‘Yer jest plain contrary’. So I’ve been told a time or two. And imagine, I thought it was a compliment! I’ve learned it’s perhaps not-so-good when your wife tells you this, but it an entirely different story when you apply this contrary behavior and outlook to thinking about capital markets.
BofA/Merrill Lynch recently published a chart showing where we are in the eternal cycle of the Bull and Bear. The reading of 52.9 in August still puts us in bearish territory as far as sentiment is concerned. That’s often a good thing as can be seen in the chart above. MarketWatch describes the current trend and a little more of the history in their recent post.