Investor Sentiment Continues to Warn Stock Market Investors to be Cautious

ByBrad Lamensdorf

We use investor sentiment as a contrarian indicator of where the stock market is headed because investors historically are wrong. Based on the latest sentiment indicators we continue to advise investors to remain cautious, particularly in these times of volatile, roller coaster markets in which new stock lows greatly outnumber new stock highs. We should…

Why Lowest Interest Rates in 5,000 Years are Worrisome, Even for Stock Market

ByBrad Lamensdorf

Why Lowest Interest Rates in 5,000 Years are Worrisome. The chart below from Bank of America Merrill Lynch contends interest rates are at their lowest going all the way back to 3,000 B.C. at the time of the pharaohs of the first dynasty of Egypt. Is that right? We do know for certain interest rates…

Major Increase in Selling by Insiders is Warning to Stock Market Investors to Watch Out

ByBrad Lamensdorf

Major Increase in Selling by Insiders is Warning to Stock Market Investors.  Company insiders have superior knowledge of the direction of future company growth. Therefore they have advanced knowledge of where their companies’ stock price is headed. Recent insider selling is on pace for a two-decade high (see chart below). That should be ringing alarm…

Low Bearish Stock Market Sentiment Means Investors Should Remain Cautious

ByBrad Lamensdorf

We use investor sentiment as a contrarian indicator of the direction of the stock market. And this week’s low bearish sentiment means investors should be cautious. The most recent Investor Intelligence Bears/Bulls poll reports bearish sentiment at a very low 17.2%.  Virtually unchanged from the previous report.  Bearish sentiment below 20% historically means the market…

Investor Sentiment Warning Stock Market is Entering Danger Zone

ByBrad Lamensdorf

Investor Sentiment Warning Stock Market is Entering Danger Zone.  We use investor sentiment as historically reliable contrarian indicators of the stock market’s direction. The Investors Intelligence Bulls/Bears poll of newsletter writers moved slightly higher this week in the danger zone with 55.3% of the writers bullish. This is up from 55.1% a week ago, and…