Where are the bears?

  • Two indicators, the low short position of money managers in S&P 500 futures and the overwhelmingly bullish sentiment in the Investor Intelligence survey, suggest that there are “too many” bulls in the market.
  • This indicates that investors should be cautious and suggests that the market may be lower a year from now, even if the Federal Reserve lowers rates.
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Wall of Worry. Yet the bull market rages on.

Andy

Sure, or the market may be higher a year from now.

One lesson I learned many years ago was that my skill in trying to time markets is abysmal. Obviously, YMMV.

One of my favorite charts:

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This is why I love the power of indexing. You wind up way above average by doing nothing.

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