
Provided by the Business Insider, August 31, 2010:
A Thomson Reuters analysis of the 30 largest fundamental hedge funds has found that these major players slashed their risk exposure to the stock market in the second quarter, by opting for defensive stocks such as dividend-payers or utilities, or by shifting away from cyclical industries such as materials and energy.
"You're not in that investment mindset of a few years ago any more, and a lot of risk has been taken off the table already," said Steve Goldman, senior market strategist at Weeden & Co in Greenwich, Connecticut. "The consumer is in dire straits, the economy's resilience has been disappointing, and everybody's bracing for it."
So major hedge funds aren't bullish.
U.S. retail investors have also been largely sitting out the stock market since the crisis, according to the Financial Times. So retail investors aren't bullish.
Barry Ritholtz at The Big Picture also notes that even Wall Street analysts have 'turned excessively bearish' relative to their usual song and dance. Fewer than 29% of stock recommendations worldwide are 'Buys' according to Bloomberg, which is the lowest level since at least 1997. Even analysts aren't bullish.
Meanwhile, U.S. equity mutual funds have experienced a multi-year outflow of investor capital based on tracking data from the Investment Company Institute, as we've discussed many times previously. Your average 401k'ers, who represent the largest wall of money out there, hasn't been bullish on stocks for ages... and instead has been pouring money into bond funds. Equity mutual funds have been a lost cause for ages.
So, really, who is bullish on stocks right now? Nobody is...
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Excuse me, but I'm bullish and have been since March 2009. Oh, and dare I say so is Warren Buffet!
I think that's precisely why the markets tend to go up from here - that nobody is bullish!
I hope you have to cover your shorts and clean the mess in your pants. Pity the Fool.
Want home prices to rise....everyone stop selling. Want economy to rise...vote republican..lets face it, dem's failed. Want a job...learn excel and word.
Wow - some folks are 'bullish' enough this day - DOW +225
Obama is destroying the economy. He doesn't care - his goal is to spend, get his entitlements in place and push inflation to 20% to achieve his beloved "income redistribution".
His secondary objective, of course, is to obtain a permanent democratic majority by making 25 million illegal aliens citizens.
I continue to be very Bullish and invite everyone to join me. "WE THE PEOPLE" are who make up these United States not politicians, not presidents, not bankers, not wall street. I am proud to be an American and part of the society that we all make up. We have gone in the wrong direction in the areas of government leadership(both rep/dem), wrong direction of immigration, wrong direction in religion, and raised generations of entitlements. But I truly believe everyone of us wants things to change and for the better not the worse. I believe in America and everyone of us who get up every morning and go to work to make things better. "WE THE PEOPLE ARE AMERICA AND WE THE PEOPLE CAN FIX WHATS WRONG!!!! Proud to be part of this society.
This is a BIG signal to BUY. The fact that NOBODY is bullish is a perfect indicator to go the other way. BE BULLISH, NOW.
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