Addiction to Central Bank interventions, have left market participants complacent, unrealistic and weak-minded. Stocks have rallied 20% since October lows, based on intraday levels. But investor sentiment also has gained, and that’s a bad sign for contrarian investors. No one learns lasting lessons or better behaviours from the expectation of repeated bail outs. Without critical thinking and concern for the downside, market participants are left exposed and vulnerable to the inevitable disappointments and losses that follow high hopes. Watch this clip.
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Cory’s Chart Corner
Load MoreMany will focus the blame of market drawdowns on the tariffs and ignore the fact the SP500 (only a few weeks ago) was trading at 4 std devs above its historical mean…valuation also matters.
BREAKING: The European Union is preparing further counter measures against newly announced US tariffs of 20%, per CNBC.
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Thats odd. Mark Hulbert was just on Chicago’s WBBM Noon Business Hour stating he was BULLISH on the stock markets! Talk about duplicitous flip-flopping.
Still contrarianly mostly in cash…looking very dumb. Danielle, I need a pep talk here.
last time the sentiment surveys were this high the market drifted higher for about a week or so then dropped so don’t expect an immediate reversal this time. patience is needed if you are short here.
Permabear sites look good when the market tanks. Permabull ones look good when it rallies. Finding the sites and analysts that nail the turns consistently is the hard part.