Wall St. Feeling Better but Far from Bullish
Posted By Barry Ritholtz On February 1, 2013 @ 2:00 pm In Analysts,Contrary Indicators,Investing,Psychology | Comments Disabled
[1]
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.
Source:
Bank of America/ Merrill Lynch
Sell Side Indicator, February 1, 2013
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2013/02/wall-st-feeling-better-but-far-from-bullish/
URLs in this post:
[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/02/sell-side-consensus.jpg
Click here to print.