Investor Sentiment at 7 Year Low
Global stock markets have been swooning for nearly nine months. This has led to an extreme reading in investor sentiment not observed often. This could indicate a bottom is near, however, there could be unknown credit events lurking due to the large leverage in economies worldwide.
According to The Fat Pitch: “The oldest gauge of investor sentiment, the Investors Intelligence bull/bear ratio, dropped to a 7-year low this week. By this measure, equity investors haven’t been this worried since the depths of the 2008 meltdown. Prior lows have corresponded with the ends of bear markets (1987, 2003, 2009) and the ends of recessions (1990).”
Source: The Fat Pitch