Oh No! Everyone is Bullish
Here is Yardeni’s bull/bear ratio. You can see most investors are now bullish.
But wait, it gets worse.
CNN’s Fear & Greed Index is firmly in the greed territory.
AAII Investor Sentiment Survey showed that 46% of investors think the market is heading in a bullish direction in the next six months. The historical average is 37.5%.
And lastly, the Charles Schwab Trader Sentiment Survey reported that 53% of respondents held a bullish outlook on U.S. stocks. This was a big jump from 32% in the fourth quarter of 2023.
This is bad news. A good contrarian investor will tell you that when everyone is bullish there is no one left to buy. The markets have had a nice run since the bottom in November. They are due for a breather.
All the best,
Christian DeHaemer
Outsider Club
