‘Bearish’ Stock Forecasts Lowest in Six Months, Survey Says
The following are results from Investors Intelligence’s analysis of investment newsletters for Feb. 8 through yesterday. The New Rochelle, New York-based firm determines the proportion of writers who are bullish and bearish on U.S. stocks, as well as the percentage who anticipate a correction, or 10 percent decline, in the market.
Technical analysts, who try to predict stock moves based on price and trading patterns, track investor sentiment as a contrarian indicator. They interpret greater optimism as bearish and increased pessimism as bullish.
This Week Last Week Comments Bullish* 54.8% 52.1% Highest since May Bearish** 25.8% 28.7% Lowest since August Correction*** 19.4% 19.2% First gain in 3 weeks * Bullish reading fell to 22.2 percent in October 2008, the lowest since November 1988. ** Bearish reading fell to 15.6 percent in December 2009, the lowest since April 1987. Bearish reading rose to 54.4 percent in October 2008, the highest since December 1994. *** Correction reading rose to 39.8 percent in February 2010, the highest since September 1983.
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