More Data On Investor Sentiment
Speaking of sentiment surveys, a subscriber e-mailed me an anecdote from a very prominent sentiment-related Web site that is know for doing very good work.
It cited the lowrisk.com survey, which shows how investors feel about the Dow Jones Industrials over the next 30 days. The recent survey shows the most consistently low expectations for the DJIA in more than four years.
The respondents have expected the Dow to drop more than 3% on average for the past several weeks, which marks a level of skepticism that hasn't been seen from this group since late March 2003.
To me, this is just another brick in the wall of worry that the market continues to scale. I think the burden of proof is on the bears, as they continue to tell us that the market is perched on shaky ground. But for most investors, if you have been net short over the last several years, you have been wiped out.