Contrarian trading strategies are widely covered by finance literature. Theoretically, when the market is rife with good news about a company, investors should consider selling the stock. Rapid price appreciation driven by investor demand tends to attract media attention and further praise from stock analysts. A contrarian investor would argue that this is the optimal time to sell because the price is likely bobbing near the top. Conversely, a firm that disappoints market participants and experiences a decline in valuation may be recognized by a contrarian investor as a buying opportunity. The bad news is out. The sellers have purged themselves of the stock. The price is low. At that point, a buy order is a bet on a brighter tomorrow.
Like stock values, relationships are subject to human psychology and tend to reflect some of the same contrarian patterns. Specifically, when interaction between parties reaches its heights, a disagreement may be fast approaching. Indeed, when things are going well between people or entities, positive emotions may help transform confidence into hubris and caution into receptiveness. In this environment, mental filters are relaxed, augmenting the potential for hurt feelings.
Arguing that a relationship may be ready to resume an upward trajectory once it hits a low point is equally intuitive. Applying contrarian principles, a time of stress often leads to finer vocal filters as well as greater reliance on niceties and patience.
I’ve been cognizant of these contrarian relationship patterns for at least a decade. Like data used by economists to predict recessions, these trends lend themselves to forecasts of human interaction. At times, I feel that awareness of these tendencies impacts my behavior, propagating or self-fulfilling the contrarian prophecy.