Heads Up Everyone…….Pessimism In U.S. Stocks Fell To The Lowest Level Since 1987

Posted By on December 30, 2009

Pessimism about U.S. stocks among newsletter writers fell to the lowest level since April 1987, six months before the 20 percent crash in the S&P 500 known as Black Monday. The proportion of bearish publications among about 140 tracked by Investors Intelligence fell to 15.6 percent yesterday from 16.7 percent a week earlier.

Sentiment has improved since October 2008, when the financial crisis drove bears to a 14-year high of 54.4 percent……..I know things are better than a year ago, but are they so dramatically better with little downside risk?” Peter Boockvar, an equity strategist at Miller Tabak & Co. in New York, wrote in an e-mail to clients today. “Combine this sentiment reading with the VIX at 20 and 2010 will be interesting, especially with the very likely prospect of higher interest rates.”

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