Fewer people are satisfied with US stocks. Maybe it’s a signal to buy?
The unequal battle investors
and analysts due to concerns about the state of
economy and because of the potential losses
revenue companies made common shares
less attractive. terrible
reports on employment in March – the worst
figures from the end of 2013 – only
complicated the situation in the stock
And it is not surprising
that the proportion of optimists in the stock market
It is rapidly declining.
Only half of the authors of the financial
Intelligence gives bullish forecasts. In February, for comparison,
optimistic forecasts were more
60%. Does this mean that now is the time
get rid of the shares? Not necessary.
In fact, many
Experienced investors are closely watching
of market sentiment after the reports
and their decisions show chat
the opposite action. Simply put,
reduction of a bullish trend for investors
It may well affect promotions. AT
After all, the best time to buy,
when fear is pushing the price down. And vice versa.
"If everything grows, you
We should be concerned about. History
proved that if you collect all on one
side of the boat, the boat can simply
overturn"- said Art Hogan,
chief market strategist at
Investors Intelligence sentiment now
while showing the lowest level of
from the end of January. This is when the action hangs
together, as it were at the bottom, falling in advance,
then to eventually unite
and show fresh highs. Whereas
weekly reports may be slightly
trend speaks for itself. Percent
“Bullish” investors declined the past three weeks. "This reduction
It means that there is still room for a large
market returns"- writes Dzhon Grey
from Investors Intelligence in the latest report.
“Bulls” is still
more than the “bears”, which make up
only 14.2% of newsletter writers. This figure
It has not changed for a period of eight weeks.
But people who have joined the bullish
moods, fewer. Percent
people who rely on correction
– price reduction of 10% – increased to 35.4% from
29.3% in mid-March.
Why are people scared of?
There is reason less “like” action.
Firstly, the economy stumbled much
more than in the first quarter than expected.
And the weather was not yet clear to blame
it or not. Second, super-strong
dollar and lower oil prices create
serious problems for some
companies. For the first time in several years
Investors are preparing for a direct reduction
income. Third, US stocks
just do not look cheap, especially
given the problems in the markets.
So what do you do now?
Hogan says that he
still he loves US stocks
– and reduce the number of bullish investors
just another reason why he
It does. He pointed out that the combination of
strong dollar with cheap oil –
This is a great victory for the majority
Americans, even if it causes
Only short-term profits. "For
the average investor, US stocks
They are now very attractive
asset"- Hogan said.
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