Friday, June 20, 2008
More Contrary Indicators
Researchers are often talking about sentiment on Wall Street, and how it corresponds to S&P 500 returns. I'm a pretty strong believer in bearish sentiment as a reason to buy stocks. I've founds some more strong evidence from a post at Bespoke Investment Group. It shows various points throughout the decade of when Investors Intelligence bullish sentiment readings were at these levels. Each of the past couple of times this happened, stocks rallied nicely soon thereafter. Although the sample time period isn't that extensive, it is worth noting.
By the way, Bespoke Investment Group continually puts out a lot of great data like this, and offers even more if you're a subscriber of their premium services.