Contrarian Risk

by | Jan 23, 2015 | Archives

The nature of value investing is to be contrary.  Markets rise and fall, long term, guided by forces of nature.  Markets jump up and down, short term, based on the human whims of fear and greed.  Hot markets are almost always overbought and severely corrected markets are almost always oversold.  This makes contrarian investing really simple.  All you need to do is what most investors are not.  Right?

Nothing in investing is ever simple.  Doing whatever the majority of the market is not doing may expose you to good value stocks, but this process also reveals troubled companies.  Good value selectivity is also required to create an effective contrarian strategy.  Contrarian investors need tactics that weed out the dogs from the good value.

erci roseman

Eric Roseman manages the ENR Global Contrarian Income Account.

The Contrarian Value Income account buys distressed global, dividend-paying equities at near low prices.

The margin of safety the fund seeks is low price, low debt,  high cash-flow, strong global brands and strong management.

The fund’s managers look for ‘event-driven’ change; spinoffs and macro catalysts that lead to change and revaluation.  For example shares in oil companies are being revalued now.

The fund only invests in stocks that pay dividends, have growth greater than inflation and are near or at 52-week low prices.

The fund diversifies currencies for profit potential and to reduce risk.  During the 2008 financial crisis when the Morgan Stanley Capital Index (MSCI) World Index was down 42%, the MSCI Europe Africa Far East (EAFE) down 44% and the S&P 500 Index down 40%, the ENR Contrarian Global Fund only fell 10.5%.

To help you develop your own plan that can take advantage of falling share prices and a strong greenback, we are sharing access to five ENR International Investing Conference Calls by Eric Roseman and Thomas Fischer of ENR Asset Management.  The conference calls were conducted January 12 and 13, 2015.  They are available to hear by phone for 30 days.  Each call reviews a different type of portfolio management.

You, as a Gary Scott reader, can listen in free until the recordings expire.   Last Saturday  we began by looking at a low risk portfolio strategy.

Today we are sharing a Global Contrarian Income strategy.

Eric Roseman and Thomas Fischer are my investment advisers at ENR Asset Management.  ENR is the access route to an investment account with Jyske Bank.  Merri and I are sponsoring two Multi Currency Asset Allocation seminars with ENR so you can meet Eric and Thomas.

You are invited to meet them first via these conference calls.   Join in at no cost as a Gary Scott reader.

Call 905-694-9451  or 1-800-408-3053 and use the  Global Contrarian Income passcode: 622419947 #

Click below to see the Power Point Presentation.  This is an excellent review and handy to have available as you listen to the Global Contrarian Income call.

enr contrarian

Contrarian Income (JAN 13 2015)

Links to the Low Risk, Medium Risk and Dynamic Risk portfolios are at

Warren Buffet clarified the purpose of  being contrary when he stated that it is incorrect thinking to believe that buying a business or stock is an intelligent purchase simply because it is unpopular.  A contrarian approach is just as foolish as a follow-the-crowd strategy if it is not applied with thought.  Being contrary exposes you to stocks that are more likely to have value. Combine a contrary attitude with a good value plan and your chances for safety and profit grow.


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