By John Del Vecchio and Brad Lamensdorf
One of the key drivers of the stock market in recent years has been share buybacks.
Recently, companies have been in a blackout period and that coincided with a dismal start to 2022.
As the chart below shows, the number of black out dates is fading rapidly.
The chart was published in Mid-January and we are now more than three quarters through the blackout period.
As companies come out of the dark and buy back stock, it could be supportive of share prices.
The black out period is fading at a time of extreme pessimism in the market.
There are simply too many bears right here, right now.
As the chart below shows, courtesy of RENMAC, when the level of AAII Us Investor Sentiment readings are this bearish, it’s time to be greedy.
If corporate management becomes greedy, history shows there’s substantial upside from here.
To learn more about how these indicators can help manage risk in your portfolio, book a call with Brad.
DISCLOSURE: LAMENSDORF MARKET TIMING REPORT
Lamensdorf Market Timing Report is a publication intended to give analytical research to the investment community. Lamensdorf Market Timing Report is not rendering investment advice based on investment portfolios and is not registered as an investment advisor in any jurisdiction. Information included in this report is derived from many sources believed to be reliable but no representation is made that it is accurate or complete, or that errors, if discovered, will be corrected. The authors of this report have not audited the financial statements of the companies discussed and do not represent that they are serving as independent public accountants with respect to them. They have not audited the statements and therefore do not express an opinion on them. The authors have also not conducted a thorough review of the financial statements as defined by standards established by the AICPA.
This report is not intended, and shall not constitute, and nothing herein should be construed as, an offer to sell or a solicitation of an offer to buy any securities referred to in this report, or a “buy” or “sell” recommendation. Rather, this research is intended to identify issues portfolio managers should be aware of for them to assess their own opinion of positive or negative potential. The LMTR newsletter is NOT affiliated with any ETF’s. Active Alts is affiliated with Lamensdorf Market Timing Report. While LMTR uses charts from SentimenTrader, they do not have a financial arrangement with SentimenTrader Past performance is not indicative of future results.