Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
A quite compelling chart from Ryan Detrick of Schaeffer’s Investment Research – here is the recent history of the S&P 500 when the investors intelligence survey shows a bear reading of 20% or less, as we currently sit. It doesn’t bode well for the market save for one instance in late fall 2009 (during QE1) when it stayed at that level for a while without a sizable correction . We’ll see if this is yet another historic measure that simply “does not matter” in a QEforever environment. Ironically this is the fourth year in a row it has hit that level in April.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
