Nancy has been following the stock market, and has noticed that it has been declining for the last several weeks. While many of her friends and family have sold stock, Nancy looks at this situation as a good opportunity to buy. Nancy's views are consistent with the ________ approach to investing in the stock market.
A) contrarian
B) revisionist
C) arbitrarian
D) negativist

Question

Quizplus · Accepted Answer

The average investor tends to sell stocks when their values have declined and buy stocks when their values have risen. Contrarians go against the grain. They tend to buy when most others are selling. The logic of this approach is that the best time to buy stock is when prices are low-i.e. when the market is in decline.

Nancy Has Been Following the Stock Market, and Has Noticed