Flash: It Rarely Get’s More Obvious Than This 6-3-10
Posted By admin on June 3, 2010
Several indicators are pointing to a near term recovery from the recent market correction.
For example . . . The retail money has yanked money from equity mutual funds. The following chart from BofA Merrill Lynch shows they fled equities at a rate never seen before except at the panic points of Oct/Nov 2008 and March 2009 – the Great Recession market low.
Bespoke Investment Group (www.bespokeinvest.com) has pointed out that spikes in bearish investor sentiment coincide with market bottoms.
Of course the S&P 500 remains near an all time degree of undervaluation in relation with earnings growth and the 10 year Treasury rate.
Bottom Line: The data rarely presents a more obvious case for a rising stock market. The prospect for a very strong employment report tomorrow could be the icing on the cake.
Jeb B. Terry, Sr.
President
Aberdeen Investment Management, Inc.
jbtsr@aberdeeninvestment.com
Tel: 214-347-9114
Cell: 214-552-6708
Caution: It’s a risky world we live in. My opinions are based on information believed to be reliable but hey, I could be wrong. When investing, try to use good judgment and don’t hesitate to seek professional assistance. Remember to set limits and have a plan. . . Good Luck!
Comments
Leave a Reply
Please note: Comment moderation is currently enabled so there will be a delay between when you post your comment and when it shows up. Patience is a virtue; there is no need to re-submit your comment.