After ripping higher last year, US stocks continued that form in the first session of 2018. The Nasdaq Composite and S&P 500 both closed at record highs, adding 1.5% and 0.83% respectively. This chart may help to explain why – Wall Street analysts haven’t been this bullish towards stocks in […]
Fund managers think that stocks are overvalued with positioning disproportionately long, creating the risk of a rush for the exits at some point in the future. However, despite those views, they continue to double down on stocks. That’s the brief synopsis of the latest Fund Manager Survey from Bank of […]
Bank of America-Merrill Lynch (BAML) released its latest Global Fund Manager Survey (FMS) for June this week, a report that captures the views of over 200 individuals on what’s happening in markets. They carry some clout, too, managing $US525 billion in funds, meaning it’s a more than useful report for […]
The Economist magazine is known for many things, including thought-provoking covers on what’s happening in the global economy, markets and politics. Aside from creating debate, those covers, according to Greg Marks and Brent Donnelly, analysts at Citibank, are also useful from another perspective: they’re often a contrarian indicator, pointing to […]
Late last year, just over a month before prices bottomed out, we noted investors had reached peak pessimism when it came to the outlook for the crude oil price. There was nothing scientific, fundamental or technical about the view; it was formed by the deluge of bearish research notes arriving […]
The S&P 500 — the benchmark US stock index — ripped higher overnight, closing at 2,084.39, an increase of 1.25%. In percentage terms it was the largest increase since March 11 — not an insignificant rise after weeks of selling. While a surge in commodity prices, led by crude oil, […]
Psychologically, it's easier to...
When you see the value of your investments drop...
In investing lore, there exists the fabled...
Veteran stock market strategist Richard...
Between the Greek debt crisis, Chinese stock...
Bet on Food.
And El Niño.
In a...
Contrary to market lore.
BofA’s proprietary measure of investor sentiment is clocking in at extreme levels.
[credit provider=”Barrons” url=”http://online.barrons.com/this_week?mod=BOL_Nav_MAG_other”] The covers of widely circulated newspapers and business news publications are famously known for being contrarian indicators of what will actually happen in the economy and financial markets. The most notorious case of this was BusinessWeek’s 1971 cover story “The Death of Equities.” More recently, the Financial […]
Wall Street’s strategists are more bearish on stocks right now than they were in the wake of the tech bubble collapse or even in the aftermath of the global financial crisis of 2008.
[credit provider=”Bloomberg” url=”http://www.businessweek.com/videos/2012-04-17/new-investors-spur-apple-stock-sale-damodaran-says”] Aswath Damodaran has an interesting blog post up on contrarian investing, and how investors can intelligently evaluate such opportunities.Damodaran divides contrarian strategies into four broad categories:
