Comment 

Joe Public cools off a bit

Dominic Picarda

Is the general public temporarily cooling towards stocks? This week’s AAII survey shows 42.8% bulls and 29.6% bears, a gap of 13.2%. A fortnight ago, the gap was more than double that. There are two ways of reading this. First, it is healthy that the reading is no longer at stretched extremes. Second, that cooling sentiment is a harbinger of a correction. At past short-term highs, punters have shown some predictive ability from time to time. I tend towards the first of these interpretations for now.

For now, I seek further longs in Dow and the S&P 500, but continue to ignore the Nasdaq 100.

Click here for PDF version.

Please note that the next edition of Wall Street Outlook will appear on Monday 11 February.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Register
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now