Investor Sentiment Indicates Stock Market Remains Precarious

ByBrad Lamensdorf

Investor Sentiment Indicates Stock Market Remains Precarious. We use investor sentiment as a contrarian indicator of market direction because the average investor historically is usually wrong.. Although the short-term CNN Fear/Greed index is now registering extreme fear on the part of investors,  we believe that as a contrarian indicator that this is not yet a…

Confidence and Money Is a Dangerous Combination

ByBrad Lamensdorf

As previously published in The Rich Investor: By John Del Vecchio Confidence. It’s an important factor in the markets. And in politics. The markets can move wildly on changes in confidence. They can become a self-fulfilling prophecy. Markets are a confidence game. Sometimes the markets are simply a con. It’s not that easy to accumulate…

Investors’ Extremely Low Cash Balances Raise Red Flags for Stock Market

ByBrad Lamensdorf

Investors’ Extremely Low Cash Balances Raise Red Flags for Stock Market.  SentimenTrader points out that average cash balances across a wide swath of investor types have fallen to  record or near-record low of less than 7%. That’s the second lowest in 40 years. In fact average cash balances among mutual funds is at a record…

Soaring Bullish Sentiment  is Warning Stock Market Could Be In For Rough Times

ByBrad Lamensdorf

Soaring Bullish Sentiment is Warning Stock Market Could Be In For Rough Times. We use investor sentiment as a contrarian indicator of where the market is headed because the average investor historically is wrong. So what is worrisome is that this week’s strong stock market gains have driven up investor exuberance to the highest bullish…