Increasing Investor Optimism Puts Stock Market in Danger Zone

ByBrad Lamensdorf

Increasing Investor Optimism Puts Stock Market in Danger Zone.  We use investor stock market sentiment as historically important contrarian indicators to determine where the stock market is headed. The indicators have proved to be particularly accurate as they move closer to extreme bullish and bearish levels. This week’s Investor Intelligence survey of more than 100…

Q Ratio Indicates Stock Market Value Historically is Overpriced

ByBrad Lamensdorf

Q Ratio Indicates Stock Market Value Historically is Overpriced.  We use many indicators to analyze stock market value and future trends. One such popular indicator is the Q Ratio. It was developed by Nobel Laureate James Tobin to estimate the fair market value of the stock market for the long term. The ratio is the…

Companies are Raising Their Earnings Outlook: Be Careful!

ByBrad Lamensdorf

Companies are Raising Their Earnings Outlook: Be Careful!  Spurred by pandemic fears many companies earlier this year pulled  way back on their profit outlooks. In fact, many said  they couldn’t make any predictions at all. In recent weeks, however, with an increase in business openings and employment, these companies,  and the analysts who follow them,…

Investor Sentiment on Stock Market Remains in Caution Zone

ByBrad Lamensdorf

Investor Sentiment on Stock Market Remains in Caution Zone. We use investor sentiment as a contrarian indicator of where the market may be headed.  One of our favorite indicators is the Investor Intelligence poll of more than 100 stock market newsletters. The jump in Covid-19 cases sent the stock market lower last Friday. And that…

Investor Sentiment Has been Signaling Stock Market at Precarious Levels

ByBrad Lamensdorf

We use investor sentiment as a contrarian indicator of where the market is headed. So, Investors earlier this week were getting increasingly optimistic about the market despite clear signs that stocks were becoming very overpriced. The more stocks become overpriced, the more they are subject to falling down for any number of reasons, including unforeseen…