Investor Sentiment Shifts to March 2009 Levels!
by Tiho Brkan, The Short Side of Long
Lowest percentage of bullish newsletterĀ editorsĀ sinceĀ March 2009
Source:Ā Short Side of Long
Throughout this bull market, which has lasted for over 6 years now, many times we have heard that sentiment was as low as during the depths of Global Financial Crisis of 2008/09. However, majority of the time, that was just not the case. Having said that the story has changed (at least according to one historically reliable indicator), which has now droppedĀ like a rock.
Investor Intelligence Survey has been around for many decades and it aims to track the mood and opinionĀ of financial advisors and newsletter editors. Readings reported yesterday show that bullish advisorsĀ have now fallenĀ below 30% for the first time since March 2009. Furthermore, this reading is two and half standard deviations below the mean.
Historically, it is very rare to see bullish percentage fall below 30% in this indicator. If the closely observe the chart above, ver the last two decades bullish readings below 30% were seenĀ during the October 2002, November 2008 and March 2009.
