Wells Capital’s James Paulsen has been bullish — correctly — throughout much of the bull market that began in March 2009. But now, Paulsen says that a key sentiment indicator that has predicted many former declines is flashing a warning signal.
While some measures of short-term sentiment have gotten quite bullish, Charles Schwab Chief Investment Strategist Liz Ann Sonders says that long-term indicators show the stock market’s Wall of Worry remains firmly in tact.
Charles Schwab Chief Investment Strategist Liz Ann Sonders says that while a rise in investor sentiment has made the market more vulnerable to bad news in the short term, she remains optimistic on stocks for the longer term. “My optimism in the medium-to-long-term has not been dented by the latest sentiment readings,” Sonders says in her latest market commentary on Schwab’s site. “Last week was the 26th consecutive week of better-than-expected economic news. Of the… Read More
Mark Hulbert of Hulbert Financial Digest says his index of newsletter sentiment has fallen as low as it did at the market bottom in 2009 — a bullish sign for investors. Hulbert says the average equity exposure among the newsletters is now -20%, meaning the newsletters are recommending a 20% short position in stocks. Given that the market often acts in a contrarian fashion, Hulbert says that means there’s support for a market gain in… Read More
In his latest column for MarketWatch, newsletter-watcher Mark Hulbert of Hulbert Financial Digest makes an interesting observation about fear and contrarian investing, one that echoes the findings of one of the great gurus we follow, Martin Zweig. Writing about the recent Las Vegas Money Show, Hulbert says that sentiment among the conference’s presenters was decidedly conservative and measured. “More often than not, they devoted their talks and workshops to managing risk and avoiding further losses… Read More