The stock market can be a crazy place. The stock prices of various stocks tend to fluctuate up and down depending on the emotions of the masses, whether they are drawn towards greed or fear.

Even the stock market strategy of contrarian investing has shown issues in recent years. For instance, in the Financial News, it was demonstrated that the famed contrarian investor Hugh Hendry had lost eight percent on his Eclectica Fund in 2009. The financial statement of his 2009 fund showed that it was fared drastically worse than other hedge funds as most others grew by up to thrity two percent.

While the contrarian investor's strategy performed poorly in 2009, Hendry shows great strength in 2008 when it earned $13.7 million. In 2010, he has also performed much better in a variety of markets.