Is The Public About To Get Torched In A Stock Market Plunge? The Answer Will Shock You

Friday, January 27, 2017
By Paul Martin

KingWorldNews.com
January 26, 2017

With the Dow breaking well above the psychological level of 20,000, is the public about to get torched in a stock market plunge? The answer will shock you.

Individuals are losing their faith
From Jason Goepfert at SentimenTrader: The latest readings from the weekly American Association of Individual Investors survey show a drop in bullish opinion among mostly self-directed investors. At the same time, “everyone else” remains steadfastly, and extremely, bullish. While individuals are looked down upon as the dumb money, that has not been an accurate statement, especially over the past decade…

Individual investors are leaving the party
According to the latest surveys, individual investors are becoming less enthused about stocks while “everyone else” remains extremely and steadfastly optimistic.

It’s commonly accepted that individuals, in the form of the AAII sentiment survey, are “dumb money”. That’s a dubious use of knee- jerk contrarianism as we’ve discussed many times in the past, but let’s just assume it’s true. We can see below that they have suddenly become much less bullish while “everyone else”, including newsletter writers, brokers, and futures traders, are displaying some of the most optimistic opinions in years (see chart below).

The Rest…HERE

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