Friday, September 26, 2008

Stock Market Sentiment On the Wane

A tip of the hat to Decision Point for this nice graphic of investor sentiment, as measured by the American Association of Individual Investors. (Here's the link to the free trial information; it ends on October 5th). Note how the proportion of bulls to bears (bottom pane) has steadily declined from 2004 to the present. That ratio is particularly low at present, as you can see by clicking on the chart and observing the values below the green line. Given the wrangling and finger-pointing in Washington, it is not at all clear that any rescue plan will be sufficient to rescue investor sentiment.

PS - Looking for weekend reading? Here are some of my articles in PDF.