Against the Herd

The public needs to think independently and not be duped, particularly because those who are selling their messages or promoting their ideas have a plethora of powerful media through which to do so. Against the Herd presents six contrarian views of major events that will shape the future. Steve Cortes of CNBC pulls no punches in explaining these trends.

Many will find his views counterintuitive and even controversial. Some will find his forecasts alarming. But open-minded readers who are willing to heed his well-informed advice will find it illuminating, beneficial, and profitable.

• Steve Cortes presents six contrarian views of major events that will shape the future for investors including the fall of China and the end of the golden era of free trade
• The contrarian stances are presented because they are actionable
• Reveals how these events will affect global markets and specific investments, and how and when to take advantage of these key moves

Against the Herd shows you how to profit by bucking conventional wisdom and what to do to get ready when situations call for contrarian investing.

Chapter 1 The Corleones Meet Confucius 7

The Chinese Mirage of Miracle Expansion

Chapter 2 Dolls Are Meant for Children 33

Japan Stares into the Abyss of a Death Spiral

Chapter 3 Can’t Touch This 57

Resist the Allure of Gold

Chapter 4 House of Pain 81

Housing Does Not Recover Anytime Soon

Chapter 5 You Can’t Handle the Truth, or the Volatility 123

Don’t Own Stocks (or at Least Not So Many)

Chapter 6 Still the One 151

Get Long-Term Bullish on America

Conclusion 175

Notes 177

Acknowledgments 185

About the Author 187

Index 189

STEVE CORTES appears daily on CNBC’s Fast Money where he is one of several regular commentators. He also appears frequently during Fast Money’s “Halftime Report.” He is the founder of Veracruz, a consulting firm providing real-time market research to brokers/dealers, hedge funds, and sovereign wealth funds. His research covers topics ranging from global markets and equity sectors to currencies and fixed income. In addition to trading independently, Cortes provides market consulting services to a number of institutional clients.

Human beings look for safety in numbers, but when it comes to investing, going with the flow isn’t necessarily a good idea. In an age when the financial sector and the media can seemingly spin rumor into reality overnight, the savvy investor needs to know when to break from the pack, and Against the Herd: 6 Contrarian Investment Strategies You Should Follow is here to give you the strength and guidance to do so.

Cautioning readers to develop and maintain a healthy skepticism towards conventional market wisdom, contrarian investing expert Steve Cortes presents six alternative opinions on major international investment events. These include challenging the belief that China will become the number one superpower; arguing that Japan’s economy is in an unalterable downward spiral; contesting that investing in gold doesn’t provide stability; explaining why the housing market still has a long way to go before it hits rock bottom; illustrating why market volatility makes investing in equities dangerous; and making a compelling case that, despite the events of the last few years, America will remain the preeminent financial powerhouse on the planet.

Pulling no punches, Cortes presents genuinely actionable alternatives to common market wisdom that you can use to maximize profit. Revealing how these contrarian forecasts—while sometimes counterintuitive, controversial, and even alarming—willhave a profound effect on global markets and specific investments, the book provides invaluable information on how and when to cash in.

Blindly following the trends defined by the financial world can be a recipe for disaster. With Against the Herd in hand, you have everything you need to swim against the tide and protect your portfolio for the future.