Bullish Sentiment Seems High, But is it Really?

By on January 15, 2011

Prieur du Plessis has written a short article posted at Barry Ritholz’s The Big Picture blog regarding investor sentiment. He follows with his own poll that investors can access at the source link below. An excerpt:

Sentiment indicators from the AAII (individual investors) and Investors Intelligence (newsletter writes) indicate that stock market sentiment is at historically high levels, and has been for a while. However, whenever I discuss stock markets with people – ranging from private investors to institutions to journalists – most of them seem to be more concerned about a looming correction in the near term than being bullish. Maybe it is just a question of communicating with different people from those participating in the surveys, but anecdotally I do not observe particularly bullish sentiment.

SMA Comment:  When I cast my vote in the poll it was a pretty even split with 36.4% bulls, 25% neutral, and 38.6% bearish on the market’s outlook over the next 6 months.

Source: The Big Picture

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