Stock Market Historic Optimism – What Does it Mean?
Stock Markets 2014Jan 02, 2014 – 09:18 PM GMT
How do you know when the market is getting ready
for a change? This quote from Bob Prechter’s best-selling book, Conquer
the Crash, looks at investor psychology at extremes in the markets:
The engine of high stock market valuation is widely shared optimism.
The greater the degree of the advance that is ending, the greater the
optimism at its peak. Optimism also tends to remain strong in the early
stages of a bear market …
Today, how optimistic
are market participants? Bob dedicated an entire issue of his Elliott
Wave Theorist market letter to looking at the level of optimism in
the markets today. These two charts, excerpted from that letter, show
just a piece of the story. Learn how you can get the entire issue, with
15 eye-opening charts, for free.
* * * * *
“Charts tell the truth. Let’s look at some charts …
shows that in the second-to-last week of October, the public poured more
money into various U.S. stock funds than at any time in at least seven
years, which includes the 2007 stock market top.
“All this stock buying has created a lopsided investment ratio among fund
sectors. As shown in Figure 10, the percentage of money in Rydex’s conservative
money-market funds as opposed to speculative stock market funds is the
lowest since 2001, which is just after the all-time high in the real value
These are just two of the 15 charts that you can see for free. For a limited
time, Elliott Wave International is giving away a full issue of Robert
Prechter’s Elliott Wave Theorist. In this 10-page issue, you
can see all 15 charts and decide for yourself whether the market is at
an optimistic extreme. See below for more details.
See All 15 Charts from Bob Prechter’s 10-Page Market Letter — FREE
Is the U.S. stock market at an optimistic extreme? See for yourself with this limited-time special offer.
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.
© 2005-2013 http://www.MarketOracle.co.uk – The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
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