Last Thursdays reading of the AAII poll showed the lowest bullish reading on history. Just 7 days later the reading is up 46% to 27.6 – still a low reading, but an enormous one week move.
Psychology is perhaps the most important thing to understand when investing in any market. This is still a very low historical reading, but as more and more investors move onto our side of the ship we will slowly be moving to a more neutral position.
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.