As the most hated rally in the history of rallies continues, the small investor remains incredibly pessimistic about the sustainability of any recovery. Is this the contrarian of all contrarian signs or is this simply another case of the public seeing thru a stimulus based rally for what it really is? David Rosenberg at Gluskin Sheff elaborates on the record lows in sentiment:
As Chart 1 illustrates, a record-low 6.2% of Americans buy into the recovery story and it looks as if this picture is already in the process of double-dipping. Rarely, if ever, has the perception gap between Wall Street and Main Street been so wide as it is today.
Source: Gluskin Sheff
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.
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