Professional investors are getting really confident that the stock market will keep moving higher — maybe a little too confident.
A popular gauge of investor sentiment, in fact, is flashing a signal that the latest runup in equity prices to fresh record highs is getting overheated. The Investors Intelligence survey, which measures the attitudes of more than 100 investor newsletter authors, is showing bullishness at 56.2 percent of respondents, which is indicative of an unusually high level of optimism.That reading "is considered the danger level," said John Gray, co-editor of the Investors Intelligence newsletter.
Gray notes that when the bullish level exceeds 55 percent, it has been consistent with a market pullback. It happened in February 2015 and then in April of the same year, when the market was on a ride that eventually would take the S&P 500 down about 15 percent in 12 months' time.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.