According to the AAII investor sentiment survey, the percentage of bullish investors slipped to 28%. This is a further decline from last week’s reading of 33%. This reading can be seen as a contrarian indicator and may be showing excessive signs of bearishness at the current juncture.
The NYSE is also reporting a 1.13% climb in short interest. As investors become increasingly skeptical of the “green shoots” and economic recovery we are seeing an increasing amount of bearish bets at the NYSE.
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.