How quickly market Emotions have changed since August – Worry?

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It’s already priced into the markets … according to some experts!

By Arthur Chalekian GEPC [Elite Financial Partners]

ArtThe Markets UPDATE

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How quickly emotions have changed since August. Worry? Angst? It’s already priced into the markets, according to some experts.
 
Last week, Barron’s published the results of its Big Money Poll, a biannual survey of professional investors and money managers. A majority of those surveyed (55 percent) were bullish about U.S. markets’ prospects through June 2016, 29 percent were neutral, and 16 percent were bearish. That’s a big shift. Last spring, just 45 percent of those polled were bullish and nearly one-half were neutral. This time around, things are different:
 
“After a wild and crazy summer for U.S. stocks, marked by an 11 percent correction in August, Wall Street’s bulls are showing conviction again…the pros expect stocks to rise by as much as 7 percent through the middle of 2016, propelled by a growing economy and gains in corporate profit. The Big Money investors see fresh value in beaten-up energy stocks and financials, as well as dividend-paying blue chips. And, they don’t expect a likely interest-rate hike – when it comes – to break the bull’s stride for long.”
 
Investors who participated in the American Association of Individual Investors’ October 14 Sentiment Survey weren’t quite so optimistic. The survey showed just 34 percent of investors were bullish, 39 percent were neutral, and 27 percent were bearish. The bulls were down 3 percent from the previous week, and the bears gained a percent. Uncertainty seemed to be the name of the game, though, as the number of investors who held neutral opinions increased by 4 percent.
 
As an interesting side note, the professionals surveyed by Barron’s estimated the number of investors who weren’t sure where markets are headed was much larger – 76 percent!
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Assessment
If you’re a contrarian – an investor who does not subscribe to popular opinion – there are a lot of opinions to consider.
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Conclusion

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2 Responses

  1. Art,
    DOW: up 300 [+] points: After the market’s performance today – perfect ME-P timing!
    Lisa

    Like

  2. The “Hot” Market Today

    U.S. equities extended their recent rally on the heels of another round of rate cuts from the Chinese central bank and as some tech heavyweights posted stronger-than-expected earnings results. Treasuries finished lower in the wake of a favorable flash read on domestic manufacturing activity for October, while gold and crude oil prices were slightly lower and the U.S. dollar staged another solid advance.

    The Dow Jones Industrial Average (DJIA) increased 158 points (0.9%) to 17,647, the S&P 500 Index added 23 points (1.1%) to 2,075, and the Nasdaq Composite gained 112 points (2.3%) to 5,032. In moderately-heavy volume, 1.0 billion shares were traded on the NYSE and 2.2 billion shares changed hands on the Nasdaq. WTI crude oil declined $0.78 to $47.26 per barrel, wholesale gasoline was $0.01 lower at $1.30 per gallon, and the Bloomberg gold spot price declined by $1.34 to $1,164.70 per ounce.

    Elsewhere, the Dollar Index-a comparison of the U.S. dollar to six major world currencies-was 0.7% higher at 97.09. Markets were higher for the week, as the DJIA advanced 2.5%, the S&P 500 Index rose 2.1%, and the Nasdaq Composite Index gained 3.0%.

    Source: Schwab Center for Financial Research

    Like

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