Looking for an “anti-consensus” indicator to help determine potential turning points in market environments, a research note from Morgan Stanley notes that being a contrarian might not be profitable during periods of continually rising stock prices but can be very helpful towards identifying meaningful turning points. Morgan Stanley: Using contrarian indicator to measure fund performance The firm compiled a database of European equity funds to measure their performance over time. With this in hand, the investment management adviser used this data to determine five recent points at which the market environment changed and provided material opportunity for investors. The first…
Morgan Stanley Asks Can Fund Performance Be A Contrarian Indicator?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.