II advisor sentiment at 56.4%

[bgold]

I read that Investors Intelligence Advisor’s Sentiment survey shows 56.4% bulls versus 22.8% bears. apparently the 25th straight week of 50% bulls or greater, which has never happened in 40 year history.
All main indices are still well off their highs but advisors are more bullish than ever!!
Should one get worried?

 

[Trader333]

Ignore it as all attempts at predicting the future ultimately fail.


Paul

 

[Skimbleshanks]

A trader from the old days (in the days before charts and the Internet, if you can remember back that far!) told me that the best sentiment indicator was when the general public started getting interested in the stock market, that was the time to exit.

The last couple of weeks have been full of 'Is it time to go back into the stock market?' articles in the newspapers, so that suggests to me as if shorting territory is near.

If you remember back to the bull run of 2000, when the man in the street and housewives started talking about the stockmarket and how they were going to invest in the LastMinute.com flotation, that actually marked the time to get out of the market.

Just remember that the general public is always wrong, so if they're going in, you're going out (or shorting)!