Negative sentiment keeps market up …
Extreme negative investor sentiment keeps market up, a Merill Lynch study shows:
- Investors are hoarding more cash then at any time since the Sept. 11 terrorist attacks
- Money managers turned “underweight” equities for the first time since March 2003
- The majority of respondents now say markets are facing a period stagflation
- 51% percent of respondents to the poll said their willingness to take on investment risks was “lower than normal,” the biggest percentage in more than seven years
- The percentage of those believing the global economy is currently in recession doubled in February to 16 percent, while those thinking a recession is “likely” in the next 12 months jumped to 28 percent from 19 percent.
- Favoritism for European stocks ended this month. Investors who were “overweight” the region’s equities fell to 7 percent, down from 23 percent in January and close to 60 percent six months ago
AUTSCH 
Remember … THIS FOLLOWS a fall in markets of up to a THIRD … Hmmm
Does that mean, that I should be buying Dax like crazy now? 
Fact is, that money managers obviously are too bearish and THAT explains nicely “weird” market reactions to the upside on really NOT bullish news …
as …
Buffett’s bond insurer story and today’s retail sales.
The main component being responsible for the better retail sales data was HIGHER GASOLINE prices and consumption … nothing which could excite a working brain
Tags: Merill Lynch, retail sales, sentiment
