“It is a bad sign for the market when all the bears give up. If no-one is left to be converted, it usually means no-one is left to buy.’ – Pater Tenebrarum
That quote got me thinking about the dearth of bearish views that are currently prevalent in the market. The chart below shows the monthly level of bearish outlooks according to the Investors Intelligence survey.
The extraordinarily low level of “bearish” outlooks combined with extreme levels of complacency within the financial markets has historically been a “poor cocktail” for future investment success.
As Michael Sincere recently stated rather sarcastically:
This post was published at StreetTalkLive on 12 September 2014.