Investors have officially become convinced that stocks do not decline. Sentiment readings are literally off the charts this week with the AAII small investor bullish sentiment survey surging 9% to 57.6%. That’s the highest reading since January 2007. Charles Rotblut of AAII is reporting that 60% would be a two standard deviation event.
This week’s Investor’s Intelligence survey also saw a large increase in bullishness to 48.6%. This is the highest reading since May 6th, but is also 8 points shy of the high recorded on April 28th.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.