HomeArticlesServicePriceAbout

Market optimism is reaching a fever pitch that could be cause for concern at least over the near term, according to sentiment surveys this week. The Investors Intelligence Survey, which polls market newsletter authors, showed bullishness Wednesday at 60.9% and bears at just 14.5%, according to Peter Boockvar, chief investment officer at Bleakley Financial Group. Last week, the respective levels were 60% and 16%. Similarly, the American Association of Individual Investors Survey , which polls retail investors, indicated bullishness ahead by 45.9% to 21.9%. Bulls decreased nearly 6 percentage points though they remained at an elevated level. These surveys are useful primarily as contrarian indicators — when sentiment gets stretched in either direction, they serve as a cue for investors to move the other way. The results come with the S & P 500 up 8.3% year to date Speaking of the II Survey, Boockvar noted, “The Bear read is a 6 [year] low and now we have a 46.4 Bull/Bear spread which is a flashing red light in the short term.” “Bottom line, in the short term this is very much worth taking note where a market rest/consolidation/digestion/correction/pullback, etc… are now more possible,” he added.