Home » Most Recent Stories, Strategy Lab

BEARISH SENTIMENT AT RECORD LOWS

5 March 2009 by Cullen Roche 0 Comments

According to AAII, investor sentiment is at its worst level since the association began tracking sentiment readings in 1987.   70% of investors are now bearish compared to the 1990 record of 67%.    If you have a 10 year time horizon the odds are beginning to look very favorable for equity investors.  Unlike the legions of investors who have proclaimed buy and hold dead, I actually believe it is more viable than ever right now (though that doesn’t make it my strategy of choice – all investors have different time horizons, risk parameters and goals).

Looking back at every point when the market returned less than 2.5% for 10 years, it then returned an average 13.3% for the next 10 years, with a range of 7.1% to 18.6%.

Cullen Roche

Cullen Roche

Bio - Coming Soon.

More Posts - Website

Follow Me:
TwitterYouTube

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.