William Trent1

Extreme Bearishness a Definite Bullish Sign

I'm not sure I would say either. But when bearish sentiment exceeds bullish sentiment the average return is fairly consistently in the 4% range over the following 3 months. There doesn't seem to be a significant advantage to finding the "end" as opposed to identifying the overall bearishness.

1Q07 GDP Data Shows Current Rally Rooted in Optimism, Not Profits

Any favorites you can tip me on?

Stock Prices Pull Ahead of Profits: Break From Cyclical Valuation Patterns?

At a -2% savings rate that doesn't sound like a ton of capital idling around for two weeks.

Stock Prices Pull Ahead of Profits: Break From Cyclical Valuation Patterns?

There's certainly a lot of liquidity in the market, but tighter credit standards could remove some of that liquidity. As far as what will happen in 2007 to P/E multiples I hesitate to guess. I'm more sure of the long-term trend - though as I admit in the article the long term is made up of a series of short terms...

Also, I don't think there's any such thing as capital "on the sidelines." It is in some asset such as cash, bonds, foreign stock, real estate etc. Any money going into stocks would have to come out of one of those.