Jan
7
Written by:
Arthur Daret
1/7/2009 5:38 PM
The most recent American Association of Individual Investors survey shows that 24% are bullish towards stocks and 55% are bearish. In addition, allocations for bonds and cash are at high levels which shows a high level of fear and uncertainty while stocks have a very low allocation as well, on-par with October 2002 levels. While this survey is more volatile than the Investors Intelligence Survey of newsletter writers (also showing pessimism towards stocks), it is useful, especially since it gives us a good feel for how investors overall are towards stocks.
As a contrarian investor, we want to see high levels of uncertainty hang around, especially if the market moves higher.
Arthur Daret
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