Negative sentiment is soaring because of uncertainty over the economy and many other issues. This chart tracks a survey from Investors Intelligence of negative or bearish sentiment on the stock market. The survey tracks the percentage of investment newsletters that are negative on stocks at any given time. The percentage has gone up significantly.
Source: Bespoke Investment Group
This has interesting implications for investors. Negative sentiment tends to follow recent performance, as you can see from the levels back in late 2008 and early 2009. Though the negative levels are not as high as they were back then, this still is a positive contrarian indicator for long-term investors.
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