Friday, December 27, 2013

Bubble Sentiment

Sitting with the thinker
Trying to work it out
It's a traffic jam of the brain
Makes you want to scream and shout
--Sly Fox

As US equity indexes mark more new highs, sentiment predictably gets more lopsided. The Investors Intelligence newsletter survey captures the optimism:

In fact, the difference between II bulls and bears has never been higher:

The log periodic bubble model appears to be playing to completion in a buying panic.

Risk is high.

position in SPX

1 comment:

dgeorge12358 said...

Money, again, has often been a cause of the delusion of the multitudes. Sober nations have all at once become desperate gamblers, and risked almost their existence upon the turn of a piece of paper.
~Charles Mackay