Man is genetically programmed to act with HERD mentality. It is our way of survival in numbers, we thrived and anyone who went on his own way invariably perished. So it is innate in our thoughts and actions that we act in unison. Even if we are wrong it gives us great strength in knowing that it is not only us but a whole lot of people who made similar mistakes that acts as a balm in helping us live with bad investment decisions.
However, there is a contrarian approach in investments that also merits some discussions contrarian thinking. To put it simply, is to think away from the crowds i.e. if the whole market is thinking in a particular direction, then this involves looking at it differently.
Especially in the current equity market scenario where the liquidity is the main driving force and not fundamentals, there is merit in looking at the contrarian approach to investing. Some of the contrarian approaches that one could be looking at are beaten down sectors like Pharma and Information Technology, within equity, which have not been part of this stupendous rise.
Another approach could be to look at other assets like Debt options which while being low, where return could also be relatively safer, or some small diversifications into GOLD, why not even some small diversifications into investments like Bitcoins.
These are possibly the best times to be CONTRARIAN, you may get the best payoff, currently, in the equity markets the upside seems limited, while the downside in equity markets seems high.
So go forth think differently, for it is people who THINK and ACT different, who have the power to CHANGE this world.