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Chart of the Week: S&P500 versus Sentiment (1988 to present)

Posted By Barry Ritholtz On April 29, 2004 @ 4:22 pm In Finance | Comments Disabled

Investment advisors have remained extremely optimistic, despite the less than stellar market conditions since the market peaked late January. This works as a contrary indicator, because people become more bullish after buying stock – call it the pride of ownership).

S&P500 versus Sentiment (1988 to present)
spx_versus_optimism
Source: Chart of the Day [1]

One can disregard overly optimistic sentiment indicators if the tape and internals are strong. They have been choppy lately, and not providing very much guidance.

Random Items:
Might the Fed Rate Increases Stop at Only 2.5%? [2]
NO WIRES, NO RULES [3]
Giving It Away (for Fun and Profit) [4]
Work safety a growing concern [5]
Smart Fraction Theory of IQ and the Wealth of Nations [6]
Poll: Growing Doubts On Iraq [7]

Quote of the Day:
“Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable.” ~ Sydney J. Harris [8] (1917-1986)


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/04/chart-of-the-week-sp500-versus-sentiment-1988-to-present/

URLs in this post:

[1] Chart of the Day: https://www.chartoftheday.com/

[2] Might the Fed Rate Increases Stop at Only 2.5%?: http://quote.bloomberg.com/apps/news?pid=10000039&cid=berry&sid=aGcMfFbiMbNs

[3] NO WIRES, NO RULES: http://www.businessweek.com/magazine/content/04_17/b3880601.htm

[4] Giving It Away (for Fun and Profit): http://www.business2.com/b2/web/articles/0,17863,608619,00.html?cnn=yes

[5] Work safety a growing concern : http://money.cnn.com/2004/04/29/news/economy/job_satisfaction_survey/index.htm

[6] Smart Fraction Theory of IQ and the Wealth of Nations : http://www.lagriffedulion.f2s.com/sft.htm

[7] Poll: Growing Doubts On Iraq: http://www.cbsnews.com/stories/2004/04/28/opinion/polls/main614605.shtml

[8] Sydney J. Harris: http://www.amazon.com/exec/obidos/tg/detail/-/0913592218/ref=ase_thebigpictu09-20/102-4529470-0078540?v=glance&s=books

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