“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”, John Templeton
The swing toward bearish sentiment in the AAII survey last week and outsize focus on Sept. weakness by pundits gives #MysteryBroker some pause in his correction call. Says hard for stocks to "really break down" (more than a 10% correction) when AAII bears surge like this.— Michael Santoli (@michaelsantoli) September 20, 2021
We propose that the #mysterybroker doesn't understand how sentiment works. This is not a direct challenge as millions of investor and traders misunderstand sentiment. The September 16 Sentiment Review stated the following,
Sentiment towards stocks tends to be a misunderstood concept.
Please follow the link and read and watch the video review. Today is a good teaching day. Stocks (and sentiment) are rolling down the hill of comfort. The backdrop is a lot messier than when they're climbing the wall of worry.
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