotional tones can be critical. One financial institution, for example, developed a typology that classified attitutes and behaviors towards financial markets into five categories, based on the following variables: degree of control over spending and saving, interest in and knowledge about money matters, desire to accumulate versus spend, and trust in or need for advice.

Other typologies have addressed investor psychology — for example, markety-follower versus contrarian, degree of risk tolerated, or spending and saving behaviors" (p. 6).

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CASE STUDY: HEDGEYE. Contrarian! See Keith McCullough's Twitter account.

. "Michigan Consumer conf is so bombed out, maybe they "surprise" positive, then we get really short";

. "...agreed, we were more bullish than any firm on #OldWall in April of 2009",

. "US stocks $SPY were down -1.8% for July coming into today; now these tele marketers can call everything fine and flat"; 

. "BREAKING: despite early morning storytelling about earnings being great, US stocks close down for the 4th day in a row".

See VIDEO: Long-term investing. Does it work?
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