Chart Of The Day


Like small investors (see here), advisors are largely bullish.  It appears as though the fears of recession have now turned into a near unanimous optimism.  The latest Investor’s Intelligence survey showed a slight decrease in bulls to 50%.  This is still off the highs seen last April when equities peaked, but is still a historically high reading.  II details this week’s report:

“The bulls decreased slightly to 50.0%, after reaching 51.1% a week ago. That was the most bulls since late April 2011 and what you would expect following the market’s 15% or so rally from early Oct, when the bulls were just 34.4%. The bulls remain below their April high at 57.3%, when many indexes achieved their yearly peaks. We are still not up to the 55% readings which are dangerous; bull market tops often include the bulls as high as 60%. The rising number of bulls over the last three months coincided with money moving into stocks. We are now getting close to readings where bullish sentiment is a worry. “

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