Sentiment Measures Are Not Reliable Investment Cues

The topic of market sentiment and how it manifests in stock price shifts and investor behavior is addressed in this week’s Enterprising Investor. In today’s post-election market, the article points out that sentiment measures have increased. “A recent Investors Intelligence Sentiment Report registered 65% bulls—not an extreme reading, but above the roughly 45% average.” The author warns, however, that such measures alone are not reliable. “Investors should not base their decisions on psychology alone,” it… Read More