Investor Sentiment Shifts to March 2009 Levels!

Investor Sentiment Shifts to March 2009 Levels!

by Tiho Brkan, The Short Side of Long

Lowest percentage of bullish newsletter editors since March 2009

investor sentiment shifts

Source: 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 dropped like a rock.

Investor Intelligence Survey has been around for many decades and it aims to track the mood and opinion of financial advisors and newsletter editors. Readings reported yesterday show that bullish advisors have now fallen 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 seen during the October 2002, November 2008 and March 2009.

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