Contramarket stock

Contramarket stock

In the context of general equities, stock that tends to go against the trend of the market as a whole, such as a commodities-related stock or one in an industry out of favor with investors in a bull market.

Contramarket Stock

Stocks that tend to do well when most of the market is performing poorly and that do poorly when the market is performing well. A key to finding contramarket stocks, in addition to regular due diligence like surveying past performance, is finding companies that might profit when people either do not have money or think that they do not. For example, budget retailers and fast food restaurants tend to be stable and even experience some earnings growth. Likewise they may not do as well during economic expansion because more consumers seek luxury products.