• 751 days Will The ECB Continue To Hike Rates?
  • 752 days Forbes: Aramco Remains Largest Company In The Middle East
  • 753 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,153 days Could Crypto Overtake Traditional Investment?
  • 1,158 days Americans Still Quitting Jobs At Record Pace
  • 1,160 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,163 days Is The Dollar Too Strong?
  • 1,163 days Big Tech Disappoints Investors on Earnings Calls
  • 1,164 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,166 days China Is Quietly Trying To Distance Itself From Russia
  • 1,166 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,170 days Crypto Investors Won Big In 2021
  • 1,170 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,171 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,173 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,174 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,177 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,178 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,178 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,180 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

The Sentimeter: 6.16.13

Equity market investor sentiment is now neutral. Three week's ago it was extremely optimistic and just like that with everyone all in, the market struggles. The indicator is unwinding, which is suggestive of lower prices. Unfortunately, prior and recent instances have led to QE3 and QE4 -both interventions having short circuited the sell offs. I believe this is not healthy bull market action, and at some point, these distortions will be corrected.

See the Equity Market Investor Sentimeter below, which is our most comprehensive sentiment indicator. This indicator is constructed from 10 different data series including opinion data (i.e., how do you feel about the market?) as well as money flow data (i.e., where is the money going?). This is the current state of equity market investor sentiment.

Investors continue to put a great deal of credence into the notion that the Federal Reserve has backstopped the market. Three week's ago we had parabolic readings in the indicators and this would suggest that this belief is strong. We shall see what Ben Bernanke has in store for the markets. Why Bernanke certainly isn't relevant one can certainly question how much relevance his policies actually have. The last two recessions coincided with significant loosening of the monetary reigns yet the markets (i.e., SP500) dropped about 35% in the 2001 recession and 55% in the 2008 recession. The fall in the indicator from last week's "optimistic" reading to this week's "neutral" suggests that investors are losing their patience with the man behind the curtain.

The Sentimenter - Neutral Sentiment

 


Want more TacticalBeta? See our pricing chart and upgrade today.

TacticalBeta offers a FREE Newsletter:

 

Back to homepage

Leave a comment

Leave a comment