“Booming markets foster illusions; bear markets pull back the curtain,” says Chris Mayer. Contrarian thinking gives a peak behind the curtain before everyone else. The key is to be unafraid to go against the crowd…

More on contrarian investing from Penny Sleuth:

Contrarian thinking is an important ingredient to investment success.

Running against the crowd often produces investment success…but not always. The essence of a contrarian investment approach is, as author Humphrey Neill memorably put it, “When everyone thinks alike, everyone is likely to be wrong.”

“Everyone” in Wall Street parlance usually means derisively “the crowd” or “the herd.” Market lore is replete with tales of the madness of crowds and the follies of following the herd. Most people like to think they are not part of the multitude, yet by definition, most people are.

Today, as we gaze back at a market peak that looks more magnificent with the passage