Here’s another one from Barry Ritholtz’s blog, the Big Picture. Sentiment about as low on the Consumer Sentiment Chart as it has been in about 28 years!
Chart of the Day: Consumer Sentiment Hits 28 Year Lows
Excerpt: "If you were a pure contrarian, you would think that sentiment readings were a good — albeit historically early — buying signal. The last time we were this negative was in 1980, and we were pretty close in 1990-91.
I take that as signal to look for what can be described as a low risk, high return buying entry point some time over the next two years…"
"However, if you are looking for a 1980 type of a start of the new Bull Market, sentiment is suggesting we could see one in that time frame."
Yes, that is a long-term buy signal but, well, it may take a couple years to play out.
