Recent “smart money” polls are showing decisive turns to the “bull” case. I have included below recently published polls from Bespoke Investment Group and Birinyi Associates .The bullish tilt is unmistakable. Bespoke had this to say . . . “As shown below, there were more bulls than bears in our weekly market poll for the sixth consecutive week. Of the 348 respondents, 55% said the S&P 500 would be higher one month from now, while 45% said the index would be lower. This is the longest weekly streak of more bulls than bears since we began conducting the poll at the start of this year.”
Note that when the Birinyi poll went strongly bullish this time last year and in late 2010 and early 2011 the market did well. This is not scientific to be sure.
Our own polling of friends and clients on bullish sentiment has also turned measurably more bullish than last year when we made the same poll in late December. These polls are occurring at a time of neutral sentiment measures in the more broadly published investor sentiment polls. I was reminded this week of the following quote from John Templeton . . . “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria” -(HT to Al Boris). Jeb B. Terry Sr. Dec 19, 2012
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