I have shown this graphic repeatedly in the past, but given today’s rally, we might as well trot it out one more time:
The Sell Side Indicator — Merrill’s measure of Wall Street’s bullishness on stocks — rose by 2.8pt in January to 49.8. This is now an eight month high and the fifth time in six months that the indicator has improved after hitting all-time lows in July at 43.9.
The S&P 500 has risen 10% in the six months since sentiment bottomed. Historical returns are typically up 24% and 46% in the 12 and 24 months that follow such as bottom. following.
Bank of America/ Merrill Lynch
Sell Side Indicator, February 1, 2013
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.