Photo: RBC Capital Markets
There isn’t a clear consensus regarding sentiment towards the stock markets. Some point to metrics that argue sentiment is extremely bearish, which is a bullish contrarian indicator.
Others will look at the stock market and argue that investors ignoring weak economic fundamentals have become complacent, which may be a bearish contrarian indicator.
Myles Zyblock, Chief Institutional Strategist for RBC Capital Markets recently reviewed 17 major sentiment and market-based economic indicators in his effort “to gauge the investment climate.”
Thanks to Myles Zyblock and RBC Capital Markets for giving us permission to feature these charts.
Bearish: The Put/Call ratio is historically low, which means very few people are worried about prices falling
Neutral: The Philly Fed's Anxious index shows that professional forecasters see a 17% chance of GDP contraction
Neutral: Positive economic surprises have been improving, but the index is currently sending a neutral signal
Neutral: There is roughly the same number of investors who are bullish on stocks as there are who are bearish
Neutral: Earnings revisions have been net-negative, but it's not sending a definitive buy or sell signal
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.