When the S&P 500 was flirting with 7,000 back in January, everyone wanted in. Now, with the index 400 to 500 points lower, the mood has flipped to fear. That disconnect between price and psychology is exactly where contrarian investors Jeff Clark of TradeSmith and Andy Swan of LikeFolio see opportunity.
The setup is simple: risk gets priced out on the way down, not on the way up. Buying at 6,500 is a smarter risk-reward trade than buying at 7,000, even though it feels worse. Clark and Swan are targeting three beaten-down sectors where sentiment has overshot to the downside—and flagging one popular sector where FOMO may be setting a trap.
