About 3 years ago (early 2000) I made a transaction with the business manager of an auto dealership. Fairly intelligent guy. I met with him a few times over the course of a couple weeks. All he wanted to talk about was the stock market. He was buying this, he was buying that. This hot tech stock, that hot tech stock. Triple-digit price-tags. Double-digit daily gains. He was on top of the world. Smiles abound.I saw him a few times over these past few years. Each visit I found his mood gloomier than the last. "I don't know what to do anymore... my stocks just keep going down and down. It's horrible."Fast forward to recent times, now 3 years later. I met with him again on a couple occasions this past month. His mood has picked up some. Why? He turns his computer monitor to face me; Yahoo! Finance home page appears. "I'm short this one and this one and that one. And I'm thinking about shorting this one and that one." He's been making a few bucks here and there since he's changed his strategy.And interestingly enough, these are some of the very same stocks he was buying at triple-digit prices just 3 years ago.I tried steering him in another direction regarding his newfound investing strategy, but I think I've failed miserably. His mood has lifted because he's been making some dough on the short side, and he's not about to mess with his (recent) success.Now I may be wrong, but I'm beginning to think that he may be an excellent contrarian indicator.; )
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