• 267 days Could Crypto Overtake Traditional Investment?
  • 272 days Americans Still Quitting Jobs At Record Pace
  • 274 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 277 days Is The Dollar Too Strong?
  • 277 days Big Tech Disappoints Investors on Earnings Calls
  • 278 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 280 days China Is Quietly Trying To Distance Itself From Russia
  • 280 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 284 days Crypto Investors Won Big In 2021
  • 284 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 285 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 287 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 288 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 291 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 292 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 292 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 294 days Are NFTs About To Take Over Gaming?
  • 295 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 298 days What’s Causing Inflation In The United States?
  • 299 days Intel Joins Russian Exodus as Chip Shortage Digs In
Elliott Wave International

Elliott Wave International

Elliott Wave International

Elliott Wave International (EWI) is the world's largest market forecasting firm. EWI's 20-plus analysts provide around-the-clock forecasts of every major market in the world via…

Contact Author

  1. Home
  2. Markets
  3. Other

Historic Optimism in the Stock Market - What Does it Mean?

How do you know when the market is getting ready for a change? This quote from Bob Prechter's best-selling book, Conquer the Crash, looks at investor psychology at extremes in the markets:

The engine of high stock market valuation is widely shared optimism. The greater the degree of the advance that is ending, the greater the optimism at its peak. Optimism also tends to remain strong in the early stages of a bear market ...

Today, how optimistic are market participants? Bob dedicated an entire issue of his Elliott Wave Theorist market letter to looking at the level of optimism in the markets today. These two charts, excerpted from that letter, show just a piece of the story. Learn how you can get the entire issue, with 15 eye-opening charts, for free.


"Charts tell the truth. Let's look at some charts ...

"Figure 9 shows that in the second-to-last week of October, the public poured more money into various U.S. stock funds than at any time in at least seven years, which includes the 2007 stock market top.

Fund Cash/Stocks Ratio

"All this stock buying has created a lopsided investment ratio among fund sectors. As shown in Figure 10, the percentage of money in Rydex's conservative money-market funds as opposed to speculative stock market funds is the lowest since 2001, which is just after the all-time high in the real value for stocks."

The Public Plunges Into Stocks

These are just two of the 15 charts that you can see for free. For a limited time, Elliott Wave International is giving away a full issue of Robert Prechter's Elliott Wave Theorist. In this 10-page issue, you can see all 15 charts and decide for yourself whether the market is at an optimistic extreme. See below for more details.

 


See All 15 Charts from Bob Prechter's 10-Page Market Letter -- FREE

Is the U.S. stock market at an optimistic extreme? See for yourself with this limited-time special offer.

Download your free copy of Bob Prechter's November Elliott Wave Theorist now >>

 

Back to homepage

Leave a comment

Leave a comment