Contrarian Betting Strategy

Many of us have heard the phrase “contrarian betting.” What’s the thinking behind being a contrarian bettor? If everyone hates a stock (or other investment), that stock might be undervalued and be a good long-term investment. Historically, buying “value stocks” has been one of the best methods of investing in the stock market.

Similarly, we can profit in the sports marketplace by finding value and betting on undervalued teams. Some handicappers follow sports closely and can find value in various match-ups and games. Another method is to use Betting Trends data available to members of Sports Insights. If a certain match-up has more than 75% of the bets on one side, it often means that the general Public is overvaluing that side. As a result, there is often “contrarian value” on taking the other side of that bet. Contrarian betting has proven to be a profitable strategy when sports investing in the major US sports.

Some sports investors note that this tool is particularly useful for “big games” such as nationally televised games, rivalries or other games that attract the attention of the “general public.”

For example, say that the New England Patriots are playing the New York Jets and 85% of the bets are coming in on the Patriots. This is often an indication that the sports marketplace is overvaluing the Patriots (and undervaluing the NY Jets). Historically, taking the NY Jets and contrarian betting, or Betting Against the Public, would be a profitable play.