BOB PRECHTER WARNS: Investors, Futures Traders, Mutual Funds, Hedge Funds And Economists Are All At Record Bullishness

robert prechter

The notoriously bearish market guru Bob Prechter makes one unassailable point in his latest newsletter (via Mish).

Bullishness is getting extreme:

Individual investors (AAII poll)—most bullish in six years

Newsletter advisors (I.I. poll 20-week average)—most bullish in seven years

Futures traders (trade-futures.com poll)—most bullish in four years

Mutual fund managers (% cash)—most bullish ever

Hedge fund managers (BoAML survey)—most bullish ever

Economists (news-org polls)—unanimously bullish

Top global strategists (three national year-ahead panels)—unanimously bullish

Even most ‘bears’ on the economy are bullish on stocks because of inflation!”

While bullishness is good, extreme bullishness suggests the formation of a bubble. Prechter insists we’re in the rally phase of a secular bear market, and the next step is a major crash.

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