Tag Archives: AAII Sentiment Survey

What investors are actually doing with their money – acting out of fear or greed – is a better predictor of future stock market returns than even Buffett’s favorite, and highly touted, total market capitalization-to-GNP valuation measure. How do we use this information as a contrary indicator? How do we put it into practice? Read on.

We are continuing to see ongoing pessimism among individual investors about the short-term direction of stock prices [but if you are a contrarian you should bet on a continued rise in stocks despite the continued sense of unease. Let's take a look at a few charts that tell the story.] Words: 510