Investors Business Daily has proven quite prescient over the course of the bear market. After keeping investors out of most of the 2008 losses they then told investors to jump back in near the March lows. They recently turned bearish again and though short-lived the call has proven prescient. Recent action has been slightly more encouraging according to IBD. Nonetheless, they have maintained their negative outlook on equity markets:
“Despite more losses Monday, a few factors about the session were encouraging.
First, the major indexes remained above Friday’s lows, which marked the deepest point so far in the current correction. So working on anattempted rally. Second, most of the day’s stock declines came in lower volume. The overall market’s loss in lower volume is generally the kind of action you’d like to see, bear market or bull. It indicates that institutional investors are playing a comparatively small role in the selling.”