The Counter-Intuitive Investor

A Blog by Stephen Perry

The Problem With Short-Term Stock Market Predictions

Everyone wants to know, “What’s the market gonna do?”. This question is meant to elicit a prediction for the next week, month or year, as if the person being asked “knows something” the person asking doesn’t. On the other hand, maybe it’s just a conversation opener, like “How’re you doing?, or “Hey man (dude) what’s

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Strategic Stock Accumulation (SSA) in a Nutshell

  Investors have asked me to summarize Strategic Stock Accumulation Strategy (SSA). I certainly understand their reasoning. Is the relatively short time required to learn the system worth the effort? After reading and evaluating a short synopsis, does the strategy sound compelling enough to warrant further portfolio consideration? With that question in focus, and to

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Fear and Bear Markets

Fear is the second of the two most powerful emotions elicited by the stock market. The other, of course, is greed. Humans tend to exaggerate these emotions when events tigger the onset of either one. In this post, I want to discuss this negative emotion, fear. Fear of loss (of almost any kind), according to

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Patience Is Paramount

Patient investors do best in the stock market. Why is this true? It sounds intuitive, but this is actually counter-intuitive for many investors once the “rubber hits the road” during a severe bear market. Most investors  think they have to “do something”, which, for most of the time means selling stock. Usually, this is a

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When Do “Animal Spirits” Drive the Stock Market?

The term “animal spirits” was coined by John Maynard Keynes, highly regarded early twentieth century British economist. He used it to describe the buying behavior of investors who showed a herd-like mentality of irrational exhuberance whenever stocks were in a strong bull market. When the stock market continues to advance and investors continue buying overvalued

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