It is a line of thought that I am keen to develop: that is the belief in a reality that usurps fear and greed, an existence that underpins the stability of the financial system and that exists irrespective of our emotions. I think there has been a firm metaphysical foundation to investment and hence support to contrarian and value biased views, but that at certain points this has often only been through fortuitous outcomes.
We are at a point in time when the outcomes are not guaranteed, and while life and survival may carry on regardless, the status quo may not.
The basis of most contrarian belief is a survival of the paradigm and the implication that most threats to the paradigm are perceived and not real.
Yes, demand can and does move prices far from the reality of the underlying, but what of value when the underlying shifts? This is what I believe is the risk we are currently facing.