Stock Market Pundits Are Finally Panicking

The investing newsletter pundits have become extremely bearish, as visualized by the chart from Bespoke Investment Group below.

Bespoke:

Given the recent market weakness, it’s not surprising that bearish sentiment among newsletter writers is near a 52-week high. According to the weekly survey from Investors Intelligence, bearish sentiment rose to 33.3% in the latest week which is the highest level since July 2009. Although bearish sentiment is on the increase, a plurality of advisors still consider themselves bullish (41.1%).

So the group is very bearish relative to their general bias towards bullishness. Note how even during the worst of the crisis, it seems only 55% were bearish. That’s the peak for this newsletter indicator, from the depths of a crisis, and we’re just over halfway there.

Chart

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