The latest AAII survey shows U.S. individual investor bullishness at its lowest level since QE2...


The latest AAII survey shows U.S. individual investor bullishness at its lowest level since QE2 was launched, down to 24.4%, and bearishness also at its highest since August, up to 47.7%. But unlike prior market corrections, where investor sentiment typically follows price, Bespoke notes that sentiment has led prices lower during the current pullback.

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  • Windsun33
    , contributor
    Comments (4431) | Send Message
     
    Following my usual anti-herd instincts, I went from 80% cash to 12% cash just before market close yesterday.
    9 Jun 2011, 11:02 AM Reply Like
  • J 457
    , contributor
    Comments (1000) | Send Message
     
    Hopefully you bought SDS, DXD, QID.
    9 Jun 2011, 12:08 PM Reply Like
  • Windsun33
    , contributor
    Comments (4431) | Send Message
     
    (MOS) (DE) (MOO) (POT), a couple others.
    9 Jun 2011, 01:41 PM Reply Like
  • Denis Ouellet, CFA
    , contributor
    Comments (72) | Send Message
     
    INVESTOR SENTIMENT SURVEYS: DON’T BE TOO SENTIMENTAL! at www.news-to-use.com/20...
    9 Jun 2011, 11:54 AM Reply Like
  • Windsun33
    , contributor
    Comments (4431) | Send Message
     
    That site pretty much matches my feelings on such types of surveys. Extreme negatives are often a good time to buy, or at least look. Extreme positives may or may not mean much, but are often a signal to start takng profits.

     

    But anyone that bases their investments on a single survey is gonna get smooshed. Even at the extremes they are nothing more than alerts to take a look, not buy or sell signals.

     

    But in that particular survey, make note of the fact that they said it was reversed from the usual pattern where saging sentiment follows a sagging market - in this case it may have CAUSED the sagging market, which indicates to me that the herd - not value or fundamentals - is in charge.
    9 Jun 2011, 01:46 PM Reply Like
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