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Be Not Afraid, Pessimism Is Overdone: Jeff Kleintop

Fin - Breakout - US

Amidst cries of "sell in May," strife in Europe, doubts over China, mushy economic data, a collapse in commodities, unease over QE2 ending and even a "world is ending" prophecy, Jeff Kleintop is calmer than a Dead Sea low tide.

"They're running out the door," the chief market strategist at LPL Financial says in reference to $2 billion of individual investor stock fund redemptions over the past two weeks.

His confidence is rooted not only in that contrarian indicator but also in the plunge in bullish sentiment as measured by the latest AAII survey.

"As we pass judgment on the recent market and economic performance, we find the evidence to be much less than apocalyptic," he says in his most recent note, Judgment Day. "The most important conditions are much better now than a year ago and, as investor sentiment rebounds, we expect commodity prices to rise after the sharp pullback over the past several weeks."

Kleintop says that, if you add in the fact that 10 of the past 11 economic indicators have been negative surprises, it's no wonder pessimism is ruling the day.

Put it all together and you've got yourself a guy who is not only ready to dive back into commodities but back into silver.

Really.

Say hello to Mr. Zag, all you Zigs out there. A bull is in the house.

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