FYI: The mood on Wall Street has shifted from fear to greed. And, like clockwork, contrarian-minded investors have shifted their short-term outlook in precisely the opposite direction, from positive to negative.
To appreciate how big a mood shift has taken place, consider where sentiment stood in early August, which was the last time I devoted a column to a contrarian analysis of sentiment. I reported then that stock-market timers were running for the exits, which in turn gave the bull market “a new lease on life.”
Since then, the S&P 500 SPX, +0.53% has gained close to 3%, taking this U.S. market benchmark to a new bull-market high, surpassing its previous high set in late January.
Today, in contrast, the majority of stock market timers are on the bullish bandwagon, reflecting an underlying enthusiasm if not outright exuberance. That is why contrarians now believe that the market will be heading down.
Regards,
Ted
https://www.marketwatch.com/story/investors-now-are-greedy-and-thats-bearish-for-stocks-2018-09-14/print
