The “dumb” money (ie. that of individual investors) is back in the stock market — and that means the market likely is at its peak, according to the Wall Street Journal. The evidence: rising investment in ETFs and equity mutual funds, as tracked by EPFR Global. The American Association of Individual Investors (AAII) also found a striking growth in bullish sentiment when polling its members last week (graphic courtesy of the WSJ): Continue reading
Guest commentary by Michael A. Gayed.
Is it May all over again?
Its easy to get swept away in the string of market returns higher. Its been a spectacular run since September after all. But market declines often come when investors least expect them. To get a sense of the likelihood of a coming drop, we need to look at the internals of the market.
I am noticing a number of parallels that remind me of the lead up to the May correction we experienced this year: Continue reading