Survey of Newsletter Editors Shows Bullish Sentiment at 3-Year High
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With stocks officially recovering all the loses since the unforgettable collapse of Lehman Brothers yesterday, a survey of investor sentiment issued by Investors Intelligence today is suggesting record levels of bulls.
The report, a weekly check of the sentiment of newsletter editors, shows a that about 58.8% of respondents are now bullish, a level not seen since 2007. This week's survey marks a rather sharp rise in the number of bulls, from 56.8% during the prior week. Notably, Investors Intelligence said that the bullish sentiment was as low as 29.4% at the end of August.
On the other side of the trade, the research group showed that outright bearish sentiment was about flat from the prior week at 20.6%. This indicator reached as high as 37.7% during the summer.
The Dow Jones Industrial Average has rallied nearly 5% during December; the S&P 500 is up almost 7% over the same span. The question is: will this Santa Claus rally be able to continue as we head into 2011, or is all this market-wide bullishness suggesting what a contrarian would consider a top?
The report, a weekly check of the sentiment of newsletter editors, shows a that about 58.8% of respondents are now bullish, a level not seen since 2007. This week's survey marks a rather sharp rise in the number of bulls, from 56.8% during the prior week. Notably, Investors Intelligence said that the bullish sentiment was as low as 29.4% at the end of August.
On the other side of the trade, the research group showed that outright bearish sentiment was about flat from the prior week at 20.6%. This indicator reached as high as 37.7% during the summer.
The Dow Jones Industrial Average has rallied nearly 5% during December; the S&P 500 is up almost 7% over the same span. The question is: will this Santa Claus rally be able to continue as we head into 2011, or is all this market-wide bullishness suggesting what a contrarian would consider a top?
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