Source: Bianco Research
 

As the chart above shows, the percentage of bears (in red) has not risen. It remains at the same level it was when bullish sentiment peaked.

As noted here, there is widespread expectations that the Fed will eventually intervene if the markets drop to far.

The Bernanke Put is alive and well . . .

Category: Markets, Psychology, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “The Wall of Worry?”

  1. TLH says:

    Is correction bearish bias?

  2. VennData says:

    Billionaires List

    http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/06/24/the-billionaires-list/

    “…If a country is generating too many billionaires relative to the size of its economy, this concentration of wealth can lead to stagnation.Take China. A healthy economy produces great wealth in a competitive environment, and by that measure China, for example, is still strikingly healthy. Turnover among its top 10 billionaires is high, and few have ever amassed a fortune of more than $10 billion; indeed there is reason to believe Beijing is enforcing an unwritten rule that caps total wealth. In the last fifteen years China has generated much more overall wealth than any other country, but its richest man is now worth about $10 billion, far less than the billionaires in much smaller economies, including India, Mexico, Russia and Nigeria.
    It is also telling that two men who in the last decade held the title of richest man in China are now in jail on corruption charges of one kind or another…”

    So, if China is CAPPING wealth and Jailing the top guys… how on earth are their businessmen incentivized to invest? We’re not talking about raising Chinese income tax rates up to the Clinton rates… This is just another data point that contradicts the GOP.

  3. hawleyl says:

    Is there a bear market analogy to the “wall of worry”? I would propose a bear market slides down a slippery slope of hope.

    ~~~

    BR: You are not the first to coin that phrase!

  4. hudson62 says:

    Lest we forget… The “Greenspan Put” predated the carnage of 2000 and 2008.

  5. It is refreshing this week to see Congress take a break from electioneering to work on Sequester, Bush-era tax cuts & the Debt Ceiling . It is no doubt triggered by the reality of sub 1% GDP forecasts for Q3 (down from 2.7% in chart). Commerce & consumers alike had shifted into neutral. It is improbable they can move the needle much on the last quarter prior to the Election, but positive action could improve Q4 and the October unemployment announcement.

    Even a short postponement of Sequester will probably generate a ratings downgrade (Egan) on USA treasuries.

    TRI chart: http://trendlines.ca/free/economics/RecessionIndicatorUSA/USA-TRI.htm

  6. [...] on the Bernanke put. Do these things ever expire? I remember a Greenspan [...]