This week’s Investor’s Intelligence survey showed a drop in bullishness from 55.5% to 52.7%. Bearishness declined to just 19.1%. The current bull/bear spread has been consistent with markets that tend to perform poorly in the near-term, however, this latest bout of high bullishness has appeared unbreakable. Although sentiment appears to be moving towards a more moderate level this remains an extremely high historical point for bullishness. This is consistent with the continuing high levels of bullishness in the AAII survey.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.